The United Kingdom Government has said it would open a public register for foreign property owners in order to prevent criminals from turning UK property market into a money laundering sector.
The government will require foreign companies with property on its soil to list their beneficial owners or the people who ultimately control and profit from said properties, on a special public register in an attempt to prevent criminals from using UK properties to launder money, the government said in a statement on Monday.
According to the Business Minister, Richard Harrington, “For the first time, foreign companies owning UK properties will be required to reveal their ultimate owners on the world’s first public register of overseas entities’ beneficial ownership.
The register forms part of a wider crackdown on criminals laundering their dirty money in the UK and the new information it reveals will make it easier for law enforcement agencies to seize criminal funds,” the statement said.
According to the statement, individuals who will attempt to sell or rent properties without revealing the ultimate owner might face up to five years in jail and an unlimited fine.
“New data also released today shows nearly three-quarters of those surveyed in the UK property market agree that this new register will lead to an increase in transparency and will reduce the potential for illegal activity,” Harrington added.
The register will be established within the framework of the UK Criminal Finances Act adopted in 2017 and is expected to become operational by 2021.
The register forms part of a wider crackdown on criminals laundering their dirty money in the UK and the new information it reveals will make it easier for law enforcement agencies to seize criminal funds.
The penalties, Harrington said, include:
• A ban on any foreign entity selling or leasing property without first publicly declaring its beneficial owner; an individual found to have committed this offence could face up to 5 years in jail and an unlimited fine;
• Individuals who fail to register overseas entities when instructed face up two years in jail and an unlimited fine;
• Individuals who knowingly try and deceive the register by providing false information face up 2 years in jail and an unlimited fine;
• New data also released today shows nearly three-quarters of those surveyed in the UK property market agree that this new register will lead to an increase in transparency and will reduce the potential for illegal activity.
Source: Punch
