![]() A UWO places the burden of proof on the subject of the order to explain the underlying source of wealth used to purchase the assets under investigation. ![]() They are an investigative tool designed to enable law enforcement to identify and seize property suspected to have been bought with criminal funds. This will be determined by secondary legislation at a date decided by the Secretary of State and means that these transitional provisions shall remain in force for the time being. Although this provision was included in the Act (section 41), it is noteworthy that the Government has not indicated when the new regime will formally begin. The House of Lords sought to redress this by including a requirement for foreign owners to disclose beneficial ownership if they sold UK property between 28 February 2022 (four days after Russia’s invasion of Ukraine) and the end of the six-month transition period. However, concerns remain amongst lawmakers as to whether this length of time could still render the register ineffective. The initial transition period of 18 months was also curtailed to six to provide companies and the registrar sufficient time to put this new register in place without providing so much time that beneficial owners would simply dispose of relevant property during the transition period. Any person can apply to see the register, but it is worth noting that certain personal information will not be included for public inspection.Ĭritics of the Bill were concerned that a provision permitting exemptions in the interests of the “economic well-being of the UK” would open the door to the lobbying of Government on behalf of oligarchs and other influential owners. The regime will apply retrospectively to property acquired from January 1999 for property in England and Wales and from December 2014 in Scotland. It is hoped this will discourage illicitly acquired wealth being used to finance acquisition of UK property. ![]() The register, which will include details of beneficial owners of overseas entities, intends to make it harder for individuals to conceal ownership behind complex, often offshore corporate structures. The Secretary of State is entitled to require any overseas entity holding certain property interests to apply for registration on six months’ notice. Part 1 of the Act introduces a requirement for the registrar of companies to set up a register of “Overseas Entities”, defined as legal entities “ governed by the law of a country or territory outside the UK”. ![]() The passing of the act has flown largely under the radar in comparison to the sanctioning of oligarchs, however, has been described by some commentators as one of the most significant legislative developments in recent years. This Bill received Royal Assent on 14 March and became the Economic Crime (Transparency and Enforcement) Act 2022 (the “ Act”). The Economic Crime (Enforcement and Transparency) Bill (the “ Bill”) was put forward as a further tool to combat laundered money entering the UK, in particular from Russia. Following the Russian invasion of Ukraine, sanctions imposed by the UK and other jurisdictions, largely against high-profile Russian individuals and companies, have been firmly in the headlines.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |