A United Arab Emirates–registered company, GLORY LINE GOODS WHOLESALERS CO L.L.C, has agreed to forfeit £17.5 million following a major civil recovery investigation conducted by the UK’s National Crime Agency (NCA).
The investigation, led by the NCA’s Asset Denial Unit, focused on suspicious funds received by the company from a Hong Kong–based customer, totalling more than CNH 200,000,000 (approx. £20.5 million). The company claimed the payments related to a large consignment of plastic materials. However, investigators believe the transactions were linked to trade-based money laundering (TBML).
Red Flags and Freezing Order
In September 2023, concerns were first raised regarding the volume of funds passing through GLORY LINE’s UK-linked account. A review revealed that two auditor reports submitted to a UK Authorised Payment Institution were fraudulent.
The NCA subsequently obtained an Account Freezing Order in November 2023 to prevent any dissipation of the suspected criminal assets.
Despite GLORY LINE submitting extensive documentation to justify the transactions, many records were riddled with significant discrepancies, including inaccurate invoices and missing payment records. Critically, the company failed to produce bank statements, price negotiations, or details relating to the acquisition of the business by its Indian owner, Sankar Velu.
No Criminal Finding Made
Although Velu denies any criminal wrongdoing, and Westminster Magistrates’ Court has made no criminal finding or admission of guilt, the company has agreed to the civil forfeiture of £17.5 million via a Consent Order.
NCA Statement
Rob Burgess, Head of Asset Denial at the NCA, stated:
“The Agency deploys all powers available to identify, pursue and recover the proceeds of crime, even if the criminality in question took place overseas.
In this case, NCA officers worked tirelessly to comb through complex documents, securing a significant settlement and demonstrating our commitment to carefully scrutinising money that flows into or through the UK, including via UK-regulated companies.”
What Is Trade-Based Money Laundering?
Trade-Based Money Laundering (TBML) is a method where the trade of goods and services is manipulated to disguise illicit financial flows. It is increasingly used to funnel the proceeds of crime through seemingly legitimate business channels across borders.
