Urgent Call for MPs to Purge Dirty Money Infesting UK Property
The Guardian raises concerns over the delayed Economic Crime & Corporate Transparency Bill, calling for action to combat illicit funds infiltrating the UK property market.
As the parliamentary Summer recess commences, crucial business remains unfinished, and at the forefront is the Economic Crime & Corporate Transparency Bill (ECCTB), a potential game-changer in the battle against "dirty money" flooding the UK property market.
A Gap in the System
In an eye-opening feature, The Guardian advocates for closing the loophole that allows illicit funds to find their way into UK properties, hidden behind secretive ownership structures. The headline boldly asserts, “MPs must close loopholes to drive out dirty money from UK property”.
The Numbers Speak
Arun Advani, Anna Powell-Smith, and Andy Summers from The Guardian, explain that while current regulations demand transparency from individuals and UK companies in the property ownership process, a significant gap still exists for those acquiring property through foreign companies. This legal manoeuvre has facilitated over 130,000 properties in England and Wales to be registered under foreign companies, with their actual owners shrouded in mystery.
While the recently introduced Register of Overseas Interests has taken strides to improve transparency, it falls short in addressing properties held in trusts by overseas entities, allowing for anonymity of the "real" beneficiaries, which criminals exploit to mask their ill-gotten gains.
A Call for Closure
An amendment to the ECCTB, put forward by Lord Agnew, offers hope in closing this loophole. The amendment aims to mandate public reporting of beneficial owners of all overseas companies that own UK property, irrespective of whether trusts are involved. This move would dismantle the two-tier system that favours those seeking to conceal their assets behind offshore structures, ensuring transparency for all property owners.
However, the bill's passage in its current form is not guaranteed. The Summer break provides MPs with an opportunity to reflect on the significance of curbing illicit financial flows and the essence of their initial efforts to combat hidden property ownership.
The Guardian urges MPs not to leave the task half-done, emphasising that unmasking those seeking the last refuges to hide their ill-gotten wealth is of utmost importance. Lord Agnew's proposal puts the ball in the government's court, and citizens will be closely watching their next move.
“Closing the loophole offered by a two-tier system for the benefit of those with something to hide, is essential. Whilst the super-prime property sector serves the super rich, it is important that as an industry, we maintain integrity and continue to fight corruption. The Luxury Property Forum promotes a collective effort, to push for the closure of this loophole, unmask concealed ownership, and eradicate illicit funds from the UK property landscape. We will be hosting masterclasses and providing insight to members on how to improve their KYC checks and internal due diligence. Embracing transparency will is an essential step in ensuring an environment that upholds the standards of excellence we strive for at The Luxury Property Forum.”
The fight against dirty money infiltrating the UK property market demands immediate action. As The Guardian warns, the ECCTB represents a chance for MPs to unveil the veil shrouding concealed property ownership, reinforcing the integrity and transparency of the nation's property sector.
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Founder & CEO of The Luxury Property Forum
Priya Rawal
priya@theluxurypropertyforum.com
@priya.rawal.london on Instagram