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Russian 'dirty money' puts UK security at risk, report warns
A committee of MPs are calling for a clampdown of Russian money laundering through the City of London's financial institutions, arguing that it could potentially put national security at risk.
Such activities also damage the government's efforts to take a tough stance against Russia's aggressive international relationships, the lawmakers argued.
A report released on Monday by UK members of parliament said London was being used to hide dirty money from Russia and its allies by making use of London's markets while being sanctioned elsewhere.
"The scale of damage that this "dirty money" can do to UK foreign policy interests dwarfs the benefit of Russian transaction in the City," said the report.
The report also said allowing "kleptocrats and human rights abusers to use the City of London to launder their ill-gotten funds to circumvent sanctions," could damage national security.
The chairman of the committee that carried out the report, Tom Tugendhat wrote in the Sunday Times: "The UK's lethargic response is being taken as proof that we don't dare stop them. London's markets are enabled the Kremlin's efforts."
Security and economic crime minister Ben Wallace said the UK is "determined to drive dirty money and the money launderers out".
"We will use all the powers we have, including the new powers in the Criminal Finance Act, to clamp down on those that threaten our security," he said.
In the report, the committee suggests that the UK should work with other nations to prohibit the purchase of sovereign bonds in which a sanctioned entity has acted as a book runner.
The committee also calls for a strengthening of sanctions against individuals connected to hostile regimes and relieving the sanctions once Russia's behaviour has changed.