Some 40% of properties owned by anonymous firms based in tax havens are in the UK capital, analysis from international NGO Global Witness has found.<\/p>\n
This has served to push prices up by \u00a311,000 in London, according to ani-money laundering firm SmartSearch.<\/p>\n
More than 87,000 properties in England and Wales are now owned by anonymous firms based in tax havens, with an estimated collective value exceeding \u00a3100 billion.<\/p>\n
Since 2016 alone, over \u00a311 billion in suspicious wealth has flowed into UK real estate\u2014more than half via shell companies registered in British Overseas Territories.<\/p>\n
Phil Cotter, chief executive of SmartSearch said: \u201cThe UK property market is one of the most vulnerable sectors to financial crime, because of the high values involved and the ability for companies to buy, own, and sell property with minimal scrutiny.<\/p>\n
\u201cThis allows criminals to exploit loopholes\u2014like purchasing through anonymous shell companies\u2014to clean their money. These buyers often pay inflated prices to secure quick deals, which in turn distorts the entire market.<\/p>\n
\u201cIn some prime areas of London, dirty money has inflated prices by up to 20%, pushing first-time buyers and local families out. In boroughs like Westminster and Kensington & Chelsea, offshore buyers have created so-called \u2018lights-out streets\u2019, where luxury homes sit empty while local communities suffer.\u201d<\/p>\n
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Estate agents are the first line of defence in stopping property-related money laundering. But SmartSearch warns that many are falling short of their legal obligations.<\/p>\n
Recently, nearly 200 estate agents were fined over \u00a31 million for breaches of anti-money laundering (AML) regulations\u2014mostly for trading while unregistered.<\/p>\n
Cotter added: \u201cIf estate agents don\u2019t take their anti-money laundering responsibilities seriously, the UK property market will remain a magnet for dirty money.<\/p>\n
\u201cWith thousands of agents still unregistered or failing to carry out even basic checks, we\u2019re allowing criminals to distort the market\u2014and its ordinary people who are paying the price.<\/p>\n
\u201cWe recognise the pressures estate agents are under, which is why we\u2019re committed to helping them navigate AML regulations and protect all involved.<\/p>\n
\u201cThese regulations are not a burden, but a vital tool to stop criminals from distorting our market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Some 40% of properties owned by anonymous firms based in tax havens are in the UK capital, analysis from international NGO Global Witness has found. This has served to push prices up by \u00a311,000 in London, according to ani-money laundering firm SmartSearch. More than 87,000 properties in England and Wales are now owned by anonymous […]<\/p>\n","protected":false},"author":1,"featured_media":3000,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n