Money is power.
People will assume that this statement is so obvious it shouldn’t need highlighting. But in the realms of organised crime and its dealing with corrupt officials within governments, financial institutions, property and business acquisition throughout Europe – including the UK – it is the crucial element. It applies to the wider world, but in this piece, I intend to concentrate on European nations including the UK.
If this situation is so clear and has been for over 30 years, how have UK law enforcement agencies, which in theory should be supported by government, been addressing this serious issue that affects entire populations, even if they do not realise it?
Drug Trafficking Offences Act
We can go back to 1986 when new legislation allowed the tracing and confiscation of drug-related assets, and allowed the institutions mentioned previously to disclose suspicious transactions. This legislation has been subsequently greatly enhanced. Were law enforcement agencies in a position to respond, then and now? In brief, the answer to both is, no.
In 1986 a small team within the National Drug Intelligence Unit (NDIU) was formed to examine and respond to this new area of investigation, liaise with financial institutions within the City of London and wider UK. Each police force trained small dedicated teams. As leader I became the first UK police officer to become a member of the G7 Financial Action Task Force, attending meetings in Paris, Strasbourg and the USA to ‘spread the word’.
International crime liaison
It soon became apparent that the liaison with other enforcement agencies within Europe and the USA was lacking. In fact, in many cases there was no operational and intelligence cooperation. Yes, there was Interpol for routine exchange of messages and non-urgent enquiries but the requirement was live operational and intelligence contacts.
Between 1988 and 1990 drug and criminal intelligence liaison officers were stationed around Europe, the USA and to a lesser extent South America and Southeast Asia. In Europe this included France, Germany, Netherlands, Spain, Portugal, Türkiye and in my case Italy/Albania. The NDIU became the Serious and Organised Crime agency (SOCA), and today the National Crime Agency (NCA). What would we accomplish without the regular re-badging exercise?
Defanging the mafia
It was soon apparent to me and my colleagues that enforcement forces within Europe were very active in the world of financial investigation and intelligence. The classic example being Judge Giovanni Falcone and his team based in Sicily and later Rome, whose whole ethos in arresting the higher echelons of Italian organised crime syndicates (the Mafia) was to ‘follow the money’.
By basing his investigations around this format, he managed to arrest and convict hundreds of known Mafiosi throughout Europe and the USA. In my work with Falcone both in London, the Channel Islands and later in Italy, he never missed an opportunity to reinforce this mantra.
Of course, in 2022 the situation has grown more crucial and the power of organised crime groups throughout Europe has escalated. Yes, the Italian organised crime groups, Cosa Nostra, Camorra and Ndrangheta are still extremely influential, but are now joined by often violent mafia groups from Russia, Türkiye, Albania, and further afield.
Human trafficking
The amount of money generated by the traditional forms of international crime, drug and arms trafficking, counterfeiting and fraud is now greatly enhanced by human trafficking and the huge corrupt payments made to local and ruling government/parliamentary officials, in particular by corrupt Russian oligarchs many of whom reside in the UK.
Monies accumulated by human trafficking is vast, and the actual trafficking operation does not include the inherent danger of arrest to the main principles (the leaders of crime syndicates). Therefore, financial intelligence, investigation and the seizure of criminal assets should be the main and crucial thrust being followed by enforcement agencies throughout Europe, in particular the UK.
Money laundering
It has been acknowledged by many within UK law enforcement – and to a much lesser extent by government – that London is a centre of money laundering for international organised crime groups. Some say it is the centre of the world’s money laundering activities. I’ve read that £150bn pounds is laundered through London each year, both to offshore accounts and within the vast London property and business empire. I would suggest this might be a conservative estimate.
So, what is the response? Has it improved since those early, productive days of 1986? Yes, the legislation has been enhanced, including the introduction of the rarely used, ‘Unexplained Wealth Orders’. But has the ‘skillset’ also improved within the many law enforcement agencies that should be dealing with such an important element of criminal investigation? Has the seizure of criminal assets (houses, cars, yachts and businesses) soared? Regretfully, the answer is no.
Cutbacks have decimated specialist crime teams
The majority of police forces have no officers dedicated to this form of investigation. Many experienced staff within the central bodies have either retired or now work in the private sector. Government cutbacks within police forces and central agencies have led to the decimation of such teams which should be at the forefront of major money laundering investigations.
The overseas liaison network is still in place. In fact, it has enhanced since those early days, but is severely compromised by the idiocy of Brexit and the beginning of the breakdown of the UK/EU law enforcement cooperation.
The danger of returning to the pre-1990s situation is ever present. The power of organised crime groups has never been stronger. The City of London is still compromised by corrupt Russian, Middle Eastern and offshore tax-haven money and influence.
It is imperative we return to the mantra of Judge Giovanni Falcone. It’s time once again to “follow the money!”
