OUR GLOBAL MOVEMENT
February 18, 2022 – New research from Transparency International UK highlights Britain’s continued role as a ‘laundromat’ for suspicious wealth from Russia.
Transparency International UK has been collating information on questionable funds from around the world being invested in UK property since 2016. This figure now stands at £6.7 billion.
Of this total, £1.5 billion worth of property was bought by Russians accused of corruption or links to the Kremlin.
Nearly £430 million worth (28.3% by value) is in the City of Westminster, while £283 million (18.8%) is in Kensington and Chelsea. A more detailed breakdown can be found below.
Analysis of how this £1.5 billion is owned reveals £830 million worth (55% by value) is held by companies in Britain’s Overseas Territories and Crown Dependencies. The secrecy provided by these offshore financial centres is often used by those seeking to hide their ownership of assets.
In addition, we have identified 2,189 companies registered in the UK and its Overseas Territories and Crown Dependencies used in 48 Russian money laundering and corruption cases. These cases involved more than £82 billion worth of funds diverted by rigged procurement, bribery, embezzlement and the unlawful acquisition of state assets.
Duncan Hames, Director of Policy at Transparency International UK, said:
“These figures highlight Britain’s continued role as a global hub for suspicious and illicit wealth, from Russia and elsewhere. We’ve found hundreds of properties together worth nearly £7 billion bought with suspect funds, but the sheer volume of assets held here by opaque offshore companies means this is certainly just the tip of the iceberg. Government plans to force overseas companies holding property here to reveal their owners are long overdue. Until the law is changed to do this, even those targeted by sanctions will continue to be able to hide their wealth here."
New analysis of hundreds of major corruption and associated money laundering cases also reveals how the UK continues to facilitate global corruption, especially from Russia and the former Soviet Union:
Country | Corruption cases with UK nexus |
Russia | 64 |
Ukraine | 51 |
China | 45 |
Nigeria | 35 |
Azerbaijan | 28 |
Kazakhstan | 18 |
Indonesia | 16 |
Egypt | 15 |
Brazil | 14 |
Uzbekistan | 13 |
We define ‘UK nexus’ as a case that involves one or more of the following:
- The involvement of UK-based professional services, such as banks, law firms, and accountants.
- Money moving through UK-based companies.
- Money moving through shell companies in the UK's Overseas Territories or Crown Dependencies
- Money invested in UK assets such as property.
Notes to editors:
Borough breakdown of the £1.5 billion in property by value:
Borough | Value of Russian owned property | Proportion of Value |
CITY OF WESTMINSTER | £ 428,256,207.00 | 28.38% |
KENSINGTON AND CHELSEA | £ 283,695,678.00 | 18.80% |
CAMDEN | £ 165,000,000.00 | 10.94% |
WOKINGHAM | £ 146,250,000.00 | 9.69% |
CITY OF LONDON | £ 111,374,602.00 | 7.38% |
OTHER | £ 374,330,321.00 | 24.80% |
This data was last updated in June 2021.
The UK’s Overseas Territories and Crown Dependencies have all committed to introducing public registers of beneficial ownership which reveal the true owners of companies incorporated there.
Gibraltar has already introduced public access to its beneficial ownership register, which is behind a paywall. Others, including the British Virgin Islands, have moved very slowly and offered only vague timelines as to when they will make changes. More here - https://www.transparency.org.uk/corporate-secrecy-reform-overseas-territories-crown-dependencies-latest
