UK Parliament Committee Criticizes UK's Role as Hub for Illicit Russian Finance
The U.K. Parliament's Foreign Affairs Committee released a report June 30 critical of Britain's role in the global financial system as a "hub for illicit finance," particularly in light of the war in Ukraine. Russian assets are continuously laundered through the U.K. to finance President Vladimir Putin's war, the committee said. London's standing as a magnet for global finance presents a grave national security risk, the committee said. The report assesses "consequences of the complacency of successive Governments towards illicit finance and the adequacy of the current Government's response."
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The committee said the Economic Crime Act, which sets up a register of beneficial ownership of overseas property, is "welcome" but insufficient, doing little to address the root mismatch between the resources of law enforcement and their targets. "We call on the Government to increase substantially funding and expert resourcing for key law enforcement agencies," the report said.
The committee further found the U.K. is "underprepared and under-resourced" to impose its myriad sanctions against Russia. "We recommend that the Government provide the sanctions unit with the necessary additional resources for the duration of the Ukraine crisis as well as working to develop a professional sanctions cadre within the [Foreign, Commonwealth & Development Office]," the report said. The committee also urged the U.K. to set up a trans-Atlantic partnership to stop kleptocracy.