High street businesses targeted in crackdown on grey economy crimes
Law enforcement agencies visited almost 200 premises across Scotland to target high street businesses involved in money laundering and other criminality as part of the UK wide Operation Machinize.
Officers from Police Scotland, Trading Standards, HMRC, the Department of Work and Pensions, Home Office Immigration Enforcement visited barbers, vape shops, nail bars, mini markets and car washes which encourage customers to use cash as payment to avoid paying tax and duty.
The multi-agency, intelligence-led initiative, co-ordinated by the National Crime Agency (NCA), which ran throughout the month of October, saw a number of arrests and agencies seize illicit cigarettes and tobacco as well as counterfeit goods.
Detective Chief Superintendent Dave Ferry, said:
“The month of activity saw law enforcement partners undertaking intensive activity to disrupt those involved in this type of criminality and who exploit vulnerable people in our communities.
“Money laundering and supplying illicit products for their own criminal benefit is a scourge. Much of this activity is being undertaken by serious organised crime groups and can lead to the identification of other serious criminality such as human trafficking or modern slavery.
“Multi-agency operations like these underline our commitment to keeping safe and tackling serious organised working together as part of Scotland’s Serious Organised Crime Taskforce.”
Justice Secretary Angela Constance said:
“Businesses who participate in money laundering and other criminality exploit vulnerable people in our society for their own despicable ends, and I welcome the positive results achieved by Op Machinize.
“Partners on Scotland’s Serious Organised Crime Taskforce remain fully committed to using all means at their disposal, including the significant resources available to them through the Scottish Crime Campus, to identify those involved in serious organised crime and ensure they are held to account.”
Minister for Transformation, Andrew Western said:
"We have a duty to the taxpayer, and this operation demonstrates our zero tolerance for fraud.
“By working collaboratively with law enforcement agencies, we are cracking down on fraudulent activity across the country and ensuring those who scam the system face the consequences."
Kevin Hubbard, Director of Individuals and Small Business Compliance at HMRC, said:
“We are determined to allow honest businesses to thrive which is why it’s crucial we work closely with our law enforcement partners to take action against any business that we suspect are undermining the tax system.
“The majority pay the tax that is due, but we will pursue those who refuse to play by the rules.”
The NCA estimates that at least £12bn of criminal cash is generated in the UK each year, which is typically smuggled out of the country or integrated into financial systems, often to be recycled back into criminality.
Operation Machinize was established to target economic crime on the high street focusing on the grey economy. There is a known overlap with the exploitation of high street businesses, illegal working and the evasion of customs and excise duties.This overlap also includes modern slavery and unsuitable living and working conditions, and safeguarding individuals at risk.
