London Daily

Focus on the big picture.
Saturday, Nov 08, 2025

Getting Serious? Illicit Finance Is Finally a UK Foreign Policy Issue

Getting Serious? Illicit Finance Is Finally a UK Foreign Policy Issue

The UK government’s commitment to reinvigorate its efforts to tackle illicit finance is welcome. Now the hard work starts.
The focus of most commentators on the UK government’s Integrated Review (IR) of Security, Defence, Development and Foreign Policy was inevitably the headline items: raising the cap on the UK’s nuclear warhead stockpile; the ‘tilt’ to the Indo-Pacific; the threat from Russia; adapting to China; cyber power; and growing the country’s science and technology power in pursuit of strategic advantage.

Frankly, those – including this author – who were hoping to see the UK’s age-old problem of being a facilitator of global illicit finance addressed in the IR were expecting to be disappointed. Under Boris Johnson’s government, illicit finance has yet to feature as a foreign policy and security priority. When challenged on the topic, ministers and others representing the government have struggled for a response that moves beyond referring to the Financial Action Task Force’s assessment that the UK holds the ‘top spot in [the] fight against dirty money’; or pointing to the newly introduced post-Brexit sanctions regimes. And while steps have been taken to bolster the UK’s criminal justice response to illicit finance, little has been done to assess and address the strategic challenges it poses, including considering the foreign policy and national security implications of neglecting the issue. Yet, those expecting to be disappointed had reason for cautious optimism; so too did allies – notably the US – that have been calling on the UK to leverage its central role in international finance to contribute to a greater extent to efforts to identify and disrupt kleptocrats, corruption and transnational organised crime.

Before turning to the pleasant surprises in the IR, it is worth addressing the inevitable criticisms that surfaced during the week. First, it is absolutely the case that the UK still lacks a proper strategy for addressing the central role it plays in global illicit finance. Does the IR provide such a strategy? No. Second, is more investment, better use of technology and far greater enforcement action needed to turn the tide on illicit finance in – and facilitated by – the UK? Yes, unquestionably. Third, are illicit finance responses in the document rehearsals of current or overdue projects, such as delivery of the Economic Crime Plan and reform of Companies House, that are worryingly prefaced with ‘as soon as parliamentary time allows’? Yes. And finally, has the Johnson government been woefully uninterested in engaging with the wider implications of the UK’s illicit finance issues? Yes, to the extent that many outside government that have been urging greater focus on illicit finance were resigned – until recently – to seeing no mention of the issue at all.

So, what were the pleasant surprises? First – and critically – the IR acknowledges that whatever the UK may (or more accurately may not) have been doing on illicit finance in the past, recent efforts have been below par, and thus the government commits to ‘reinvigorate [its] efforts to tackle illicit finance’.

Second, recognising that illicit finance is a potential tool of state and non-state actor interference against the UK, and an issue that contributes to global instability and conflict, treating illicit finance (and related serious and organised crime) as more than just a criminal justice challenge is welcome. The IR notes the role of illicit finance and coercive economic measures used to threaten the UK, as malign economic statecraft ‘will sometimes include the deliberate use of economic tools – from conventional economic policy to illicit finance – to target and undermine the economic and security interests of rivals’.

Third, the importance of the topic in Washington is clearly being noticed. Since before he entered the White House, President Joe Biden has made clear that cleaning up the international financial system and targeting its use by kleptocrats, the corrupt and international organised crime groups is a major priority. Key members of his administration, including Secretary of State Anthony Blinken and National Security Advisor Jake Sullivan, have reinforced this priority. It is therefore welcome that the IR notes the need to bolster cooperation on mutual areas of interest, such as tackling illicit finance, as a priority in the future relationship with the US. Similarly, the recognition that partnerships with ‘other major financial markets’ are needed to maximise impact is an important step.

Fourth, the damage caused to the UK’s economy and reputation is accepted. As the IR notes, ‘economic crime and illicit finance … undermine good governance and faith in our economy, and tarnish our global reputation by allowing corrupt assets to be held in the UK’. A statement of the obvious, but important nonetheless. In addition, the role played by illicit finance in facilitating serious and organised crime, state threats and terrorism is reiterated.

Finally, the centrality and expansion of the UK’s new ability to impose financial sanctions to hold state and non-state actors accountable is underlined – although the apparent centrality of sanctions to the government’s response to illicit finance remains concerning, however effective and satisfying they may be for signalling displeasure and promoting values and interests.

But at the end of all this, the glaring gap remains: acknowledging the extent to which the UK is central to the problem of international illicit finance. The dramatic cuts in the budgets of those departments that have previously led international illicit finance engagement for the UK, and the lack of a properly financed domestic response (for example, around asset recovery) do little to suggest that the government has its heart in the matter. Charitably, it could be argued that the fact that this issue is addressed in the IR is a first step, but some hard truths will need to be faced and openly acknowledged by the government if the promised reinvigoration is to be anything more than an aspiration.

For example, as argued previously, a much greater role must be played by the diplomatic, intelligence and security community in response to illicit finance, perhaps including addressing illicit finance as an explicit strategic objective of the Foreign, Commonwealth and Development Office. A more specific and ambitious role for the National Cyber Security Centre and GCHQ would be welcome, as would a sense that the prime minister really understands the damage illicit finance does to the UK (the term was notably absent from his comments to the House of Commons, and questions on ‘dirty money’ went unanswered).

As the IR itself recognises, ‘What Global Britain means in practice is best defined by actions rather than words’. The world still awaits those overdue actions on illicit finance.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
×