Education

Private schools at risk of becoming conduits for organised crime and money laundering

Sunday, 2 November 2025 8:45AM UTC

The UK’s prestigious private schools face increasing scrutiny as organised criminals exploit them to launder illicit funds and facilitate the trafficking of children, prompting calls for tighter regulation and vigilance.

Gangsters and corrupt figures are increasingly using the UK's prestigious private school system as a vehicle to launder illicit funds and provide their children with elite education, raising alarms about the intersection of organised crime and the country’s educational institutions. The phenomenon reflects a broader international pattern where the proceeds of crime are channelled into private schooling, often through opaque financial transactions designed to conceal their origins.

The issue is not new, but recent cases underscore the scale and complexity of the challenge. According to the Independent Schools Council, the UK's private schools host over 61,000 foreign students, including significant numbers from China, Russia, and Nigeria—countries often linked in media and law enforcement reports to money laundering concerns. A notable example involves Gregory Bell, a convicted drug baron who led a sophisticated operation supplying Class A drugs across Britain. Bell’s illicit wealth funded his daughter's private school fees, which he notoriously paid in envelopes of cash handed directly to a school receptionist. His criminal enterprise, exposed through encrypted communications, illustrated how such payments evade traditional banking scrutiny, complicating efforts to trace illicit money flows.

Experts warn that the introduction of a 20 per cent VAT on private school fees, enforced from January, may inadvertently be prompting some parents to resort to cash payments, circumventing bank oversight. Tom Keatinge of the Royal United Services Institute highlighted that accepting substantial cash payments poses a direct risk for schools, potentially making them unwitting accessories to money laundering. He stressed that while banks serve as a critical check on suspicious funds, cash transactions bypass these safeguards, increasing vulnerabilities in the system. Regulators have clear restrictions on cash payments for high-value services, yet enforcement remains a challenge.

This misuse extends beyond the UK. In Ireland, Ciaran 'Sam' O’Sullivan, an associate of notorious crime figure Christy Kinahan, used criminal proceeds to pay for his daughters' education at a Swiss finishing school. Evidence uncovered at his home showed payments channelled through relatives' accounts, alongside purchases of luxury goods such as Rolex watches and designer handbags. Such cases illustrate the transnational dimension of laundering criminal wealth through educational institutions and luxury consumption.

Furthermore, the exploitation of private schools by corrupt elites has been well documented in West Africa. Former Nigerian governors Joshua Dariye and James Ibori notoriously siphoned millions from public funds to finance their children’s education in the UK. A report by the Carnegie Endowment for International Peace detailed how these funds were laundered to secure places and pay fees at prestigious British schools. Ibori’s spending included not only schooling but also luxury jets, high-end properties in multiple countries, opulent vehicles, and designer goods, highlighting a comprehensive laundering operation masked by legitimate expenditures.

Investigations have also linked leading British private schools, including Millfield, with dubious payments from foreign shell companies. Millfield was implicated in a large-scale money laundering operation involving a Russian ghost company and Latvian banks, with transfers reported to authorities in 2014. Despite such scrutiny, the prevalence of foreign students paying large fees, sometimes in cash, poses ongoing regulatory challenges. While a spokeswoman for HM Revenue and Customs noted that cash payments themselves are not illegal, organisations must remain vigilant and report suspicious transactions to prevent becoming conduits for financial crime.

Compounding these financial concerns are reports of more sinister criminal exploitation linked to the private school sector. Concerns have been raised about criminals using the UK’s visa system to traffic children for exploitation following their arrival under the pretext of education. Incidents involving Vietnamese minors disappearing shortly after entering the UK on student visas have prompted calls for schools to exercise extreme caution. Additionally, former gang leader Matthew Norford has highlighted the ease with which children in the UK can be groomed into drug trafficking, suggesting that private education venues may intersect with broader societal vulnerabilities exploited by criminal networks.

The intricate relationship between organised crime, money laundering, and private education prompts urgent calls for improved transparency, enhanced due diligence, and more rigorous enforcement. Schools, regulators, and law enforcement agencies must collaborate closely to ensure that educational institutions do not become unwitting facilitators of illicit financial flows or criminal exploitation.

📌 Reference Map:

Paragraph 1 – ^[1] (Daily Mail), ^[5] (The Independent)
Paragraph 2 – ^[1] (Daily Mail), ^[3] (LBC)
Paragraph 3 – ^[1] (Daily Mail), ^[3] (LBC)
Paragraph 4 – ^[2] (Sunday World), ^[5] (The Independent)
Paragraph 5 – ^[1] (Daily Mail), ^[4] (PM News Nigeria)
Paragraph 6 – ^[1] (Daily Mail), ^[5] (The Independent)
Paragraph 7 – ^[6] (Sky News), ^[7] (Global Citizen)

