Unscrupulous convenience retailers have been targetted by law enforcement agencies, who visited almost 200 businesses across Scotland last month to tackle money laundering and seize illicit goods.
Officers from Police Scotland, Trading Standards, HMRC, the Department of Work and Pensions, Home Office Immigration Enforcement visited c-stores, vape shops, barbers, nail bars and car washes which encourage customers to use cash as payment to avoid paying tax and duty.
The activity was the second part of the UK-wide, multi-agency, intelligence-led initiative, Operation Machinize, co-ordinated by the National Crime Agency (NCA).
In total, the partnership saw 2734 premises visited and raided across the UK and 924 individuals arrested. Over £10.7m of suspected criminal proceeds were seized and over £2.7m worth of illicit commodities were destroyed.
These figures include the removal of 70kg of cannabis, 111,097 illegal vapes, 4.5m illegal cigarettes and 622kg of illegal tobacco (equalling £3.4m 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.
Police Scotland Detective Chief Superintendent Dave Ferry, said: “The month of activity saw law enforcement partners undertaking intensive activity to disrupt those involved in this type of criminality and who exploit vulnerable people in our communities.
“Money laundering and supplying illicit products for their own criminal benefit is a scourge. Much of this activity is being undertaken by serious organised crime groups and can lead to the identification of other serious criminality such as human trafficking or modern slavery.
“Multi-agency operations like these underline our commitment to keeping safe and tackling serious organised working together as part of Scotland’s Serious Organised Crime Taskforce.”
Justice Secretary Angela Constance said: “Businesses who participate in money laundering and other criminality exploit vulnerable people in our society for their own despicable ends, and I welcome the positive results achieved by Op Machinize.
“Partners on Scotland’s Serious Organised Crime Taskforce remain fully committed to using all means at their disposal, including the significant resources available to them through the Scottish Crime Campus, to identify those involved in serious organised crime and ensure they are held to account.”
Minister for Transformation, Andrew Western said: “We have a duty to the taxpayer, and this operation demonstrates our zero tolerance for fraud.
“By working collaboratively with law enforcement agencies, we are cracking down on fraudulent activity across the country and ensuring those who scam the system face the consequences.”
Kevin Hubbard, Director of Individuals and Small Business Compliance at HMRC, 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.”
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.
Operation Machinize was established to target economic crime on the high street 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.
