*LONDON: Frontmen who help wealthy investors from Russia and other statesuse foreign shell companies to hide the ownership of luxury Londonproperties face up to two years in jail and unlimited fines, Britain’sgovernment said on Thursday.*
The punishments will be included in draft laws to be passed in the summerthat will compel foreign companies which own or buy property to disclosetheir ultimate owners in a bid to crack down on money-laundering.
Investors from Russia, China and the Middle East have poured billions intoLondon, buying everything from luxury properties to entire companies, butthe origin of some of those funds has been questioned by transparencycampaigners.
London property especially has attracted foreign buyers thanks to its mixof top-end apartments, luxury penthouses and gleaming skyscrapers alongsidecorporations who use the city as global hub.
Although the new laws are not specifically directed at Russia, the Britishcapital has been dubbed “Londongrad” due to the large amounts of Russianmoney that have poured in since the collapse of the Soviet Union in 1991.
Some British lawmakers have urged Prime Minister Theresa May to freeze theprivate assets of senior members in Russian President Vladimir Putin’scircle in retaliation for the poisoning of a former double agent in Englandtwo weeks ago.
“The UK is taking a leading role in the global fight against corruption,including cracking down on the use of shell companies to launder dirtymoney by buying up some of London’s prime real estate,” Andrew Griffiths, ajunior business minister said in a statement.
“Our public register will ensure we know who owns UK property wherever theyare from and will help authorities come down hard on frontmen seeking toconceal their paymasters’ true identities.”
More than 180 million pounds($254 million) worth of property in Britain hasbeen brought under criminal investigation as the suspected proceeds ofcorruption since 2004, and more than 75 percent of properties currentlyunder investigation use off-shore corporate secrecy, the statement said.Agencies