Organised crime groups are reportedly laundering hundreds of millions of pounds annually through Post Office branches across the UK. Criminals are exploiting the simplified deposit system, which lacks the checks typically found in banks, to legitimise illicit earnings.
Post offices have become central to cash transactions since 2017, when they began accepting deposits on behalf of banks. These deposits now exceed £30 billion each year. The system allows customers to deposit banknotes by inserting a bank card and entering a PIN, with the value credited to the linked account.
Leicestershire police's Operation Kilo, which began in 2021, uncovered a significant money laundering operation. Jigar Gheewala, who was unemployed and a declared bankrupt, received over £880,000 in cash deposits in 2020. His network used multiple post office branches to deposit thousands of pounds daily into various accounts, including those of 'mules' and companies in Leicester's garment industry.
Operation Kilo culminated in December 2025 with Gheewala being sentenced to almost 12 years in prison, alongside six co-conspirators. His group moved an estimated £53 million in two years. Similar schemes have been uncovered in Birmingham and Cheltenham, with individuals jailed for laundering millions through post offices.