Source: Noah Wire Services

More on this

https://www.dailymail.co.uk/news/article-15230471/gangsters-private-school-children-cash.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 - Please view link - unable to able to access data
https://www.sundayworld.com/crime/courts/christy-kinahans-pal-used-crime-cash-to-pay-for-daughters-swiss-boarding-school/a2089377904.html - Ciaran 'Sam' O'Sullivan, associated with Christy Kinahan, used illicit funds to pay his daughters' fees at Surval Montreux, a Swiss finishing school. Evidence includes bank statements found in a Louis Vuitton briefcase at his residence, detailing payments made through an aunt's account. O'Sullivan also engaged in high-end shopping, purchasing items like a €6,600 Rolex and a Louis Vuitton bag. Additionally, he sold encrypted phones to gangsters and was linked to a significant Chinese money-laundering operation in Ireland. These activities highlight the use of criminal proceeds for educational expenses and luxury goods.
https://www.lbc.co.uk/article/drug-lord-school-fees-envelopes-cash-5HjdFgF_2/ - Gregory Bell, a drug lord, paid his daughter's private school fees in cash, handing envelopes directly to the school's receptionist. Bell, 43, led a sophisticated drug operation, owning 34 properties across east Manchester and two villas in Spain. His illicit activities included supplying various drugs and laundering money. The case underscores the use of criminal proceeds for educational expenses and the challenges in detecting such financial transactions.
https://pmnewsnigeria.com/2021/01/31/how-corrupt-nigerian-leaders-spent-millions-to-train-children-in-uk-schools-report/ - A Carnegie Endowment for International Peace report reveals that Nigerian political leaders have spent millions of pounds on their children's education in UK schools, often using funds embezzled from public coffers. Former Governors Joshua Dariye and James Ibori are cited, with Dariye spending an estimated £240,000 and Ibori £286,000 on UK education for their children. The report highlights the exploitation of the UK's education system for money laundering by West African elites.
https://www.independent.co.uk/news/education/top-private-schools-unwittingly-accepting-laundered-money-wealthy-foreign-criminals-moldovan-police-occrp-a7640811.html - Britain's top private schools, including Millfield, have been scrutinised for accepting laundered money from wealthy foreign criminals and corrupt officials. Moldovan police allege that Millfield received payments linked to a $22bn international money-laundering operation. The Independent Schools Council acknowledges the issue, urging schools to report suspicious funds to authorities. The situation underscores the need for vigilance in financial transactions to prevent money laundering through educational institutions.
https://news.sky.com/story/criminals-may-be-using-private-schools-to-traffic-children-to-the-uk-11854052 - Criminals may be exploiting the UK's visa system to traffic children into private schools, with the intention of later exploiting them for labour. Cases have emerged where Vietnamese children, aged 15, were brought to the UK under the guise of education, only to disappear shortly after arrival. The Boarding Schools' Association has advised schools to exercise extreme caution when accepting students from Vietnam to prevent such trafficking.
https://www.globalcitizen.org/en/content/ex-gangster-groom-children-trafficking-uk/ - Matthew Norford, a former gang leader, stated that it is 'too easy' for criminals to groom children into drug trafficking in Britain. He described how offering attention, nicknames, and promises of quick cash can lure children into the trade. Norford's insights highlight the vulnerability of young people to exploitation by criminal networks, emphasising the need for protective measures and awareness to prevent such exploitation.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 7

Notes: The narrative presents recent cases of money laundering through UK private schools, with specific examples and updated data. However, similar reports have appeared in the past, such as the 2017 article in The Independent highlighting the issue of private schools accepting laundered money from wealthy foreign criminals ([independent.co.uk](https://www.independent.co.uk/news/education/top-private-schools-unwittingly-accepting-laundered-money-wealthy-foreign-criminals-moldovan-police-occrp-a7640811.html?utm_source=openai)). The Independent article references cases like Nigerian politician James Ibori using private education fees as bribes to foreign officials. This suggests that while the current report includes updated data, the core issue has been previously reported.

Quotes check

Score: 6

Notes: The report includes direct quotes from individuals like Tom Keatinge of the Royal United Services Institute and references to previous cases involving individuals like James Ibori. However, the exact wording of these quotes varies from earlier reports, indicating potential paraphrasing or reinterpretation. The Independent article from 2017 does not provide direct quotes from these individuals, making it challenging to verify the exact wording.

Source reliability

Score: 5

Notes: The narrative originates from the Daily Mail, a publication known for sensationalist reporting. While it references reputable organizations like the Independent Schools Council and the Royal United Services Institute, the Daily Mail's credibility is often questioned. The Independent Schools Council and the Royal United Services Institute are reputable organizations, but their inclusion does not necessarily validate the overall reliability of the narrative.

Plausability check

Score: 8

Notes: The claims about money laundering through UK private schools are plausible and align with previous reports. The Independent article from 2017 highlights similar concerns about private schools accepting laundered money from wealthy foreign criminals. The inclusion of updated data and specific examples adds credibility to the current report.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents plausible claims about money laundering through UK private schools, supported by updated data and specific examples. However, similar reports have appeared in the past, and the source's reliability is questionable. Further verification from more reputable sources is recommended to confirm the accuracy of the claims.

Money laundering
Private education
Organised crime