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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.