Tag: Crime

Thousands of premises have been targeted in the second iteration of Operation Machinize, a national initiative targeting the criminal exploitation of high street businesses.

Operation Machinize 2, led by the National Crime Agency (NCA) and conducted in cooperation with the National Police Chiefs’ Council (NPCC), ran throughout October and involved every UK police force and Regional Organised Crime Unit, Home Office Immigration Enforcement, Trading Standards, HM Revenue & Customs and Companies House.

During the operation, the partnership delivered:

• 2734 premises visited and raided
• 924 individuals arrested
• Over £10.7m of suspected criminal proceeds seized
• Over £2.7m worth of illicit commodities destroyed

These figures include the removal of 70Kg of cannabis from our streets, 111,000 harmful, illegal vapes, 4.5m illegal cigarettes and 622Kg of illegal tobacco (equalling £3.5m of duty taxes evaded). Furthermore, 341 Referral Notices for illegal working and renting were issued meaning businesses could face fines of up to £60,000 per worker with landlords facing fines of up to £20,000 per tenant if found liable, and over 450 companies have been referred to Companies House for further investigation.

This is the largest operation of its kind focused on rooting out the economic crime and grey economy that makes our high streets less safe and prosperous.

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.

High street businesses such as mini-marts, barbershops, vape shops, nail bars, and car washes are used to make the proceeds of crime appear like the legitimate profits of a trade or service. High street businesses are also being used to sell illicit products and evade tax, and are often linked to other types of criminality such as drugs supply and the serious violence it causes.

Earlier this year, the NCA established Operation Machinize after identifying the criminal exploitation of high street businesses was beyond the scope of any one organisation. Working in partnership with the NPCC, it aims to catalyse a large-scale operational response to a multi-faceted problem.

This approach – coordinated nationally and delivered in our communities – ensures the most effective use of powers and capabilities, capitalising on the strengths and remits of each participating agency.

Machinize was established to target economic crime on the high street with this iteration also 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 is remains a priority for the partnership.

Rachael Herbert, Director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targets businesses on our high street that are being used as cover for a wide range of criminality, making our communities less safe and less prosperous.

“This second phase of Operation Machinize has set a new standard for what can be achieved through the coordinated action of UK law enforcement. Thousands of officers have been deployed up and down our country, targeting criminal profits and the means of generating them.

“Hundreds of thousands of harmful and illegal products have been taken off our streets, and over £10m in cash, frozen in bank accounts and criminal assets seized.

“Depriving criminals of their source of income has a real impact, limiting the amount of funds they can reinvest in further offending and deterring them from taking spaces on our high street that could be used by legitimate businesses.

“These excellent results demonstrate what can be achieved in partnership and show the determination of UK law enforcement to keep our communities safe. We ask for the public’s support as we move forward and to continue to report suspected criminality to the police.”

Sal Melki, Senior Lead for Machinize 2 at the NCA, said: “Machinize 2 has pioneered a whole-system approach to addressing this problem, with the NCA hosting a joint operational cell where our partners could bring their powers, expertise, and energy to tackling an issue the British public care about.

“Over the course of the month, we have learnt a lot about the threat, the different types of offending occurring on our high street and what tactics are effective in combatting it. We have also learnt that this type of offending is not restricted to any one area, type of shop or demographic.

“The scale of this challenge is significant, but it is also important to remember that the majority of shops on our high streets are not considered suspicious.

“While there is organised crime occurring at the top of the pyramid, we do not underestimate the aggregated effect that thousands of shops engaged in so-called lower level criminality is having on our communities and the criminal supply chains that profit from them. The Machinize model therefore relies on local knowledge and delivery just as much as national coordination and intelligence.

“This phase of the operation has been a big success and is one of the largest operations of its kind. We acknowledge the problem won’t be solved overnight or through disruptive action alone – today’s high street is subject to many socio-economic factors beyond the scope of a law enforcement partnership.

“We are therefore working closely with government to use the learning from this operation to build on and develop long-term solutions.”

Security Minster, Dan Jarvis said: “Criminals are using these dodgy shops as fronts for serious organised crime, money laundering and illegal working, risking the future of the British high street.

“We have intensified our joint efforts with law enforcement to dismantle criminal networks and relentlessly pursue those who use dirty money for personal gain.

“Together we have seized millions in criminal assets, removed harmful drugs from our streets and arrested hundreds of criminals who are undercutting honest business owners. I want to thank every officer who took part in this operation.”

Deputy Commissioner Nik Adams, NPCC Lead Financial Investigation: “This action has seen a huge collective effort from UK law enforcement agencies, working together to tackle organised gangs who exploit cash intensive businesses for criminal gain.

“We’ve seen every force in England and Wales working to build intelligence pictures, ensuring we are targeting people who are laundering illicit cash through businesses. We know this money will have links with other forms of criminality such as the exploitation of workers, people trafficking and the sale of illicit goods.

“Not only are we tackling this activity but through this action, we are gaining information and forming a wider picture on high harm offending. Our message is clear, we are alive to the activity happening and we are identifying and bringing to justice those who misuse businesses on our high streets for illegal gain.”

Kevin Hubbard, Director of Individual and Small Business Compliance at HM Revenue and Customs, 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.”