Since 2004, The Department for Business, Energy & Industrial Strategy (BEIS) has launched criminal investigations into more than £180m worth of property real estate suspected of corruption.
The register only covers property in England and Wales and aims to have draft laws published by summer 2018. The public register will require overseas companies that own or buy property in the UK to provide details of their owners. This will make it easier for law enforcement agencies to track funds and take action against criminals laundering money.
London’s property is particularly in the spotlight, as it has (in recent years), attracted numerous foreign buyers, drawn to the luxury penthouses and apartments nestled within its glittering skyline and financial hub.
But with the release of the “Panama Papers” in 2016 it helped shine a bright light on firms and individuals who were using complex structures to base themselves abroad - putting the issue of tax avoidance high on the global agenda.
UK companies must already record details of their beneficial ownership by keeping a register of people with significant control (PSC register). The PSC information is filed at Companies House and is publicly assessable.
The planned register for overseas companies is likely to operate on a similar basis, with an overseas company provided with a unique identifier number (the same as a UK company number) that will enable it to acquire property in England and Wales. Currently, the only publicly available information is the name of the company and its territory of incorporation.
“This world-first register will build on our reputation for corporate transparency as well as helping to create a hostile environment for economic crimes like money-laundering,” said business minister Greg Clark.
A register revealing owners of overseas companies buying property in the UK will be published early 2021.
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