UK Moves to Curb ‘Dirty Money’ for War in Ukraine

In the latest rebuke to Russian President Vladimir Putin for invading Ukraine, British Prime Minister Boris Johnson’s government plans to pass legislation designed to curb laundering of “dirty money” that has been used to support the war, The Financial Times reported.

In a post on LinkedIn, Foreign Secretary Liz Truss said the United Kingdom stands with the people of Ukraine, its democracy, and will continue to support them economically, politically and defensively.

“There will be nowhere left to hide for the super-rich linked to Putin’s regime,” she wrote. “More kleptocrats will be hit with restrictions in the coming weeks. Nothing is off the table.”

Number 10 Downing Street, the home and office of the British Prime Minister, will introduce an economic crime bill to require overseas companies that control property and land in the U.K. to register with the government.

The measure, which was originally introduced in 2018, was crafted to stop the 100 billion pounds ($134 billion) in illegal financing the U.K’s Crime Agency estimates is channeled through the country annually.

Lawmakers put the proposal on hold as anti-corruption proponents alleged London has become a laundromat for illicit financing.

If enacted, foreign investors that fail to comply could face jail time and be required to sell their interests.

Truss’ announcement came as Ukraine revoked the licenses and liquidated the assets of two major Russian banks Sberbank and VEB.

Read more: Ukraine Revokes Licenses of Russian Banks Sberbank, VEB

Aside from dealing with banking sanctions from United States, European Union and British leaders, Russia’s financial services were further handicapped by the National Bank of Ukraine’s action.

Sberbank is the largest financial institution in Russia, and VEB finances the state’s national economic development. The sanctions also include subsidiaries of the banks including JSC International Reserve Bank, which is 100% owned by Sberbank, and PJSC Joint Stock Commercial Industrial Investment Bank.