Britain should tighten controls on the gambling industry and monitor the activities of wealthy foreigners to combat money laundering, according to a report by the US State Department.

The annual International Narcotics Control Strategy Report identified Britain as “a jurisdiction of primary concern” and said that despite improved anti-money-laundering laws and regulations, at least £15 billion of criminal profits is processed through Britain each year.

Washington specifically called on Britain to pay greater attention to the activities of “politically exposed persons” – individuals connected to foreign regimes – who hold investments or who have bought expensive property in London and the South East. The most wealthy criminals, the report stated, were increasingly “purchasing high-value assets to disguise illegally obtained money”.

The State Department questioned whether British legislation, which was supposed to tighten the monitoring of suspicious transactions, may have helped money launderers by abandoning controls on assets held overseas.

“Authorities should track and examine the effects of the change regarding acts and assets in or from foreign jurisdictions, and revisit this legislation to determine whether it has been effective, or whether it has enabled exploitation,” said the report.

The US findings echo concern among senior police that the fight against organised crime is not a priority for the Government. The subject merited only a passing mention in the Prime Minister’s national security statement this week.

According to the US, Britain is a favourite place for money launderers, alongside Afghanistan, the Cayman Islands, Cyprus, Liechtenstein, Pakistan and the United Arab Eimrates.

The report also names Guernsey, Jersey and the Isle of Man as money-laundering destinations. Other developed countries, including Italy, France and the US itself are also identified.

Detailing specific concerns in Britain, the State Department reported that tighter regulation of the financial industry has led to criminals moving their proceeds physically or via money transfer services. The report said: “Although narcotics are still a major source of illegal proceeds for money laundering, the proceeds of other offences, such as financial fraud and the smuggling of people and goods, have become increasingly important.

“The past few years have witnessed the movement of cash placement away from high street banks and main-stream financial institutions as these entities have tightened their controls and increased their vigilance. The use of bureaux de change, cash smugglers and traditional gatekeepers (including solicitors and accountants) to move and launder criminal proceeds has been increasing since 2002.”

The report cites analysis by the Serious Organised Crime Agency which estimates that £15 billion is laundered through Britain. But that analysis is already said to be out of date. The US report added: “Businesses that are particularly attractive to criminals are those with high cash turnovers and those involved in overseas trading.

Illicit cash is consolidated in the UK and then moved overseas where it can more readily enter the legitimate financial system, either directly or by means such as purchasing property. Cash can be smuggled in several ways: it can be transported by courier, freight or post and moved through the various points of exit. Cash-smuggling techniques are adaptable; smugglers can easily change techniques if they suspect law enforcement is targeting a particular route or method.

“Because cash is the mainstay of the drugs trade, traffickers make extensive use of money transmission agents, cash smuggling and ‘underground banking’ to remove cash from the UK. Heroin proceeds from the UK are often laundered through Dubai en route to traffickers in Pakistan and Turkey. Cocaine proceeds are repatriated to South America via Jamaica and Panama.”

The report said that tighter banking rules led to criminals creating “cash-smuggling operations to move large sums of sterling out of the country”.

It is believed that the bulk of the £32 million still missing from the 2006 Securitas raid was taken out of the country in suitcases packed with cash.

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