A self-employed accountant has handed over £ 1.9million to the High Court to settle a civil action for alleged links to a criminal gang responsible for laundering £ 160million in drug money.
The National Crime Agency’s civil recovery claim was based on evidence linking Abid Naveed to a large-scale money laundering operation previously investigated by the NCA.
The original investigation found that profits from illicit drug trafficking were deposited through banks in the Manchester and Birmingham areas into accounts of the Manchester-based Money Service Bureau called Mian International Limited.
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Over a period of two and a half years, from 2008 to 2011, over £ 160 million was laundered in this way.
To facilitate this money laundering company, a network of other companies has also been built. As a result of the NCA’s investigation, a total of 32 people were convicted of money laundering and drug offenses.
After completing the money laundering proceedings, the NCA initiated a civil recovery of Naveed’s assets.
On November 23, 2018, the NCA filed a civil recovery lawsuit against Naveed, Heald Green, Cheadle, Stockport alleging that he was involved in a wide variety of criminal activities including money laundering and mortgage fraud.
The NCA argued that 52-year-old Naveed was using a network of companies under his control to purchase property and mix the proceeds from his illegal behavior with legitimate business revenues.
On April 25, 2021, Naveed agreed to settle the NCA’s claim by handing over £ 1.9 million, including cash in bank accounts and funds from the sale or refinancing of real estate.
Andy Lewis, Head of Civil Recovery at the NCA, said, “The services of professionals such as accountants are an important tool in preventing money laundering, acting as gatekeepers to move money into the legitimate banking system. Everyone who offers these services is responsible for following the rules and making sure they do not encourage money laundering.
“This deal represents a significant result for the public as it will receive back £ 1.9 million to be returned to public finances and used to fight criminal activity.”
Rachael Herbert, director of money laundering threat response at the National Economic Crime Center (NECC), said, “This is a significant finding. The UK is facing enormously complex, often transnational, money laundering systems that abuse the services of UK-based professionals and its regulated sectors.
Manchester’s courts are among the busiest in the country, with a large number of cases heard each week.
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“Enablers of money laundering are a priority for the NECC and we are committed to bringing them to justice. The recent changes to the Crown Prosecution Service guidelines have further enhanced the tools of the financial investigator and will help law enforcement agencies disrupt professional enablers who facilitate money laundering. ”
The High Court approved the civil recovery order on Monday June 21
Civil recovery procedures under Part 5 of the Criminal Investigation Act 2002 provide for the recovery of property acquired through illegal conduct and therefore constituting or representing proceeds from criminal offenses.
In contrast to criminal seizure, civil recovery does not depend on a criminal conviction and the process is brought in the form of a civil action in the High Court.
Civil recovery focuses on property, not person, and whether or not property is collectible is determined by the High Court based on civil evidence, namely the weighing of probabilities.
