AN MP has warned of a growing problem of small East Lancashire firms being targetted by crooks seeking to launder hot money.

And Burnley MP Peter Pike has called for more help to be given to small businesses to guide and help them to avoid traps within current legislation on money laundering.

He raised the issue in the Commons with Solicitor-General Harret Harman.

He said: afterwards: "I asked the question after an upsurge in money laundering problems in the East Lancashire area.

It had led to small businesses unwittingly becoming the victims and 'fall guys' to money laundering rackets."

Mr Pike asked Mrs Harman: "Do you accept that many small businesses have difficulty with the current legislation on money laundering?

"Do you agree that we should provide more guidance so that people do not fall into traps that they are not expecting?

She replied: "We are always happy to give guidance to small business.

"We keep in close contact with the chambers of commerce as well as the Federation of Small Businesses."