'Britain's FBI' carries out series of dawn raids on barbershops in crackdown on money laundering

11 April 2025, 10:53 | Updated: 11 April 2025, 12:24

• Reform UK Leader Nigel Farage told LBC he is "astonished" police haven't done more to tackle money laundering through cash-only shops

Hundreds of barbershops have been targeted by police in a three-week crackdown on money laundering and modern slavery.

The National Crime Agency (NCA) has targeted 265 shops and salons across England, in an effort to tackle illegal activity and prevent gangs using cash-focused businesses to conceal proceeds of crime.

The NCA crackdown led to the shut down of 10 businesses, 35 arrests and 97 individuals suspected to be victims of modern slavery placed under police protection. The NCA declined to say whether any of those arrested had been charged with an offence.

The operation, which involved 19 different police forces and regional organised crime units, saw officers secure freezing orders over bank accounts totalling more than £1 million.

They also seized more than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, and more than 8,000 illegal vapes, the NCA said. Officers also found two cannabis farms containing a total of 150 plants.

The NCA estimates that £12 billion of criminal cash is generated in the UK each year.

Reform UK Leader Nigel Farage spoke about the use of cash-focused businesses to hide illegal activity with LBC's Nick Ferrari.

He said: "Anywhere you go, really, any market town in the country, you'll find half a dozen barbershops. You know the drill. You go in, no customers, cash only, Lamborghini out the back. And it's been going on for years."

Mr Farage said he was "astonished" the police haven't done more to tackle this. He added: "We know, of course, they're not Turkish anyway, they're Iraqi or Iranian or Kurdish. In fact, there's probably half a dozen crossing the channel right now that'll be in one of the shops next week."

He believes most of the illegal activity is related to drugs, but added there are other crime elements too. He said: "It's money laundering. It's a way of funnelling large amounts of cash through, declaring some of it to the tax man. And that's what the racket is. And of course, the cash, you know, the drugs trade is all cash."

Rachael Herbert, deputy director of the National Economic Crime Centre at the NCA said: “We know cash-intensive businesses are used as fronts for money laundering, facilitating some of the highest harm and highest impact offending in the UK.

“We have seen links to drug trafficking and distribution, organised immigration crime, modern slavery and human trafficking, firearms, and the sale of illicit tobacco and vapes.

“Operation Machinize targeted barbershops and other high street businesses being used as cover for a whole range of criminality, all across the country.”

The agency said in a statement: “Cash-intensive businesses such as barbershops, vape shops, nail bars, American-themed sweet shops and car washes are often used by criminals to conceal the origins of illicit cash.

“Crime gangs use them to enter cash into the financial system, mixing legitimate funds with criminal profits to hinder subsequent law enforcement investigations.

“They are known to buy such businesses using the proceeds of crime, which provides them with a legitimate income and opportunities for money laundering.”

Security minister Dan Jarvis said: “High street crime undermines our security, our borders, and the confidence of our communities, and I am determined to take the decisive action necessary to bring those responsible to justice.

“This successful NCA-led operation highlights the scale and complexity of the criminality our towns and cities face and demonstrates our collective determination to make our streets safer, a key pillar of this Government’s plan for change.

“We will continue to support the NCA, and other law enforcement partners, as we make the UK an even more hostile environment for organised crime.”