Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what steps they are taking to further reduce the time given for Russian oligarchs to register UK property under the Economic Crime (Transparency and Enforcement) Bill.

The Government brought forward amendments to the Economic Crime (Transparency and Enforcement) Bill to shorten the deadline for overseas companies already owning land in England and Wales, and Scotland, to register their beneficial owners from 18 months to 6 months. This will help crack down on money laundering through UK property, whilst giving people who hold their property in overseas entities for legitimate reasons appropriate time to comply with the new requirements. The Bill has now received Royal Assent.

The vast majority of the beneficial owners of entities holding properties on the register will be entirely law-abiding. A 6-month transition period strikes a balance in allowing for the free enjoyment of property and maintaining the UK’s reputation as a stable investment environment whilst ensuring property owners register their beneficial owners.

We will give owners six months to register, because if they do not comply in time their property rights will be affected. The Government does not interfere with individuals’ rights lightly and this interference could not have reasonably been expected when such rights were acquired. It is important to remember that the majority of properties will be held via overseas entities by entirely law-abiding people.

The new register is a measure designed to inform investigatory work by the National Crime Agency and others, and will help clean up our property market in the long-term. It is not a necessary precondition of taking swift action to sanction individuals now.