Here are the top 10 countries where British criminals launder their money

The Isle of Man is well known as a tax haven — with 0% corporation tax and 20% income tax — but it's also a money laundering hotspot too it seems. Seven people were arrested earlier this year across the Isle of Man, the UK, and Guernsey, suspected of a £21 million money laundering fraud.

One of the UK's four overseas Asset Recovery Advisors — officials tasked with recovering proceeds of crime — is posted to cover the Carribean. Most of his time is likely spent dealing with the British Virgin Islands. The country is another tax haven known for the huge number of offshore companies legally based there. Disclosure is also limited, which has made some banks reluctant to deal with companies registered there.

Cyprus is also known for its relatively lax fincial system. An EU-commissioned report in 2013 damned the island's money laundering checks and earlier this year The Independent claimed that: "Russians have deposited millions of dollars in cash in the Mediterranean island of Cyprus in what local bankers suspect has been a giant scheme to launder the profits of covert Middle East arms sales and the proceeds of Moscow's mafia."

Hong Kong is an Asian finance hotspot.

The South China Morning Post reported last month: "The number of serious fraud cases involving money laundering in Hong Kong has soared, police revealed, as syndicates increasingly recruit non-locals to clean their dirty cash.

"There were nine laundering cases in the first half of this year alone, involving around HK$456 million. Yet in the whole of last year, there were only four cases, with about HK$245 million laundered."

Like many of the countries on the list, Liechtenstein was traditionally seen as a tax haven and finance is one of the biggest industries in the tiny, land-locked country.

Liechtenstein was criticised for lax financial controls in two reports released in 2000 and the BBC says: "The reports said that the Liechtenstein banking system enabled gangs from Russia, Italy and Colombia to launder money from their criminal activities."

Since then Liechtenstein has moved to reform its banking system, easing secrecy laws, and struck deals with countries including the UK that make recovering stolen or illegally bought assets easier.

Spain has traditionally been the location of choice for British gangsters looking to retire in the sun. But the government has long since cottoned on to this and the report says the UK has done deals to "make Spain a more hostile place for UK criminals."

The UK has had an Asset Recovery Advisor (ARA) posted permanently in Spain since last year and over £1 million has been confiscated since then.

The secrecy of Switzerland's banking system is legendary, but that leaves it open to abuse by criminals who don't want their money to be traced. The country recently announced tougher anti-money laundering rules, with the Swiss Banking Association saying: "The fight against money laundering and terrorist financing are central issues for the Swiss financial centre."

Pakistan is a hotspot for terrorist financing, as well as money laundering, with lots of undeclared cash passing through the country. The government's report says of countries like Pakistan: "A lack of strong governance, weak regulations, an absence of the rule of law, lack of financial investigation legislation or capacity, a lack of genuine partnership working in certain countries all provide additional challenges."

Like Spain, the government has a dedicated Asset Recovery Advisor stationed in UAE and has also negotiated asset-sharing agreements with the country to help detection and action.

Like Switzerland, Hong Kong, and Liechtenstein, the financial clout of the UAE in the Middle East makes it a target for money launders. The CIA's World Factbook entry for the country notes: "The UAE's position as a major financial center makes it vulnerable to money laundering; anti-money-laundering controls improving, but informal banking remains unregulated."