Offshore trust loophole conceals wealth of oligarchs
- Treasury opposes revealing trust beneficiaries without consultation
- Surprise decision made following implementation of transparency rules
- Offshore companies with property in England and Wales required to disclose ultimate owner
Criminals, kleptocrats, and oligarchs may now have the ability to remain hidden from public scrutiny as ministers have delayed efforts to close a loophole that enables them to conceal their wealth.
This surprising decision comes after the implementation of transparency rules, which require offshore companies with property in England and Wales to disclose the identity of their ultimate owner on a public register of overseas entities.
The UK has been at the forefront of making such registers available through Companies House to combat organized crime and money laundering.
Furthermore, the government has committed to addressing the use of shell or “front” companies for financial crime and terrorism by subjecting them to increased scrutiny.
However, the Treasury has informed peers that it is against revealing beneficiaries of secretive trusts without proper consultation.
Loophole: The Treasury has told peers it is against identifying beneficiaries of secretive trusts without a consultation
Trusts allow property owners, known as beneficiaries, to hide behind trustees who manage the property on their behalf. The government’s decision comes from concerns about potential legal challenges regarding individuals’ right to privacy.
This decision follows a ruling from the European Court of Justice in favor of privacy rights over transparency. The ruling was based on a case brought forward by Patrick Hansen, a Luxembourg executive whose private jet operator had several planes grounded due to sanctions against oligarchs.
However, former minister Lord Agnew argues, “The notion that we can combat illicit finance without proper ownership transparency is absurd.”
Lord Agnew is proposing an amendment to the Economic Crime Bill to close this significant loophole,
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
