London Daily

Focus on the big picture.
Friday, Aug 22, 2025

'Shameful' inaction from ministers still allows Russian 'dirty money' to flow through UK, says report

'Shameful' inaction from ministers still allows Russian 'dirty money' to flow through UK, says report

The government committee said complacency and ineffective action has meant Russian assets are being laundered through the City of London despite the war in Ukraine.

"Dirty money" from Russia is still flowing into the UK despite the war in Ukraine, MPs have warned.

The House of Commons Foreign Affairs Committee said government complacency and a failure from ministers to take effective action meant Russian assets "laundered" through the City of London were being used to finance Vladimir Putin's war chest.

A highly critical report said "inadequate preparation and foresight" by the leadership of the Foreign, Commonwealth and Development Office (FDCO) meant the government was slow to impose sanctions, adding that it was "shameful" it had taken a war for ministers to introduce the Economic Crime (Transparency and Enforcement) Act 2022.

The law is intended to prevent corrupt funds from being laundered through the UK property market.

The report said that measures still "do not go far or fast enough" and did little to address the "fundamental mismatch" between the resources available to law enforcement agencies and the individuals they are targeting.
Advertisement

It also renewed calls for a "substantial increase" in funding for the National Crime Agency, Serious Fraud Office and enforcement agencies.

Rhetoric has not been matched by action


The report also concluded that Russians believe the UK is a "safe haven" for their "corrupt wealth", adding that the government was unwilling to push forward legislation to stop the flow of dirty money.

"The government's unwillingness to bring forward legislation to stem the flow of dirty money is likely to have contributed to the belief in Russia that the UK is a safe haven for corrupt wealth," the report said.

"It is shameful that it has taken a war to galvanise the government into action.

"Although ministers have spoken eloquently in the House about the need to clamp down on kleptocrats, rhetoric has not been matched by constructive action. Meanwhile, corrupt money has continued to flow into the UK.

"Without the necessary means and resources, enforcement agencies are toothless. The threat (that) illicit finance poses to our national security demands a response that is seen to be serious."

The UK government has threatened to impose severe sanctions against Russia but the committee said the punishments are "underprepared and under-resourced".

"The primary reason for early ineffective action on sanctions was inadequate preparation and foresight by the leadership of the FCDO and consequent understaffing within the sanctions unit," it said.

"Policy effectiveness requires practical backing, sufficient resources and the right capabilities, including the capacity to gather necessary intelligence to support designations."

Chairman Tom Tugendhat said successive governments have "allowed malign actors and kleptocrats to wash their dirty money" in the City.

"Complacency has left the door open to corrupt wealth taking root and morally bankrupt billionaires using the UK as a safe deposit box," he said.

"The UK's status as a safe haven for dirty money is a stain on our reputation. The government must bring legislation in line with the morals of the British people and close the loopholes that allow for such rife exploitation."

Newsletter

Related Articles

0:00
0:00
Close
After 200,000 Orders in 2 Minutes: Xiaomi Accelerates Marketing in Europe
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
×