Roman Abramovich at a ceremony in Istanbul, Turkey, July 22 2022. Picture: UMIT BEKTAS/REUTERS
About 5,500 companies, or nearly 30% of the more than 19,700 companies that did register with Companies House, didn’t identify any individual owners, Reuters found. Many of those disclosed as beneficial owners entities in countries known for business secrecy, such as the British Virgin Islands or Panama. Government guidance defines a beneficial owner as either an individual or an entity, such as a corporation or trustee.
Britain’s experience highlights the challenges for governments trying to increase transparency in an effort to combat the flow of illicit funds. Companies that fail to make accurate disclosures could face restrictions over selling their property, fines of up to £2,500 a day and individuals can be jailed for up to five years.
London’s luxury property market has resembled “a giant washing machine” for overseas laundered money in recent decades, said Jonathan Benton, former head of the UK’s National Crime Agency’s international corruption unit. Successive British governments have received warnings about potential flaws since plans to introduce the register were announced seven years ago.
Other high-profile Russians who have been linked to UK property didn’t appear on the register as of Wednesday morning, including those sanctioned by Britain for connections to Putin and his government.