It's a small step, an announcement – after all. The British government wants to remove so-called "golden visas". So far, anyone who invested two million pounds in Great Britain could acquire a residence permit – an entitlement to stay in the country and bring the family over. This visa is temporary but could be converted to an unlimited title.
The Labor government introduced this rule in 2008 to attract investment to the country. Between 2008 and 2015, 6,312 of these visas were issued, about 700 to Russian citizens. In 2015, the rules were tightened. But the uncertainty remains: who was brought into the country with which investments? A corresponding investigation is ongoing. The report is due to be presented soon.
Government responds to allegations
From 2015, investors were required to provide proof of a UK account and people were subject to criminal record checks. In the coming week, the Ministry of the Interior apparently wants to introduce a law that provides for the visa for investors to be completely abolished. The government is responding to allegations that it is not doing enough to combat money laundering and promote transparency in investments in the UK.
Example: Investors invest money through overseas companies. "This is a critical point. So much property in the UK is owned by XY company in Belize or the British Virgin Islands. Who benefits? No one knows," says Tom Keatinge, director of think tank Rusi's White Collar Crime Institute. Appropriate rules to change this should not be presented until autumn.
Just like a reform of the commercial register. So far, anyone can enter a company there under any fantasy name. The names are not checked. "It would be important in a new legislative proposal to design the commercial register in such a way that the data is checked," said Keatinge. So far, the law does not provide for this.
US fears loopholes
Seizing Russian money in London is not that easy. There are city tours that pass by the magnificent mansions of Russian citizens. But a lot of money should not be visible at all, which the USA has clearly criticized. The government in Washington fears loopholes in London should there be further sanctions.
Transparency International estimates that Russians with ties to the Kremlin or to launder money have invested nearly €1.8 billion in the UK. 28 percent of them in the heart of power – in real estate in the Westminister district. More than 2000 companies involved in corruption and money laundering are affected – with an investment volume of more than 96 billion euros.
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