A United States (US) Department of State report has listed some of the world’s largest economies including the US, Germany, the United Kingdom and China as hot spots for money laundering.
- •Cash-based and high-end money laundering are the greatest risks in the UK while Germany’s primary risks stem from its substantial, cash-driven economy and global interconnectedness.
- •South Africa, Nigeria, Kenya, Tanzania, Ghana and Senegal represent Africa in the 2024 list which also includes India, Italy, Mexico, Spain, Hong Kong, Netherlands among others.
- •Kenya, which updated its “Proceeds of Crime and Anti-Money Laundering Act” in 2023, is vulnerable to money laundering schemes with its financial institutions cited as the weakest link.
According to the 2025 International Narcotics Control Strategy Report, the UK’s tepid economic growth, hampered in past years by the impacts from Brexit, COVID-19 safety measures, and political instability, led to constrained budgetary resources for law enforcement and international efforts to tackle the vice.
“Intelligence gaps persist, particularly regarding high-end money laundering, where proceeds are held in complex trading arrangements, real estate, or other non-cash investments,” notes the report.
The main methods of laundering in the country are cash collection networks, international controllers, and money service businesses. Criminals often use professional services to disguise the origins of funds, using legal, accountancy, and company service providers to establish corporate structures for laundering purposes.
The report says, sophistication and the reach of China’s criminal network outpace enforcement capabilities, making the country a global hub for money laundering. Illegal drug production and trafficking, human trafficking, smuggling, intellectual property theft, crimes against property, tax evasion, and illicit financial activity linked to North Korea are also primary sources of laundered funds. Criminal gangs also exploit virtual currencies. Corruption is also a major factor in enabling the vice in China.
Nigeria is a major location for the laundering of proceeds from scams around the world. The most vulnerable sectors in the country are financial institutions, hospitality, automotive, and real estate.
Common laundering methods in the West African country include trade-based money laundering, currency smuggling, the use of front or shell companies, currency exchanges,the purchase of securities and luxury goods, and the manipulation of real estate transactions.
