Capital suggestion
Background: On May 12, David Cameron, the-then prime minister of the United Kingdom of Great Britain and Northern Ireland, hosted an Anti-Corruption Summit to “step up global action to expose, punish and drive out corruption in all walks of life.” According to the UK’s Land Registry figures, “UK real estate worth more than GBP170 billion is held by more than 30,000” offshore companies (Pakistan’s total external debt is GBP56 billion).
The National Crime Agency (NCA), the UK’s national law enforcement agency, “believes [that] up to GBP100 billion of tainted cash could be passing through the UK each year. Much of it ends up in real estate...”
Criminal Finances Bill 2016-17: On October 13, the Criminal Finances Bill was introduced to the House of Commons in order to improve the government’s ability to “tackle money laundering…corruption and recover proceeds of crime.” The new bill will “enable seizure and forfeiture of the proceeds of crime that are stored in UK assets”.
Unexplained Wealth Order (UWO): As part of the Criminal Finances Bill 2016-17, UWO will mean that an individual or an offshore company “will have to explain the origin of assets that appear to be disproportionate to their known income”. The Unexplained Wealth Order “could also be applied to foreign politicians, or officials, or their associates. It would allow the authorities to take legal action against Russian oligarchs linked to Vladimir Putin who use London to ‘hide’ their money, and African dictators who invest millions outside their own countries”.
The Guardian: According to The Guardian, the British national daily newspaper, “Hundreds of British properties suspected of belonging to corrupt politicians, tax evaders and criminals could be seized by enforcement agencies under tough new laws designed to tackle London’s reputation as a haven for dirty money. The Serious Fraud Office, HM Revenue and Customs and other agencies will be able to apply to the high court for an order forcing the owner of an asset to explain how they obtained the funds to purchase it. The order will apply to property and other assets worth more than GBP100,000. If the owner fails to demonstrate that a home or piece of jewellery was acquired using legal sources of income, agencies will be able to seize it.”
The Guardian “revealed through the Panama Papers how a powerful member of Muammar Gaddafi’s inner circle had built a multimillion-pound portfolio of boutique hotels in Scotland and luxury homes in Mayfair, Marylebone and Hampstead in London. Ali Dabaiba, who was head of Libya’s infrastructure fund for a decade, has been accused by government prosecutors in Tripoli of plundering money meant for hospitals, schools and archaeology.”
Bukola Saraki, the elected president of the Senate of Nigeria, second in-line for the succession to the Nigerian presidency, owns a property in Belgravia in his own name. The Panama Papers revealed that the “GBP5.7 million property next door belonged to Seychelles and BVI companies benefiting Saraki’s wife...”
The UK government’s message is clear: “Those who avoid paying tax, or have an undeclared business could soon face civil legal proceedings to recover the money – or criminal charges if they make false or misleading statements.”
It is pretty hard to tell what does bring happiness; poverty and wealth have both failed – Kin Hubbard.
The writer is a columnist based in Islamabad.
Email: farrukh15hotmail.com Twitter: saleemfarrukh