Russia sanctions: “Londongrad” as a loophole? | tagesschau.de

In the UK, many Russians launder their money. Effective sanctions against Russia are therefore hardly possible, according to the United States. But the Conservative Party apparently has little interest in taking action against corruption.

The British government likes to be adamant when it comes to Russia and preventing an invasion of Ukraine. When Foreign Minister Liz Truss visited the British troops in Estonia at the end of last year, she had herself photographed in the moving tank, just like the then Prime Minister Margaret Thatcher, also known as the Iron Lady, years before her.

Despite sending troops to strengthen NATO’s eastern flank and despite supplying arms to Ukraine, Britain has also come under criticism. It’s about black money, money laundering and Russian oligarchs in London. Warnings were sent from Washington to 10 Downing Street: Ukraine sanctions would remain ineffective because Putin’s money had long since reached the best parts of London.

Serious allegations from the Labor Party

“London is the destination of choice for all kleptocrats,” says Labor foreign policy spokesman David Lammy. “There are companies here that help corrupt elites hide their ill-gotten gains.”

Labor calls for stricter laws, transparency rules and a strengthening of the investigative authorities. The requirement is not new. As early as 2018, a final report by a parliamentary committee of inquiry stated that the government must end the flow of dirty money into the United Kingdom.

Little government effort so far

But nothing happened: “Because of Brexit and a lack of interest in the government, there was no energy to tackle the issue,” says Tom Keatinge, director of the Center for White Collar Crime at the Royal United Services Institute. From his point of view, there is a large majority of MPs from all parliamentary groups who support the relevant laws.

In the Labor Party, the government’s unwillingness to take action against money launderers is seen as a problem for the Conservative Party. The Tories are said to have received around six million euros from supporters in Russia over the past ten years.

Secretary of State Truss wants to act quickly. She announced new rules on sanctions and promised in the lower house that those with ties to the Kremlin will have no place to hide – which caused laughter from MPs because the martial announcement is at odds with reality

Many company shares obscured

Just figuring out who owns what is pretty difficult in the UK. Company shares or real estate are registered in overseas companies. A follow-up is hardly possible. In addition, although the commercial register is transparent for everyone to see, “the authority that keeps the commercial register has no way of checking all the information. In some cases, garbage is put together transparently,” says Keatinge. “That means companies are registered in the name of Mickey Mouse or a two-year-old girl.

Experts are calling for an authority that can track entries in the commercial register, a register for overseas companies and a strengthening of the National Crime Agency. The proposals have long been in the drawer, says Keatinge. They just have to finally be tabled in Parliament. By the end of 2022, Liz Truss has promised, this should happen. Probably too late to be able to enforce sanctions even more effectively.