Home Office Minister Tom Tugendhat has announced a plan for tackling ‘money mules’. They’re someone who moves and hides illegally gained money on behalf of criminals, such as drug dealers, human traffickers and fraudsters.
The plan includes a newly funded post at The Children’s Society to raise awareness of child financial exploitation. The Home Office quotes the counter-fraud trade association Cifas, which estimates some 37,000 bank accounts demonstrated behaviour associated with muling in 2023. About £10 billion of illegal money is laundered each year in the UK, according to estimates from the National Crime Agency (NCA).
Last month when hearing evidence towards an inquiry into fraud, the Home Affairs Select Committee of MPs heard from Chris Ainsley, Head of Fraud Risk Management at Santander, that especially younger customers might have allowed their accounts to be used by organised criminals, ‘or there may be situations in which that person has set up the account entirely to use it as a fraudulent recipient. However, actually getting the police to take action on that criminal is difficult’. The MPs heard how organised crime gangs are using social media platforms to advertise for fraud mules or to encourage people into crime. ‘Mule herders’ recruit mules.
Around 23pc of money mules are thought to be under 21, and most, 65pc are under 30, according to the Home Office. They are often groomed by criminal gangs, who offer them the prospect of making easy money, the authorities suggest. Once they are in the system, the gangs will then coerce them into committing further offending, such as through blackmail, debt bondage and sextortion. Hence a new Financial Exploitation Lead at The Children’s Society to educate bank staff, teachers and the police.
The Westminster Government is publishing guidance that will enable practitioners to recognise and respond to financial exploitation linked to money laundering so that victims, and potential victims, can get the protection and support they need.
Tom Tugendhat said: “I am determined to prevent heinous criminals who exploit our children and profit from it, and it is paramount we stop this vicious cycle. The Children’s Society’s invaluable work will protect victims who are being exploited while our wider action plan will ensure these evil criminals face the full force of the law.”
And Katie Darlington, Financial Exploitation Lead at The Children’s Society, said: “We’re working to better identify and tackle child financial exploitation, a growing harm that’s part of wider work on tackling child abuse. Such exploitation can inflict real trauma on children caught up in it and they need our help, not blame. With expertise of frontline professionals such as teachers, youth workers and police officers alongside the knowledge of the bank sector, and most importantly by listening to children and young people themselves, our approach will make sure this work is driven by the insights and experiences of the young people most affected.”
The National Economic Crime Centre (NECC), part of the NCA, is already working with police and the private sector, as well as abroad, against money muling, the Home Office adds. The NCA has committed to delivering a public awareness campaign on money muling, as well as to continue working with the Home Office, private sector and third sector partners on a money mules online hub, to contain guidance.
Nick Sharp, Deputy Director of the NECC, said: “Money muling is used by organised criminals to conceal the profits of some of the most serious crimes in the UK. At the NECC, we work tirelessly with our colleagues in policing and in the private sector, both in the UK and across Europe, to stem the flow of illicit funds. We know that a substantial proportion of money mules are under the age of 30, and many are groomed or coerced into providing the service while at sixth form, college or university. Those involved put themselves and those around them at risk by communicating with dangerous criminals, and by becoming complicit in serious and organised crime.
“We are proud to be working with the government to prevent more young people being exploited, and raise awareness of what is a significant threat to the public.”
The City of London Police, the lead police force on economic crime, will set up an intelligence unit to target money mule herders specifically, and feed intelligence into police regional organised crime units (ROCUs).
Background
The Home Office recently launched an advertising campaign, urging the public to stop and think about fraud. Visit https://stopthinkfraud.campaign.gov.uk/. Visit the website of the charity Catch 22, for a poster for parents, carers, and professionals to explain what child financial exploitation is, what the signs are, and how to report and protect children who are affected by it.
A London Assembly member Len Duvall has called for more to be done about money laundering at street level: ‘The Government must give young people the information they need to stay vigilant against predatory ‘get-rich-quick’ schemes that could see them drawn into serious crime.
“On top of this, we must support our police forces to protect Londoners against the community-level impacts of money laundering. Greater funding for the London’s police force is a good place for the Government to start with this and I urge them to work with the Metropolitan Police to ensure anti-laundering experts stay in the force.”
