Source · Select Committees · Foreign Affairs Committee
Recommendation 21
21
Acknowledged
UK complicit in laundering illicit drug trafficking gains through the City of London
Conclusion
Drugs trafficking is a complex issue with close links between the trade and ruling elites as well as organised crime. There are also linkages to funds originating from the drugs trade being channelled through the City of London. The UK cannot shirk its responsibilities: it is not only the source of demand for narcotics but is also complicit in the washing of the illicit gains of the trade. (Paragraph 78) Trade and investment
Government Response Summary
The government partially agrees with the conclusion, acknowledging the issue of illicit drugs and money laundering. They describe ongoing efforts to monitor drug markets, respond to synthetic drug threats, and strengthen domestic defences against money laundering through existing plans and legislation.
Government Response
Acknowledged
HM Government
Acknowledged
Partially Agree. The illicit drug market costs UK society an estimated £22bn per year and is linked to around half of all homicides, with 95% of heroin thought to come from Afghanistan. In April 2022, the Taliban announced a ban on the use, cultivation, production and trafficking of narcotics in Afghanistan. We are working closely with like-minded partners to assess and monitor the implementation and effects of this announcement. No impact on UK drug markets has been identified to date. UK agencies are also highly alert to the threat from synthetic drugs, including synthetic opioids like fentanyl. Along with law enforcement partners, the UK Government stands ready to respond to the threat from synthetic drugs. The Home Office is coordinating work across government to monitor and respond to the risk from synthetic opioids to the UK. We are further strengthening the UK’s domestic defences against money laundering through the second Economic Crime Plan and Economic Crime (Transparency and Enforcement) Act 2022 (see above).