More needs to be done to stop money launderers rinsing dirty money through the UK property market, MPs and peers have said.
The joint committee on the draft Registration of Overseas Entities Bill highlighted numerous loopholes, in its pre-legislative scrutiny report, published this week. For example, the Bill does not cover trusts as they are not technically ‘entities’.
Other concerns included exemptions in the draft Bill for certain entities, the need to keep information updated, the need for a transparent register of foreign entities that own property, and the lack of verification checks to deter criminals from falsifying information. The committee suggested using civil penalties rather than criminal sanctions, which would be more difficult to enforce.
In 2017, 160 properties worth more than £4bn were identified as being purchased by high corruption-risk individuals, and 86,000 properties have been identified as owned by companies incorporated in secrecy jurisdictions.
Committee chair Lord Faulks said: ‘There’s a huge problem, and it’s not going away. Time is of the essence.’
