Cracking Down on Corruption: New Government Plans to Tackle Illicit Finance in Property Sector

The UK government has recently announced the commencement of a consultation aimed at addressing illicit finance and corruption within the property sector. This proactive step is a response to growing concerns regarding the lack of transparency and accountability in land ownership via trusts.

For those unfamiliar with the concept, land ownership through a trust entails legal ownership and management of the land on behalf of the true owner and beneficiary. However, pertinent information regarding the current beneficiary is not always recorded or made publicly available, potentially fostering secrecy and corruption within the sector.

The new plans seek to rectify this issue by enabling residents, the media, and the public to access information on land and property ownership, control, and financial beneficiaries. By doing so, the government aims to bring greater transparency to the property sector and deter potential instances of corruption and financial crime.

This consultation represents one of several new transparency powers introduced in the Levelling-up and Regeneration Act, aimed at mandating more information on land and property ownership, and uncovering the true ownership behind legal property ownership.

In a statement, the Secretary of State for Levelling Up, Housing, and Communities, Michael Gove, underscored the significance of transparency in land ownership, stating: “It matters who really owns land and property. It matters for how and where we build our homes, grow our food, and power our country. These proposals will lift the veil of secrecy currently afforded to land-holding trusts. Transparency about land ownership is crucial if we want to make our housing and land markets fairer. In its absence, injustices, corruption, and crime can flourish.”

This measure represents a pivotal step towards ensuring accountability and transparency in the property sector and is anticipated to have a substantial impact on combatting illicit finance and corruption. The government’s dedication to addressing these issues signifies a positive development for the UK property market and will aid in upholding ethical and legal standards within the industry.

In conclusion, the launch of the consultation to tackle illicit finance and corruption in the property sector is a commendable step towards enhanced transparency and accountability. By furnishing more information about land and property ownership, the government aims to deter instances of corruption and financial crime, ultimately fostering a fairer and more ethical property market.