UK Government Requires Wealthy Russians to Explain Source of Wealth

Category: Top Stories

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. oligarch / ˈɒl ɪˌgɑrk / (n) – an individual who is part of a small group that controls power
    Example:

    Foreign oligarchs in the country have contributed to economic growth.


  2. seizure / ˈsi ʒər / (n) – the act of forcefully taking a person’s property
    Example:

    The police’s unexpected inspection resulted in the seizure of smuggled goods.


  3. fabricate / ˈfæb rɪˌkeɪt / (v) – to make something up to deceive someone
    Example:

    He fabricated his birth certificate to hide his true nationality.


  4. under the guise of / ˈʌn dər ðə gaɪz əv / (idiom) – having an appearance different from one’s real identity
    Example:

    The thieves entered the mall under the guise of security staff.


  5. fictitious / fɪkˈtɪʃ əs / (adj) – not real
    Example:

    I found the man’s statement suspicious because he mentioned a lot of fictitious events.


Article

Read the text below.

The UK government has issued an order that mandates Russian oligarchs in the country to justify their massive wealth.


This law, called the Unexplained Wealth Orders (UWOs), was issued last January 31. Under the UWOs, wealthy individuals will need to account for assets exceeding £50,000 (around ¥7,400,000). Failure to do so may result in seizure of these assets by government officials.


According to reports, around £90 billion of illegally obtained funds is allegedly laundered in the United Kingdom each year.


Security minister Ben Wallace has disclosed some details about money laundering, in which the Russian state is allegedly involved. Money laundering entails fabricating ownership of an illegally acquired asset or property, usually under the guise of a non-existent organization, to give the impression that it was legally obtained.


The infamous “Laundromat case” is an example of money laundering that took place between 2010 and 2014. During this period, around 21 fictitious companies were used to launder Russian money through western banks. This case may be the reason why the law will target Russians even though the UWOs can be issued to all foreigners in the United Kingdom.


The UK government emphasizes that only government agencies related to law enforcement can register for a UWO. Some of the agencies in the United Kingdom that can apply for this order include the National Crime Agency and the Financial Conduct Authority.


It is also important to note that falsification of the necessary evidence will be considered unlawful. In addition, evidence gathered from the UWOs can be used in court proceedings.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think that the UK government’s decision to issue a UWO to Russian oligarchs is justified? Why or why not?
• Do you think the implementation of a UWO would be necessary in your country? Why or why not?

Discussion B

• Why do you think organized crimes (e.g. smuggling, illegal gambling, and copyright infringement) have become more prevalent in recent years?
• What measures should governments take to prevent organized crimes?