REVEALED: UK govt refused to assist a French investigation into suspected money laundering by telecoms giant Lycamobile – saying the company is the “biggest corporate donor to the Conservative party” & gives money to a trust founded by Prince Charles. buzzfeed.com/heidiblake/uk-…
Jaw-dropping correspondence between UK officials & their French counterparts reveals the French wanted British authorities to raid Lyca's UK HQ last year as part of their investigation into money laundering and tax fraud by the company – but the government said no. 
The UK govt response went on to say that Lycamobile would be likely to challenge any raids on its properties in court and may succeed because the French request did not contain enough “solid information”. The request stalled, and Lycamobile’s UK offices were never searched.
The French launched their investigation into money laundering & tax fraud by Lyca two years ago after BuzzFeed News secretly filmed three bagmen employed by the company dropping cash-stuffed rucksacks at Post Offices all over London. buzzfeed.com/heidiblake/thi…
19 people were arrested in raids across Paris after investigators identified tens of millions of euros suspected of originating from organised criminal networks flowing through Lyca's French companies – and into its UK bank accounts. buzzfeed.com/heidiblake/the…
But the UK authorities have done nothing to investigate – and the Tories have accepted £2.2m from Lyca, including £870,000 since BuzzFeed News exposed its suspicious business practices. The party has now told us it will not accept any further donations from Lyca.
The response from HMRC – the UK govt department that refused the French request – when we approached them with questions about this story was nothing short of sublime.
Lord Macdonald, England’s former director of public prosecutions, said the government’s response represented “a descent into banana republic law enforcement” – and called on the UK authorities to cooperate fully with the investigation.
Commons public accounts committee chair @Meg_HillierMP said she would grill HMRC officials over the response when they appear before MPs later this month. “The size of a company or its connections should not have any bearing on whether HMRC go in and do an investigation."
.@YvetteCooperMP, home affairs committee chair, said HMRC’s response was an “extremely serious concern” and called for an independent review into Britain’s decision to refuse to assist the French investigation. “Political donations should never be a reason for HMRC not to act."
Lycamobile – which has reported an annual turnover of €1.5 billion and legally avoids corporation tax by moving money to the tax haven of Madeira through its vast network of more than 60 offshore companies – has always insisted that its business is wholly aboveboard.
