London Daily

Focus on the big picture.
Monday, Jun 02, 2025

Ministers accused of failing to stem flow of Russian ‘dirty money’ into UK

Ministers accused of failing to stem flow of Russian ‘dirty money’ into UK

Anti-corruption activists criticise government inaction in face of years of Kremlin provocation
Britain’s efforts to halt the flow of Russian “dirty money” into the UK have been called into question in the aftermath of a threat by the foreign secretary, Liz Truss, to hit Kremlin-linked oligarchs with economic sanctions if Ukraine is attacked.

Labour and anti-corruption campaigners this week accused the government of failing to curtail Russian wealth and influence in Britain, despite years of provocative actions from the Kremlin.

“We’ve seen Russia engage in assassinations and human rights abuses, annexations and invasions – but it has taken 100,000 Russian troops at the border to push Britain towards a change of policy,” said James Nixey, a director at the Chatham House thinktank, which recently published a paper on the UK’s kleptocracy problem.

Truss would not spell out who might be targeted, partly for legal reasons, but she told MPs it could include “those who own or control” companies that have economic or strategic significance to the Russian state.

Roman Borisovich, an anti-corruption campaigner, who runs “kleptocracy tours” highlighting Russian oligarch-owned properties in London, said Truss’s threat sent out the opposite signal. Because sanctions would come only in the event of an invasion, the implied message was, he said, “play nice, you are welcome to come with your stolen loot”.

As fortunes were made following the fall of the Soviet Union, Russian elites, who owe their wealth to an all-powerful Kremlin, have been eager to move money from home. So vast is the flight of capital it has been estimated that Russians hold as much as $1tn in wealth abroad, according to the Atlantic Council thinktank.

Transparency International, an anti-corruption watchdog, believes that 150 properties, mostly luxury mansions in Britain worth an estimated £1.5bn, are owned by Kremlin-linked Russians. More may be held by offshore companies, whose true ownership is hard to determine.

Politicians have benefited. Russian-born donors or individuals with business links to Russia have given nearly £2m to either the Conservative party or individual constituency associations since Boris Johnson took power in July 2019, according to Electoral Commission figures.

Checks were minimal in some cases. Seven hundred wealthy Russians were among those allowed to enter the UK on tier 1 investor visas between 2008 and 2015, a period when no state checks were carried out. All tier 1 visas granted in that period are now subject to a Home Office national security review, says the NGO Spotlight on Corruption.

Former insiders – from policing and Whitehall – complain about a lack of resources and, by implication, political will. “Proving the illicit nature of the funds often needs information from the source country, very hard in some cases,” said one. “The subjects are rich and will employ the legal system of this country to its fullest degree.”

Too many agencies are involved, a former senior security official added. “The British state has not put enough effort and money in tackling fraud across the board – illegal economic activity, dirty money. It’s too spread out between the National Crime Agency, the Serious Fraud Office, City of London police and even local forces.”

A week ago, Theodore Agnew, a former Lords Treasury minister, said one of the reasons for his resignation was that a proposed economic crime bill had been “foolishly rejected” for the next Queen’s speech by business managers. On Wednesday, in a U-turn, Johnson told MPs it would be put on the list.

“Contrary to some of the myths that are peddled, this government have come down very hard on dirty money from Russia and everywhere else,” the prime minister added, and highlighted recently introduced anti-corruption measures, such as unexplained wealth orders.

These orders were introduced in 2017 and intended to force politically exposed persons to explain the origins of the money, if they had bought an expensive property that appeared beyond their means. The property or asset could, in theory, be seized if no adequate explanation were provided.

The Home Office predicted that 20 orders would be issued every year. In fact, only four are known to have been issued in four years, and none since Boris Johnson took office, according toChatham House. No Russian has been targeted either.

The shadow foreign secretary, David Lammy, said British interests were being damaged. The Labour MP said: “The Conservatives’ inexplicable record of failure in stopping corrupt elites from Russia and other authoritarian regimes storing money in our country is weakening Britain’s security, harming our national interests and undermining our diplomacy.”

Such is the level of Russian influence in the UK, that the US is said to have become worried. Max Bergmann, a senior fellow at the Center for American Progress, a Joe Biden-aligned thinktank, told the Guardian he believed “there is clear concern in the US government about the influence of Russian money in the UK”.

A week earlier, Bergmann had written a widely picked up report into the Ukraine crisis, calling for the US to establish a joint kleptocracy working group with the UK “to prod stronger action” from the Conservative government.

This week, the White House said it was proceeding with it in tandem with the UK. Economic sanctions would focus on individuals “in or near the inner circles of the Kremlin”, an administration official said, should an invasion take place.

Lists of targets have been drawn up: a shortlist of eight by allies of the jailed opposition leader Alexei Navalny, which was debated in the UK parliament last year. A public list of 35 also appears in the Putin accountability bill, put forward by members of the US Congress last month.

But economic sanctions are unlikely to involve those who have gone on to make millions in donations to the Conservatives. None feature on the two lists – and it is unlikely the Tories would in effect admit money had been taken from people deemed too close to the Kremlin in the event of war.

Borisovich, meanwhile, told the Guardian he plans to restart his “kleptocracy tours” in London this spring, as the pandemic subsides. This time, he hopes there will be an extra twist. “I would like to extend an invitation to MPs from the foreign affairs select committee,” he said.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
×