UK fights foreign Dirty Money in Real estate, cites James Ibori as an example

UK fights foreign Dirty Money in Real estate, cites James Ibori as an example

Declaring “there is no place for dirty money in Britain,” U.K. Prime Minister David Cameron said Tuesday he will take on those using shell companies to invest ill-gotten gains in London real estate.

The U.K. government came under criticism this week after an official at the National Crime Agency said foreign criminals were driving up property values in London when they stash laundered money in real estate. Mr. Cameron said the U.K. Land Registry will publish data on foreign companies that own real estate in England and Wales, affecting about 100,000 property titles, and the government will look into ways to make foreign companies more transparent.

“London is not a place to stash your dodgy cash,” said Mr. Cameron from Singapore.

In his remarks, which were posted online, Mr. Cameron referenced the case of James Ibori, a former Nigerian governor who was sentenced to 13 years in prison in the U.K. for laundering money. He owned property in St John’s Wood, Hampstead, Regent’s Park and Dorset, all of which Mr. Cameron said was paid for with money stolen from the Nigerian people. A wider U.K. probe into Delta State, where Mr. Ibori was governor, led to the prison sentence handed down Friday for Mr. Ibori’s brother-in-law for money laundering.

James Ibori

“We have got to find ways to make property ownership by foreign companies much more transparent,” said Mr. Cameron.

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The issue of corporate ownership of real estate, however, is not isolated to London: It’s a problem New York City is also trying to address under new rules from Mayor Bill de Blasio‘s administration requiring the names of all members of a shell company that’s buying or selling property be disclosed to the city. The new rules followed a New York Times series on hidden money buying up real estate in New York City.

Activists welcomed the moves announced by Mr. Cameron but said they wanted more. Global Witness, a London-based activist and research group, said developing a list of foreign companies isn’t enough when the ultimate owners of those companies aren’t revealed.

“Unless we know who is behind these companies and where their money has come, the cash will keep pouring in,” Chido Dunn of Global Witness said.