Proposals to deliver the world’s first register of overseas
companies and other legal entities that own property in the UK
have been published as part of the Government’s drive to build a
fair economy.
The UK would be the first country to have a public
register showing the beneficial owners of property controlled by
overseas companies and other legal entities, strengthening the
UK’s position as a world leader in corporate transparency and
anti-corruption.
The register would also list the
beneficial owners of overseas-registered firms involved in
central government procurement exercises.
While the Government welcomes legitimate foreign
investment in the UK, overseas investors in the UK property
market have also included criminals laundering the proceeds of
crime.
Since 2004, law enforcement investigations into
international corruption have identified more than £180m of
property in the UK as the suspected proceeds of corruption, with
75% of those investigated using overseas companies to hide their
real owners. This is a tactic that investigators pursuing high
level money laundering continue to encounter
routinely.
The Government today launched a call for evidence,
asking overseas investors, property and transparency experts for
their opinions on how this register could be delivered. The
Government already requires owners and controllers of UK
companies to be registered with Companies House.
A research project, due to be launched shortly for
the Department for Business, Energy and Industrial Strategy, will
assess the likely impact of the overseas property register on
inward investment and wider corporate transparency.
Business Minister said:
“We are committed to protecting the integrity and
reputation of the UK property market and this register would be a
valuable measure to increase transparency and investor
confidence.
“The extension of transparency requirements, which UK
owners are already subject to, levels the playing field and means
we would know who owns and controls UK property wherever they are
from.
“Today we are inviting the views of overseas
investors, property and transparency experts on how this register
could be delivered.”
Donald Toon, Director for Economic Crime at the
National Crime Agency said:
”Criminals and their money launderers will
always seek to hide the true ownership of assets, including
property, to frustrate investigations and hold onto the profits
of their crimes.
“Greater transparency over the true ownership
and control of UK property held in the name of overseas companies
will make the UK a less attractive place to launder money and
will assist investigators track down and recover the proceeds of
crime.”
Mark Hayward, Chief Executive, National Association
of Estate Agents Propertymark, said:
“This new register will set a gold standard for
transparency and enhance the reputation of the UK property market
as an attractive place to do business. We will be working closely
with our members to help them understand the requirements that
will help shape the world’s first register of its
kind”
The call for evidence is open until 15 May 2017 and
can be viewed and responded to at www.gov.uk/beis.
Notes to editors
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Currently £25m of property is frozen worldwide in
connection with ongoing National Crime Agency international
corruption investigations.
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