Thursday December 9th 2021 12:28 p.m.
Britain needs to create a hostile environment for the world’s kleptocrats to improve its reputation as a hotbed of dirty money, argued Chatham House in a report released earlier this week.
The think tank called on the government to take new measures to curb kleptocracy and corruption.
These include removing loopholes in the law, creating transparency in public institutions, imposing anti-corruption sanctions on post-Soviet elites and prosecuting British professionals who facilitate money laundering by kleptocrats.
In its latest report, which focuses on corruption, dirty money and hostile political agendas – “The UK’s Kleptocracy Problem” – the think tank describes the country as a playground for post-Soviet elites who use British services to protect their interests and their wealth to spread and influence national institutions.
It argues that Britain has failed to prevent kleptocrats from buying influence and to undermine regulations and laws that also need to be reformed.
Chatham House believes that the situation is materially damaging to the rule of law and the UK’s stated role as an opponent of international corruption.
She specifically points to Westminster and suggests that the ruling Conservative Party could be open to the influence of wealthy financiers who have come from post-Soviet kleptocracies and are loyal to those regimes.
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It also notes that wealthy kleptocrats use charitable donations to universities and charities to improve their reputation – with donations being secretly processed with insufficient care.
In addition to concerns from oligarchs and ultra-wealthy investors influencing institutions, Chatham House highlights the UK’s National Crime Agency for failing to investigate and enforce money laundering laws, resulting in flawed court rulings with expensive lawyers serving the Routinely defeated regulators
The think tank also criticizes the UK’s reliance on private sector professionals to carry out anti-money laundering controls.
It describes the worst of both worlds, where banks too often report suspicious activity and backlog reports for the UK authorities, while non-financial providers often under-reporting and failing to exercise due diligence.
The report also highlights that wealthy elites are using libel suits, quasi-defamation cases and public relations agents against journalists and researchers who criticize the kleptocrats operating in the country.
Chatham House argues that Britain has a “long way to go” in dealing with the risks of serving the post-Soviet elites and suspicious capital.
It said: “The British government must enforce its laws; Creating better oversight of regulated sectors; crackdown on those who have been shown to facilitate money laundering; stop issuing visas, residence permits and citizenship to people suspected of widespread corruption; and ensure that journalists and researchers are free to report on the actions of these people. “
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