To think this sounds like money laundering?

[Beetleback]

There’s a takeaway shop on our high street that is constantly being refurbished. It occasionally opens for a few weeks or months, then closes again for a long, elaborate refurbishment. This has happened maybe four times in the last few years.

There’s a lot of muttering locally about money laundering, but I really don’t understand how that would work? Can anyone explain it to me?

Oh, I know. I’m not disputing that. Some trade, some don’t.

Can anyone explain how money laundering works in this way? I understand that if you have a nail bar you can maybe bring in £20,000 per year but tell the authorities you have £100,000 per year - the difference is cash from selling drugs or whatever.

How does it work with them doing up places, when none of that would involve cash, would it?

@whumpthereitis the ones who get caught quickly don't trade 😂

If they're not actually trading then what do they say when customers approach them?? I must be more naive than I realised

@OhComeOnFFS Name calling? Wow. Having a bad day??

Two things.

1. As a takeaway (or whatever), you keep depositing a monthly income of, say, £10k whether you're open or closed. If it's a month where you're closed, your whole income will be dirty cash (generally from drug dealing). On months when you're open, it will be a mix.

2. As a construction company, you create fake contracts and invoices to show that you're doing a load of construction work. The value of the invoices is overinflated or just a lie and the work isn't taking place at all. You get paid though and deposit it in your bank account. If there are any questions about the source of the money, you have the documentation to prove it's legit,

Both companies will probably be part of a large network of linked companies, all controlled by an organised criminal gang. The sophisticated groups will have their own lawyers and accountants setting all these schemes up too.

Oh and sorry, as a construction company you might get paid in cash or you could just be getting paid directly from the takeaway's bank account. Part of money laundering involves moving it around the system a lot so it's less likely to be detected.

And is it a fact that organized crime, by definition, has links to authority. Lawyers, police, local and central government.

They are all on the take, while telling the little people how to live.

How naive am I? I wondered why some small towns have been overrun by Turkish barbers!

@mynameiscalypso can you explain why I couldn’t buy Euros in the Post Office yesterday because I only had Apple Pay to pay with? The cashier said it was for money laundering regulations but I don’t understand how Apple Pay is inherently dodgier..:

Turkish barbers, takeaways, nail bars, car washes are awash with money laundering to clean drug money and other moneys.

Everyone knows so no idea why the dark economy is if ignored by agency's but it is.

And that's before we get started on modern slavery the nail bars etc employ.

It might not be from your account/phone. The more transparent the payment the less chance of it being a dodgy source. Even buying euros in general they want to see id and or if it’s a large amount how you have the means to pay for it and why you want it holiday/business trip etc

@AlfietheSchnauzer

Who reports a shop which is not open? Where are you reporting it to?

This is why the onus of the law has now been put on to Financial institutions and solicitors / law firms to report under POCA

Because trading standards/police already know. Either they profit from it or are waiting for a moment to strike.

we have loads of shops around here that are a blatant front for money laundering and drugs. All in plain sight. It’s no secret to anyone in the know.

Yup. Trading is the cover. I remember one near where I used to live got caught for it a few years ago. They were popular, which is one of the reasons they were able to do it so successfully (right up until they got caught, anyway).

Electronic transfers are easily traceable. Cash isn’t.

Nevermind, misread. Sorry!

@whumpthereitis my chicken shop example below was reported because so many people were excited about a chicken shop which never opened and got pissed off 😂

@Soakitup37 I still don’t think I understand the logic. Surely tapping my bank card for the same account is no better?

@Fantina Did you have ID with you too? Can't see why Apple Pay would otherwise be worse than a card and can't see anything on their website about it. They were probably just being a bit over zealous.

I did have ID but it wasn’t asked for, the cashier just said I could not pay with Apple Pay and that was that as I didn’t have another form of payment on me.

There's a sweet shop in town near us and I've only seen it open a handful of times, yet there it is still trading apparently. We thought it was money laundering too.

I'm very naive about these kind of things. Recently drove through town with a friend's Dad who used to be a policeman so he can spot these places a mile off, and he pointed out each place he suspected. Few weeks later overheard gossip giving name of local drug dealer and nosey beggar me went onto Companies House and looked up all the places friends Dad mentioned, and lo and behold, most of the bars and takeaways are owned by the local dealer. And he's also listed as being secretary of company who owns half the nail bars, tanning shops and "beauty studios" (that never even PRETEND to be open) which are registered in his girlfriends name. I now feel quite cool and with it to be aware of the shady goings on in town..... I'm such a boring geek I feel like Walter White just to know this stuff 🤣