Money Laundering

[Khandro]

As part of a crackdown on money laundering police in Shrewbury recently raided one of the many middle Eastern barber shops proliferating in British high streets ("which seen curiously empty"). The barbers claimed they had a turnover of £1.8 million - impressive for a town of 76,000 people!

How does this caper work? How do they launder money through a barber shop?

[barry1010]

They claim they have x amount of clients per day paying y amount each. These clients don't exist.

They produce fake invoices for goods they haven't bought and show wages for non-existent staff.

 

[douglas9401]

It would be more if it wasn't for the cuts.

[Khandro]

barry; But from where do these pounds originate? Does someone bring them 'dirty' money which they launder for a price, or are the barbers themselves the criminals?

[davebro3]

it's from drugs innit...

[barry1010]

The barbers might be part of a drug gang but it is unlikely they would deal the drugs themselves.

[bednobs]

I think the whole point is there are no barbers.

[Old_Geezer]

Probably wash it in the sink, then use a hair drier on it.

[davebro3]

I think the turkish barbers are just a useful conduit but many barbers have dealing as a secondary (?) source of income.

[Khandro]

We watched a Netfix series called, I think, Ozark or something, where they had a floating casino steam boat for money laundering activities.

I can see with a casino you might have large sums of cash, but a barber's seem an odd way to do it. Perhaps as dave says it's cash from drug sales & they buy the pounds at a discount price, bank them and put them through their books.

Hence the empty shops - they don't need to give  haircuts at all, and plod looks on.  

[Ellipsis]

Yes, Ozark. It was very informative:

https://www.northrow.com/blog/what-can-we-learn-about-money-laundering-from-ozark

[Hymie]

It’s really very simple – imagine you have £10 million in money obtained through selling/importing drugs; authorities might very well ask from whence this money came when you buy multimillion pound properties.

But when you point out that the money is profits from your candy stores in Oxford St. and local barber shops – problem solved.

[ToraToraTora]

barbers are ideal, they could list all the fake hair cuts as cash and the money is clean. Oddly enough they also pay tax as a legit business in many cases so the government is getting its cut of dirty money! The tax/wages etc would be seen as a legit cost of cleaning the dosh.