Homes: Property Market and Purchase

homes: More than 90bn is estimated to be laundered illegally through the UK each year, according to the all-party parliamentary committee scrutinising the registration ofoverseasentitiesbill, according to The Guardian. Illicit funds help sustain Britain's inflated property market through the purchase of homes that are frequently left unoccupied, emptying the wealthier parts of London of residents. Draft legislation contains insufficient verification checks to deter criminals from submitting false information and could allow those exploiting trusts to circumvent controls, MPs and peers have said. The issue was highlighted last year in the BBC drama McMafia, based on the book by Misha Glenny, which examined the penetration of western economies by organised Russian criminal gangs. Buying an expensive mansion through a shell company enables a corrupt individual to 'wash' a large sum of suspicious money in a single transaction, while preventing law enforcement or journalists from finding out who truly owns it. Quick guide Property and money laundering Show Hide What is the problem There have long been concerns that the UK property market is vulnerable to money laundering and corruption, with London real estate considered a particular problem. (news.financializer.com). As reported in the news.