New Property Register Intended To Prevent Money Laundering

A new property register is intended to prevent money laundering. A new register that recently went into effect is aimed at oligarchs who use UK property to hide illicit money. Any unidentified foreign firm looking to purchase land or property in the UK will have to disclose the real owners. Foreign corporations that refuse to reveal their true owner risk fines of up to £2,500 per day or prison terms of up to five years.

The registry is released as a result of the Russian invasion of Ukraine, which has prompted economic sanctions. Foreign corporations with land in the UK will have six months to register their management or beneficial officers.

Business Minister Lord Callanan said: "We have been clear that the UK is a place for legitimate business only, and to ensure we are free of corrupt elites with suspicious wealth, we need to know who owns what. "By getting this first of its kind register up and running at breakneck speed, we are lifting the curtain and cracking down on those criminals attempting to hide their illicitly obtained wealth." 

In reaction to Russia's invasion of Ukraine in February 2022, the Economic Crime (Transparency and Enforcement) Bill included the register. The proposed legislation would require anyone establishing, managing, owning, or exercising control over a company in the UK to confirm their identification with Companies House, a government body.

Property purchased in England, Wales, and Scotland after December 2014 is covered by the register. According to Labour MP Margaret Hodge, the government must take additional measures to combat money laundering. "The government must swiftly put in place an open register of the genuine owners of UK land and property, not simply of those held by businesses," she added. "To truly stem the flows of corrupt riches into our housing market." Anything less would show conclusively how lenient this government is on illegal money.