Why the UK needs a Bibob Act

• Businesses like vape shops, barbers and car washes are being used by organised criminal gangs to exploit immigrants and launder money.
• Under current UK law authorities must wait until illegal activity has been uncovered before they can act.
• The Dutch Bibob Act allows authorities in the Netherlands to investigate people applying to open new businesses and to refuse licences if links to crime are suspected.
• The forthcoming licensing scheme for nicotine and vape retailers offers the perfect opportunity to build in a UK Bibob Act. 

The recent BBC investigation into Twana Jamal has reignited fears that Britain’s high streets are an easy target for organised crime. Jamal, who has previously been described as one of Europe's most prolific people smugglers, received a five-year prison sentence in France in 2016 for smuggling migrants. Yet the BBC found that he has been living in the Leicestershire village of Blaby, where he was reportedly running two vape shops on the same street, one next to the constituency office of local MP Alberto Costa.

While Jamal’s case is shocking, police say that it is far from unique. The National Police Chiefs' Council has warned that barber shops, hand car washes, nail salons and vape shops are increasingly being exploited by criminal gangs to conceal illegal working, exploit vulnerable migrants and launder the proceeds of crime. But why are they allowed to open in the first place?

Criminal businesses often operate openly, but under current UK law authorities must wait until illegal activity has been uncovered before they can act. This has fuelled calls for the UK to adopt a Dutch-style Bibob Act, an Act that lets authorities look under the bonnet before a business opens its doors, checking who is really behind it before granting the green light.

The proposed licensing scheme for nicotine and vape retailers could offer a chance to try out a UK version of the Bibob Act, which would give authorities the power to refuse licences where there are credible concerns about organised crime, stopping suspect businesses before they open their doors, rather than waiting until crimes have already been committed. It would not eliminate organised crime overnight, but it would help stop suspected criminals from setting up shop in the first place.

In the Netherlands, before a licence is granted, the relevant authority carries out an initial assessment using information provided by the applicant, publicly available sources and, where appropriate, information from law enforcement. Where risks are identified, the case can be referred to the National Bibob Bureau (NBB), a specialist unit within the Dutch Ministry of Justice and Security.

The NBB then undertakes a detailed investigation, which can take up to 12 weeks, before providing the licensing authority with a formal risk assessment.

Under the Bibob legislation, a licence may be refused or withdrawn where there is a serious risk that a business will be used to benefit from the proceeds of crime, enable new criminal activity, or where there is evidence that offences were committed in obtaining the licence. Importantly, the assessment is not limited to the named applicant; the backgrounds of directors, shareholders, financiers and other individuals connected to the business are also considered.

The forthcoming licensing scheme for nicotine and vape retailers offers the perfect opportunity to build in tougher background checks. A UK equivalent of the Bibob Act would not wipe out organised crime overnight, but it would give authorities the power to prevent suspected criminals from opening shops in the high street in the first place, rather than waiting until the damage is done.