New research by anti-money laundering software provider SmartSearch suggests up to £464m has moved through more than 3,000 UK shell companies branded as hairdressers, barber shops, mini-marts and corner shops, but apparently used for money laundering and terrorist financing. The findings add to growing concern about the integrity of the UK company register, with ministers and MPs already warning that off-the-shelf businesses are being exploited by criminals, and follow recent government moves to crack down on suspect high street retailers such as vape shops and betting outlets.

The analysis, covering Companies House records from 2016 to 2026, identified 3,097 dissolved companies with average lifespans of 170 to 194 days, clustered around the same postcodes, addresses and incorporation and dissolution dates, including 119 suspected firms in a single area of Cardiff. Most were set up in the first half of the year and dissolved by the fourth quarter, a pattern SmartSearch's chief executive Phil Cotter said pointed to a "repeatable model of exploitation" outpacing regulatory reform; the report estimates £310m to £464m has passed through these firms alone, potentially exceeding £1bn across similar high-risk sectors over the past decade.