Dirty Russian money still flowing into City ‘stains’ UK

RUSSIAN money is continuing to flow into the City and oligarchs who “stain” Britain’s reputation should be prosecuted, a group of influential MPS said.

A report by the Commons foreign affairs committee has concluded that financial sanctions against associates of Vladimir Putin do not go far enough and ministers must consider if prosecutions can be brought and criminal cases built.

The report also criticised the Government for being too soft on tackling the flow of dirty money through the City of London, saying its rhetoric of “clamping down” has not been matched with appropriate action.

It added that the Government’s lack of willingness to bring forward legislation to tackle illicit finance has directly contributed to the UK’S status as a “safe haven for corrupt wealth”.

Tom Tugendhat, Tory MP and chairman of the committee, said: “For far too long successive governments have allowed malign actors and kleptocrats to wash their dirty money in the London ‘laundromat’.

“Complacency has left the door open to corrupt wealth taking root and morally bankrupt billionaires using the UK as a safe deposit box.”

Since the early 2000s, many Londonbased law firms, consultants and PR businesses – which the committee have called “enablers” – have netted handsome paydays from working with Russian companies.

Mr Tugendhat added: “While the Economic Crime Act is welcome, it is also long overdue. Current legislation does not go far enough and the Government’s rhetoric is not matched by reality. Sanctions against Russian individuals and businesses can only achieve so much.

“We need much more fundamental – and long-lasting – legislative changes to weed out the scourge of dirty money ... [which] is a stain on our reputation.”

The report urged ministers to publish a review of the Tier 1 Investor visa scheme, known as “golden visas”.