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Patch holes in property register, implement it quickly to halt US$115 billion in yearly money laundering, UK government told

  • Illicit funds help sustain Britain’s inflated property market, as shown in BBC drama McMafia

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Supporters of the proposed register fear it may be delayed by the political paralysis induced by the Brexit crisis. Photo: EPA-EFE

Proposals for the first register of foreign-owned property aimed at preventing “McMafia-style” money laundering should be put in practice urgently and reinforced to plug potential loopholes, the UK government has been told.

Draft legislation contains insufficient verification checks to deter criminals from submitting false information and could allow those exploiting trusts to circumvent controls, MPs and peers have said.

More than £90 billion (US$114.7 billion) is estimated to be laundered illegally through the UK each year, according to the all-party parliamentary committee scrutinising the registration of overseas entities bill.

Illicit funds help sustain Britain’s inflated property market through the purchase of homes that are frequently left unoccupied, emptying the wealthier parts of London of residents.

The issue was highlighted last year in the BBC drama McMafia, based on the book by Misha Glenny, which examined the penetration of western economies by organised Russian criminal gangs.

The proposed register could have a radical impact on house sales in the capital as well as other parts of the country, but its supporters fear it may be delayed by the political paralysis induced by the Brexit crisis.

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