How Money Laundering Took Over London — with Oliver Bullough

London Loophole

The financial landscape of London transformed dramatically post-1950s, creating a loophole that allowed money laundering to thrive. Oliver Bullough explains that bankers in the City of London discovered they could bypass both British and American restrictions by banking with dollars instead of pounds, effectively creating a legal space with no rules 1. This loophole attracted banks worldwide, leading to a surge in both legitimate and illegitimate money flowing through London.

The City of London created what they called offshore, a legal space where there were no rules, prioritizing those who could afford the fees.

--- Oliver Bullough

This amoral enabling culture, originating in the 1950s, accelerated over the decades, turning London into a hub for global money laundering 2.

   

Legal Progress

Recent efforts in Britain aim to tackle money laundering and increase accountability, especially following the Ukraine crisis. Oliver Bullough notes that new laws have been introduced to impose transparency on offshore-owned property, making it harder for oligarchs to hide assets in the UK 3. However, the real challenge lies in enforcement, as even innovative laws like the unexplained wealth orders have faltered due to insufficient resources.

The glass is maybe an 8th full, having gone up from a 16th. So that's not insignificant progress, but there's a huge amount of work still to do.

--- Oliver Bullough

The future of these efforts depends on political will and international influence, particularly from the US, to maintain pressure on illicit finance practices 4.