City of London Finance

City of London is a separate legal entity to England but still under the king. Hence all the banking industry is located there, to add another step in the money train to tax heavens.

For financial stuff, proximity matters and London is one of the largest financial centers

That's funny, the UK regards London as the financial centre of the world.

This happens primarily because the city of London has a lot of exceptions provided to it by the EU and becomes an attractive place for the Americans, Chinese and Japanese institutions to funnel money into EU markets. It is really in a role similar Hong Kong vis a vis China. With Brexit, EU every reason to promote places like Luxembourg and other financial centers as the financial hub and end exceptions that make City of London competitive. Banks being banks will simply close offices and move bus

I don't think that's the reason. London is one of the world's financial centers.

It seems UK and London are becoming the capital of the world.

The City of London is a notorious tax-haven and seems to have created a bubble of jurisdictional exemption around itself.

As long as the City of London is independent of that!

The UK financial services sector is involved in money laundering. That does not have much to do with its location in the City of London. The City of London Corporation is essentially just a local authority and does not have the kind of governing powers that would enable it to play a major role in money laundering. For example, it does not regulate financial transactions or pass laws (except the largely inconsequential local ‘byelaws’ that any UK local authority can pass).

The City of London is such a place.http://en.m.wikipedia.org/wiki/City_of_London