The events of the late 80s changed the world, the Berlin Wall that had stood as an evidence of division had fallen, the Iron curtain was gradually closing and the nuclear tension occasioned by the cold war was fast dissipating.The future was rife with possibilities and the possibilities brought about new realities, realities that led to the reunification of German in 1990 and soviet assets found new private owners.Companies became available for cheap the only condition required was to be close associates to Yeltsin or be close to the Russian government.As this was happening in the East various dictators and regimes round the world kept on fleecing their people and looking for new outlets to “launder stolen wealth”.
The Financial Times recently published a lengthy investigation that revealed the involvement of British banks and law firms in money laundering operations.
It said that London had for decades represented an incubator for corruption and criminals from all over the world, and that it did not turn a blind eye to Russian money, but rather welcomed it.
The Financial Times report said that 31 law firms, 86 banks and 177 educational institutions in Britain accepted or moved dirty money from around the world back home.
London’s Role
London has not become the global capital of money laundering by accident. Money launderers and those financing terrorist activities have two main requirements. The first is a place crowded with financial transactions, in which their own will be easy to lose. The second is a place where those who enable the setting up of companies and opening of bank accounts are prepared to turn a blind eye to who is the owner of a business. Secrecy over the beneficial ownership of companies is the main conduit of money laundering. Three academics—Michael Findley, Daniel Nielson, and Jason Sharman—undertook an experiment, detailed in their book “Global Shell Games.” They tried to set up a company in the way that a money launderer would (refusing to provide ownership information and other markers), emailing 7,400 solicitations to lawyers and corporate service providers in 182 countries. Contrary to what you might think, tt is more than three times harder to obtain an untraceable shell company in tax havens than in rich, developed countries such as the UK and the United States.It has to be said all of these reforms set the stage for London as the dirty money capital and despite the fact that the UK government tries to be sanctimonious illegal money has added greatly to the British economy. The purchase of most teams in the English football league and funneling of money in properties have greatly increased Britain’s economy but the counter argument is Britain cannot grow with dirty money as it loses about a 100billion pounds yearly on dirty money.
The Inconvenient Truth
The inconvenient truth is that, the dirty money conundrum in Britain will continue as there is a rife legal system that supports it despite the hypocrisy Britain displays.I must add that Britain had always thrived on blood money from the days of the exploitation of India and other African countries for their commonwealth.It would interest you to know that most British companies that exploited local assets in colonial days did so in a various crude forms of money laundering.Prominent among such is the likes of Cecil Rhodes that flourished on fleecing Rhodesia would sympathy of any sort. I submit by saying Britain needs to purge itself from this pugilistic greed.
