On Monday in Parliament, the Business Secretary, Kwasi Kwarteng, made a statement on Corporate Transparency and Economic Crime Measures, bringing forward new legislation to tackle economic crime following Russia’s invasion of Ukraine.
The new legislation will help the National Crime Agency prevent foreign owners from laundering their money in UK property and ensure more corrupt oligarchs can be handed an Unexplained Wealth Order (UWO). The new register will require anonymous foreign owners of UK property to reveal their real identities to ensure criminals cannot hide behind secretive chains of shell companies, setting a new global standard for transparency. Entities who do not declare their ‘beneficial owner’ will face restrictions over selling their property, and those who break the rules could face up to 5 years in prison.
Under the reforms being brought in on UWOs, those who hold property in the UK in a trust will be brought within scope and the definition of an asset’s ‘holder’ will also be expanded to ensure individuals can’t hide behind opaque shell companies and foundations.
Richard Fuller MP, a Member of the Business Select Committee, said:
I supported the Secretary of State for Business in his statement on clamping down on the illicit flows of international capital.
I also highlighted the importance of legitimate international capital markets, an area where the City of London excels and which supports many entrepreneurs in this country, and asked that his measures would take due regard in supporting these markets.
Richard's contribution and the Minister's response can be watched here and read here.
