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London’s mayor Sadiq Khan calls for register of foreign-owned property

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On Friday, November 29, 2019, luxury residential townhouses overlook Regents Park, London. Nationwide Building Society says that in November the U.K. saw its highest house price growth in over a year.

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London’s Mayor, The Mayor of London, has asked for an international property registry in order to curb money laundering and counter the threat of Russian sanctions.

Sadiq Khan claimed that there was insufficient transparency regarding property ownership in Britain, which allowed Russian President Vladimir Putin’s aides to conceal billions of dollars in undeclared amounts in the capital as well as across the country.

A register was to be in operation by 2021, according to the government. Khan stated that five years later, no legislation had been passed.

“The slow pace of progress on this issue has been bitterly disappointing – and it will prevent the government acting on their tough talk about further sanctions if they are imposed on Putin’s regime,” Khan said.

The mayor noted that the opaqueness of the current system could be aiding offences such as tax evasion and money laundering, as well as hiding the assets of those targeted by economic sanctions.

The U.K. is threatening tough sanctions in response to the announcement. Russia invades UkraineForeign Secretary Liz Truss warned that any oligarchs who have links to the Kremlin will have no place to hide.

A recent cross-party report of members of parliament has found that Britain’s law enforcement regime does not work. “up to the job”It is designed to prevent money laundering and fraud from entering its financial systems.

Foreign property ownership is on the rise

The amount of illicit and undeclared money invested in Britain is notoriously hard to track. 

Khan stated that, while some properties were owned by Putin’s aides, it was not possible to determine who the owners of thousands more. The creation of a register could make it much easier to find the owner of property, which are often held in secret by holding companies.

Khan explained that for too long, ministers have been ignoring the fact that our capital is being used as a safe harbour for corrupt funds. This has a detrimental impact on both transparency internationally and on local housing markets.

Currently nearly 250,000 properties in England and Wales are registered with overseas-based buyers — up from fewer than 88,000 in 2010 — with London accounting for almost one-third.

Many of these properties remain empty at a time in which Britons face rising property costs and high rents.

Khan said, “The truth is London property plays a key role in hiding illicit funds from all over the globe. This also means that many properties are left vacant at a moment when many Londoners struggle to afford to purchase or rent a home.”

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