confidentially speaking
The Africa Confidential Blog
Ukraine crisis fastracks anti-corruption reforms
Blue Lines
The biggest war in Europe for seven decades is destroying lives and weakening economies with its effects rippling well beyond the continent. An unexpected effect is the consensus among European states to back consequential sanctions against Russia, just as international support for such measures was waning. Allied to the stronger backing for sanctions, states are more determined to scrutinise politicians and their business allies far more closely.
Britain has been widely characterised as a laundromat for the proceeds from corrupt business. Now it is introducing a Register of Overseas Entities that will require anonymous foreign owners of British property to reveal their real identities, and will apply retrospectively to property bought up to 20 years ago. That widens the scope of Unexplained Wealth Orders, making sanctions easier to impose.
The main targets are Russian oligarchs but it will have implications for multinational businesses operating in Africa and their political allies. It will make it harder to launder cash into property, assets and businesses in the City of London. As other major jurisdictions in Europe and North America pass their own laws, that will pressure tax havens to increase transparency or face sanctions.
It's a new era for financial sanctions and they will not be restricted to Russia.