The ‘National risk assessment of money laundering and terrorist financing 2020’ analysis, compiled by the UK Treasury and Home Office and released this month, finds it leading the pack of countries washing dirty money in Britain.
Pakistan has been funneling terror funds into the UK, according to Britain’s investigation.
The report illustrates how the United Kingdom has become a hub for Pakistan’s dirty money and how criminals and terrorists exploit the loopholes in the British financial system.
In page 35, there is a section on Pakistan. It describes how the UK’s close economic links with Pakistan is hurting the country.
The report says the economic links are enabling the transfer of illicit funds in disguise – that’s the code for black money.
The British report said Pakistan criminals are using the routes to buy high-value assets like real estate, precious gems and jewellery to launder money.
The report says these are proceeds from corruption and drug trafficking as criminals siphon dirty money into the UK then they buy assets like jewels and property turning the illicit cash into legitimate assets.
Pakistanis are, however, not the only ones. The report names other countries and regions like China, Hong Kong, and the UAE.
The report shows how the UK’s financial system is flawed as it helps those with black money.
The biggest problem is how cash is transferred. In the UK, money remittance and foreign exchange shops on the streets especially in areas with a higher number of immigrants.
Immigrants use these shops to send money home but, some shops reportedly also facilitate drug trade and violent crime.
Background checks for fund transfers is non-existent, according to one claim these shops “rarely ask for proof of address and source of funds”.