Serious Organised Crime Agency 'raids' on money service businesses in Bradford raises some questions

Serious Organised Crime Agency and West Yorkshire Police visit to money service businesses in Bradford raises some questions

A co-ordinated operation on 14th - 16th July 2008 led by the Serious Organised Crime Agency (SOCA) and West Yorkshire Police saw visits to more than 40 money transfer businesses in the city. The initiative was done with the aim of causing little interference as possible to those who were visited so that they could carry on trading.

Over a three day period, SOCA made visits to MSB's without giving any prior warning to the business owners. Working on the basis of warrants issued by Rotherham magistrates. SOCA were able to enter premises unhindered and were able to seize and copy all material found for subsequent examination off site which were returned to all relevant business owners within 24hours.

£100,000 in cash was seized during the raids, most of this money was returned to the business owners without further action.

Sources within SOCA have indicated that they have informed and initial picture of what the operation has revealed. They have noted that:

1. A number of the MSB's visited were not registered with HMRC (in direct contravention of the 2007 Money Laundering Regulations)

2. Many businesses were failing to comply fully with obligations imposed under the 2007 MLR's (in particular, businesses could not demonstrate that they had trained their staff adequately).

3. There were concerns about the extent and quality o f record keeping.

4. There was evidence that businesses did not have procedures in place which allowed them to identify suspicious customer behaviour - nor did they know how to report the suspicious behaviour to the authorities.

All the information they have gathered is still being examined to see what if any action should be taken against individual businesses, it is too early to say whether any criminal charges will follow.

Source: SOCA (Serious Organised Crime Agency)