In Tit-for-Tat with Russia, UK Pushes New “Dirty Money” Probe

This move comes after Russia’s alleged poisoning of former spy Sergei Skripal and his daughter in Salisbury, United Kingdom. Although Russia denies it was involved in the poisoning, the attempted murder launched a verbal and diplomatic war between Moscow and the West.

Worldwide, countries supportive of the U.K. have expelled over 100 Russian diplomats, with the United States sending 60 of them home while the U.K. showed 23 the door. In retaliation, Russia has announced it will expel the same amount of western diplomats, according to the Associated Press.

British Prime Minister Theresa May also took aim at foreigners who have been buying expensive properties in Great Britain, especially in London. Many of who are Russians.

In a speech accusing Moscow for the poisoning, she stated that there was no place for “serious criminals and corrupt elites” in the country, according to Reuters.

London has become a rumored destination of choice to launder money from overseas crime and corruption “the so-called ‘dirty money,’” said the Chair of the lower house Treasury Committee, Nicky Morgan, who is leading the new investigation.

“Given the threats that face the UK, the effectiveness of the regimes that we use to protect our financial system from misuse have never been more important,” she said.

Last year Transparency International U.K. found properties in London worth US$ 5.8 billion had been bought by individuals with suspicious wealth.

The new push against this kind of foreign money follows the creation of the “unexplained wealth order” in February. These measures target foreign residents who may have suspicious wealth.

Such individuals will be asked to explain where they got their money from and how they purchased their property and if the answer is wrong—the British government will have the right to take the property.

“This landmark moment is a positive statement of intent from law enforcement and sends a clear message to those seeking to launder corrupt wealth through the UK that their assets will no longer be safe here,” Rachel Davies Teka, Transparency International UK’s head of advocacy, said in response to the first issue of an unexplained wealth order in early March.

The U.K. had previously been connected to the Russian Laundromat, a vast money laundering scheme from Russian officials to move billions of dollars uncovered by OCCRP and its partners.