The owners of 53,000 properties still unknown

The owners of almost 52,000 properties are still unknown, according to the analysis in a report by Transparency International.

Almost 52,000 UK properties are still owned anonymously despite the creation of a register of overseas owners, research from a campaign group reveals today.

According to Transparency International, analysis of the Register of Overseas Entities (ROE), set up under the Economic Crime (Transparency and Enforcement Act), shows almost half of the companies required to declare their ownership have failed to do so.

The report, Through the Keyhole, states that more than 18,000 offshore companies which between them hold almost 52,000 properties in England and Wales, have either ignored the law altogether or submitted information which makes it impossible for the public to find out their owners. This includes firms reportedly owned by kleptocrats, oligarchs and individuals subject to sanctions, Transparency International states. 

A snapshot of the register from 1 February shows:
    • Around 14,500 offshore companies listed as owning property in England and Wales by HM Land Registry could not be identified on the ROE.
    • More than 3,000 firms listed other anonymous companies (which were not themselves on the ROE) in secrecy jurisdictions such as the British Virgin Islands as their beneficial owners.
    • More than 4,000 companies indicate they are held by trust arrangements. These opaque structures make it difficult to find out who is really behind them, Transparency International said. 
    • 12% of all companies that have filed information (2,358) claim to have no beneficial owners. 
Duncan Hames, director of policy at Transparency International UK, said:

“While the register is starting to serve its intended purpose, our analysis reveals there are far too many companies that could be trying to skirt the rules, not knowing they exist, or ignoring them altogether.

“Without action from parliament to close loopholes in the law and active enforcement from Companies House, this promising reform will fall short of its aim in providing fewer places for corrupt wealth to hide.”

The group is calling for legislation to require Companies House to publish information on all parties to trusts controlling overseas firms holding UK property.

It also urged Companies House to pursue overseas companies that have submitted non-compliant filings and report the professional service providers responsible for submitting obviously non-compliant information to anti-money laundering regulators.

 

Kindly shared by The Law Society Gazette

Main article photo courtesy of Pixabay