UK law enforcement has arrested two people in Cornwall in connection with a large-scale waste fraud and money laundering case, raising concerns about criminal activity in the regulated packaging recycling market.
The arrests were made early on Monday as part of an investigation led by the Environment Agency into alleged abuse of the Packaging Producer Responsibility regime.
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Alleged manipulation of packaging recycling credits
The two suspects, a man and a woman both aged 47, were detained at separate addresses in Penzance by officers from the Environment Agency alongside Devon and Cornwall Police.
They were questioned on suspicion of fraud linked to the sale of packaging recycling credits, a system where accredited reprocessors generate tradable credits for recycled packaging and obligated producers must buy these to show compliance with recycling requirements.
Officials allege more than £6 million worth of recycling credits were sold on the basis of inflated or fictitious recycling activity.
A significant portion of the claimed reprocessing is understood to have never occurred, and the suspects are also accused of laundering proceeds from the alleged fraud.
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By GlobalDataAfter interview, both were released on bail pending further investigation.
Regulatory response and wider waste crime context
The Environment Agency’s National Environmental Crime Unit said the arrests mark progress in tackling organised waste crime, including complex economic offences in regulated recycling markets. The agency’s Economic Crime Unit investigates both fraud and money-laundering activities involving waste and packaging systems.
The government’s regulatory framework aims to ensure that businesses make a fair financial contribution towards recycling costs, but recent cases have shown abuses of the system can undermine legitimate operators and reduce funding available for lawful waste management.
Officials emphasised that evidence from ongoing enquiries will guide further action.
Enforcement trends in the UK waste sector
The latest arrests come amid heightened enforcement activity against waste crime across the UK.
According to parliamentary discussions, the Environment Agency receives tens of thousands of reports of waste-related offences annually, with a small proportion leading to formal investigations or prosecutions, reflecting the hidden nature of such crimes and challenges in detection.
Recent high-profile prosecutions in the waste sector include multi-site illegal dumping cases and significant civil penalties, underscoring government efforts to strengthen compliance and deter criminal behaviour.
These enforcement actions form part of a broader strategy to protect legitimate waste and recycling markets and to minimise environmental and economic harm.
This developing investigation is ongoing, and further arrests or charges could follow as authorities continue their work.
