REUTERS
The British parliament has expressed concern that large Russian proceeds of corruption are being laundered through the London property market via the use of anonymous offshore companies and plans to address the issue, according to Russia's TV Channel Dozhd at tvrain.ru.
The parliament will discuss this issue in connection with the recent screening of From Russia with Cash on Channel 4 when Russian "corrupt officials" got into contact with London property agents to strike a covert deal on property in elite areas in London.
"This House recommends that corporate transparency become a Land Registry requirement so that any foreign company intending to hold a property title in the UK is held to the same standards of transparency required of UK registered companies, so preventing London or other locations from becoming a safe haven for the corrupt," Early Day Motion 275 posted on the website of the British parliament reads.
According to a property agent, foreign investors account for up to 80% of all acquisitions of luxury property in London, and 50-60% of these transactions are carried out "with a certain degree of anonymity."
Media outlet bne IntelliNews wrote late in March 2015 that "there is a dark side to the Russians' love of London: since the 1970s, London has attracted an estimated £133 billion of 'dark' money and a big chunk of that is Russian cash looking for a new home."
"There is strong evidence that a considerable chunk of the UK's £133 billion of hidden capital inflows is related to Russian capital flight," bne IntelliNews quotes Oliver Harvey and Robin Winkler, authors of a Deutsche Bank report, "Dark matter: the hidden capital flows that drive G10 exchange rates", published in March, as saying.
They add that London has become the preferred destination for money launderers due to its extremely light reporting touch on many transactions. "Inflows have accelerated in recent years, tracking at around £1 billion per month since 2010…"