Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to tackle the flow of Russian money and assets through the UK economy.

This question was answered on 30th March 2022
Money obtained through corruption or criminality, including that linked to Russia is not welcome in the UK, and the Government is taking concerted action to combat the threat of illicit finance from source to destination.

In recent years, the Government published a landmark public-private partnership Economic Crime Plan. The Plan outlines a comprehensive national response to economic crime and sets out 52 actions being taken by both the public and private sectors to ensure the UK cannot be abused for economic crime. The private and public sector is making measurable progress in delivering the Economic Crime Plan and are on course to deliver 49 of the 52 actions set out in the Plan.

The Government is also bringing forward significant investment to tackle economic crime; the combination of last year’s Spending Review settlement and private sector contributions through the Economic Crime (AML) Levy will provide economic crime funding totalling around £400 million over the next three years.

Most recently, following the Prime Minister’s announcement in February, the Government has brought forward the Economic Crime (Transparency and Enforcement) Act to crack down further on dirty money and corrupt elites in the UK. The Act:

• Introduces a “Register of Overseas Entities Beneficial Ownership of UK property” to tackle foreign criminals using UK property to launder money.
• Reforms our Unexplained Wealth Orders regime, to remove key barriers and help target more corrupt elites.
• Strengthens the Treasury’s ability to take action against sanctions breaches.

This is not all. The Government is working at pace to introduce a new dedicated Kleptocracy cell in the National Crime Agency. This will grow operational capability to combat serious and organised crime targeting corrupt elites through their hidden UK assets hidden; targeting the professional enablers of these corrupt elites; and supporting cross-government sanctions delivery and enforcement.

Finally, the Government has announced published details of further upcoming legislation to clamp down on money-laundering and illicit finance. This will include fundamental reform of Companies House, enhanced information sharing powers and new powers to seize crypto assets finance.