Jersey commits to joining register of foreign-owned UK property

Friday 25 February 2022

Jersey would be willing to sign up to a public register naming the foreign owners of UK property, the External Relations Minister has said amid UK discussions about clamping down on Kremlin-linked wealth.

Senator Ian Gorst, who also has responsibility for financial services, said that he had no concerns about revealing the ultimate owners of property, who use “perfectly legitimate” structures in Jersey to acquire and hold property in the UK.

Plans to create a register have been brought forward after Russia’s invasion of Ukraine, an intention confirmed by UK Prime Minister Boris Johnson when answering a question on it in the House of Commons on Thursday.

It is likely that the UK government will soon bring forward measures on Unexplained Wealth Orders in its Economic Crime Bill, which will also include reforms to Companies House and the register of overseas property ownership.

Using a Jersey company is an established method for non-UK nationals to purchase property in London and elsewhere as it reduces the amount of stamp duty and other charges they have to pay.

Pictured: External Relations Minister Ian Gorst said "non-UK nationals buying property through Jersey is not an area of concern."

Senator Gorst said that revealing the names of individuals and businesses using Jersey in this way “was not an area of concern” and the island had expected it to happen for some time. 

He added that a register had been proposed by the UK Government when David Cameron has been Prime Minister but the plan had not come to fruition.

Campaign groups and some UK MPs have called for a public register for some time.

This week, Transparency International UK said that new analysis it had carried out had identified at least £1.5bn worth of UK property owned by Russians accused of financial crime or with links to the Kremlin. 

It said: “Most of this property is held by secretive offshore companies. The true figure for illicit wealth invested in the UK is likely to be far higher, with almost 90,000 properties across the country owned by opaque companies which prevent the British Government, law enforcement and the public from knowing who truly owns them.

“The British Government is now committed to bringing forward legislation that would unmask the true owners of secretive companies owning UK property and give greater powers to Companies House to prevent the abuse of UK companies. To make the greatest impact on corrupt wealth, these measures should be implemented as soon as possible.”

The anti-corruption organisation added: “Companies registered in the UK, Britain’s Overseas Territories and Crown Dependencies are also used to hide the flow of illicit funds around the world. 

“Transparency International UK identified 2,189 of these entities used in 48 Russian money laundering and corruption cases. These cases involved more than £82 billion worth of funds diverted by rigged procurement, bribery, embezzlement, and the unlawful acquisition of state assets. 

“The UK’s government should assist Britain’s Overseas Territories in ensuring their beneficial ownership registers are publicly accessible this year.”

Senator Gorst said that Jersey was also committed to make public its register of beneficial ownership – who ultimately controls the companies registered in the island. 

The Government had originally committed to publish this by the end of next year, he said, but this may be delayed as the island was waiting for the EU to first publish a review of its own anti-money laundering directives, which would establish a standard to which Jersey would align.

Last November, more than 40 MPs from across the political spectrum called on the UK Prime Minister to create a register of offshore entities that own UK property amid a rise in Crown Dependency ownership.

This was after research showing that the number of properties with overseas owners in England and Wales had trebled since 2010.