Hidden in Plain Sight: Why Bookkeepers and Accountants Must Stay Alert to Everyday Money Laundering

Money laundering is often portrayed as a shadowy, complex crime involving offshore accounts and sophisticated networks. For many who serve local clients in small towns, it’s hard to believe it can be happening a lot closer to home—and far more ordinary looking. The IAB compliance team came across recent headlines about the sudden boom of barbershops across Welsh towns. We thought sharing this would serve as a powerful reminder that illicit money doesn’t always hide in dark corners. Sometimes, it’s sitting right there on the high street.

Taking a step back, in basic business terms, the stats speak for themselves. In Porth, a small town with just 6,000 residents, there are reportedly 13 barbershops operating within a short stretch of road. That works out to about one barber for every 227 men in the area. On the surface, it looks like a quirky trend or a reflection of changing grooming habits, but the National Crime Agency’s recent crackdown tells a different story. Their three-week operation targeting cash-heavy businesses froze over £1 million in assets, made 35 arrests, and safeguarded 97 people suspected of being victims of modern slavery. Many of the businesses raided were barbershops.

For bookkeepers and accountants, stories like this are more than news—they’re warnings. We work with businesses of all shapes and sizes, from startups to family-run shops. While most are genuine, hardworking enterprises, some can be used—knowingly or not—as vehicles for laundering dirty money. The challenge for us is knowing how to distinguish between them.

Looking Beyond the Books

As professionals, we focus on the numbers: turnover, invoices, cash flow. But real-world awareness means asking whether those numbers actually make sense in context.

If a high street already has more barbers than customers, yet another opening should raise questions. Does the business model stack up? Are the cash flows realistic? Do ownership changes happen unusually often? None of these signs proves wrongdoing on their own, but they are red flags worth noting.

Professional scepticism isn’t about distrusting every client—it’s about staying curious. It’s about being willing to pause and ask, “Does this add up?” and then documenting your thought process.

The Human Side of the Problem

One of the most striking aspects of the NCA’s operation was the discovery of people working under exploitative conditions, with modern slavery at play behind the façade of everyday shops. That’s a sobering thought. Money laundering isn’t just about numbers on a spreadsheet—it can be tied to very real human suffering.

During her presentation at Accountex London in May, IAB CEO Sarah Palmer touched on the ethical and social responsibility of finance professionals in the context of AML.

“AML isn’t just about staying compliant. It’s about protecting people and those most vulnerable in our society.”

By staying alert, bookkeepers and accountants aren’t just protecting their own reputations and practices. They’re helping to disrupt criminal networks and safeguard vulnerable people. That’s something to take pride in.

A unique position

Our profession has a unique vantage point. We see the financial heartbeat of businesses in a way few others do. That puts us in a position of trust—and responsibility. If we take things at face value, we risk missing warning signs. If we develop a habit of professional scepticism, we can spot patterns that others might overlook.

This isn’t about becoming investigators or policing every client relationship. It’s about blending technical skills with everyday common sense. Numbers should tell a story, and if the story doesn’t ring true, it’s our job to question it.

Practical Ways to Stay Alert

• Trust your instincts: If something feels “off,” don’t ignore it.
• Know your client’s world: Be aware of local economic realities. If ten similar businesses are fighting over a small customer base, consider how sustainable it really is.
• Look for patterns: Frequent changes of ownership, unusual cash volumes, or reluctance to provide basic information should stand out.
• Talk openly: Sometimes asking a few simple questions clears things up. Sometimes it doesn’t—and that’s when you need to dig deeper.
• Keep learning: Stay up to date with trends in how criminals operate. Stories like the barbershop boom are reminders that tactics evolve.
• Submit a SAR: Report your suspicions to the NCA through a Suspicious Activity Report (SAR). Not only a legal obligation for accountants and bookkeepers, but it also passes valuable intelligence on to law enforcement so that they can build a clearer picture of potential criminality and take action.
• Why me? Always ask yourself why a client has chosen you. Is your practice conveniently close to the client, have you been recommended as an expert in their industry or the service you offer, or is the opposite true? Being unfamiliar with the industry a client operates in makes it harder to spot red flags, splitting services across multiple practices prevents any one professional from spotting aspects of the business that don’t align and keeping a geographical distance reduces the likelihood of you visiting the client and seeing discrepancies between claimed and real operational output.

Money laundering isn’t an abstract issue tucked away in financial centres—it’s on our doorsteps. The barbershop boom in Wales shows just how easily suspicious activity can blend into everyday life; you may see a synergy with your local high street.

As professionals, we can’t afford to take things at face value. By staying sceptical, aware, and willing to question the story behind the numbers, we not only protect ourselves and our clients—we also play a vital part in protecting our communities.