The United Kingdom government is planning to introduce stringent measures that would force offshore companies to disclose the ultimate owners of the properties they acquire in the country.
The Guardian reported that under the proposals, foreign companies will come into close scrutiny particularly those that have billion-pound assets in the U.K. The move will come in line with the new rules wherein U.K. companies are required to declare a beneficial ownership beginning June.
This U.K. government's measure come after the controversial Panama Papers which leaked information that has shaken the world. The documents from law firm Mossack Fonseca reveal how the wealthy laundered money and avoided taxes by hiding their money away through shell corporations.
These offshore companies used their money on purchasing luxury real estate properties, which consequently driven housing prices to sky-high levels in cities like London and Miami, reports say.
According to the proposal, as reported by The Guardian, the Department for Business, Innovation and Skills said that real estate provides convenience in stashing illicit funds among criminal organizations and corrupt individuals. Add that to the fact that the property market in the country is an attractive one for foreign investors because its political and business climates are stable.
"The high values of property in London in particular presents an opportunity for criminals to launder considerable sums of money in one transaction," BIS consultation document said.
Citing a report from The Times, Politics Home said this transparency plan is expected to be unveiled by Prime Minister David Cameron next month during the anti-corruption summit.
Home Office is also set to unveil plans on how money laundering and terrorist financing can be tackled, the publication reported. Home Secretary Theresa May said that those who are suspected to be laundering money will be given an "unexplained wealth order" and may have their assets seized if proven guilty.
