Post office counters operating from convenience stores are being used by organised crime groups to launder millions of pounds in cash, raising fresh concerns about the vulnerability of high street retailers, an investigation by The Guardian has found.
The investigation, published today (Aug 25), highlights how criminals are exploiting the Post Office network as banks continue to close branches.
According to The Guardian, Post Office branches now handle "more than £30bn" in bank deposits annually, while law enforcement agencies estimate that hundreds of millions of pounds of illicit cash may be passing through the network each year.
The investigation centres on the case of Jigar Gheewala, who was sentenced to almost 12 years in prison after running a major money-laundering operation in Leicester.
Despite being unemployed and on benefits, Gheewala's bank account received more than £880,000 in cash through 200 deposits during 2020. Investigators found that the money was deposited across multiple post office counters, including those operating from convenience stores.
Over a two-year period, Gheewala's network is understood to have moved around £53m, with criminal cash arriving from London and Yorkshire before being distributed among people acting as 'mules' who deposited it into bank accounts. The money was then moved onwards, including through cryptocurrency exchanges.
Convenience stores in the laundering trail
The Guardian's investigation describes how Gheewala's couriers would travel between multiple post office counters in Leicester, including branches hosted within ordinary convenience stores.
In some cases, large amounts were deposited into several accounts at the same location using different bank cards and PINs.
Leicestershire Police financial crime supervisor Laura Panter said investigators identified a "consistent pattern" of deposits around post offices and subsequently discovered other individuals apparently carrying out similar activity.
The Leicester case is not isolated.
In Birmingham, two men were jailed in January 2026 over a £17m money-laundering operation involving cash deposits at numerous Post Office branches across the east of the city. Investigators found the group was depositing as much as £200,000 a day, with individuals making more than 10 visits to different branches to avoid suspicion.
West Midlands Police said the investigation uncovered a professionally organised operation involving business bank accounts and companies allegedly set up to layer illicit funds. Around £976,000 was ultimately seized and forfeited.
A growing role for the Post Office
The issue has become more significant as the UK's banking infrastructure has changed.
Post offices began accepting cash deposits on behalf of banks in 2017. At the same time, two-thirds of bank branches have reportedly closed over the past decade, leaving businesses and consumers increasingly dependent on the Post Office for access to cash banking services.
Post Office cash deposits have risen sharply despite the decline in cash use among consumers. Monthly deposits increased from £1.9bn in October 2020 to £2.9bn in October 2025, according to figures cited by The Guardian.
The Post Office subsequently stopped publishing detailed monthly figures, citing concerns that the information could alert criminals to the amount of cash held at branches.
A key concern raised in the investigation is the way Post Office banking transactions are structured.
Unlike a conventional bank branch, Post Office staff cannot access the account details linked to a bank card being used for a cash deposit. The system is designed to make transactions quick and straightforward, meaning staff cannot necessarily establish whether the person making a deposit is the account holder or identify wider patterns of suspicious activity.
One police officer told The Guardian that there was "no requirement for ID verification" and no centralised CCTV system of the kind found in many banks.
The Post Office said its branches receive annual training on recognising and tackling money laundering and that its head office issues alerts where suspicious activity appears concentrated.
Ben Woollard, the Post Office's head of banking, also said post office operators receive transaction fees for banking services, meaning branches earn more as the volume of transactions increases.
Retailers caught in the middle
The issue presents a particular challenge for independent convenience retailers, which often operate Post Office services precisely because they provide an essential banking facility to their communities.
The investigation does not suggest that convenience retailers are knowingly facilitating money laundering. Instead, it highlights how criminals can exploit a system in which the retailer providing the physical counter may have limited visibility of the financial activity taking place.
The problem is further complicated by the fact that legitimate cash-intensive businesses depend on the Post Office precisely because traditional banks have withdrawn from many high streets.
In 2023, the Financial Conduct Authority introduced limits on cash deposits through the Post Office, prompting criticism from business groups concerned about the impact on legitimate retailers and other cash-dependent businesses.
The scale of the threat is underlined by the National Crime Agency's estimate that around £12bn in cash is laundered in the UK each year.
As one senior police officer told The Guardian, criminals are increasingly attracted to post offices because they are among the few remaining places where substantial amounts of cash can be paid into the financial system.
For retailers operating these counters, the report rings alarm bells that the Post Office may bring customers through the door, but it can also bring a new layer of financial crime risk that convenience stores cannot afford to ignore.