Oligarchs suspected of corruption face being forced to explain source of their wealth

Boris Titov, Russia’s “business tsar”, said when he was recently interviewed that he was aware that more than 10 business persons had approached the Kremlin wishing to return home to Russia but asking that they can return without fear of persecution or losing their wealth.
Boris Titov, Russia’s “business tsar”, said that a list of more than ten businessmen who wanted to leave London had been passed to the Kremlin.
“It’s with the president,” he said. “As yet the list is not final as we continue to receive applications.” He did not name the Russians who had asked to be considered for safe repatriation.
“It’s with the president,” he said. “As yet the list is not final as we continue to receive applications.” He did not name the Russians who had asked to be considered for safe repatriation.
Mr Titov, 57, was speaking in London after The Times revealed on Saturday that the High Court was preparing to issue new unexplained wealth orders (UWOs) to freeze and recover the property of individuals unable to prove the legitimate origin of their wealth.
The UK government has now enacted new laws aimed at Russian oligarchs suspected of involvement in organised crime.
These new orders will enable UK government to ask wealthy individuals to explain to the societies how they managed to fund their lavish lifestyles.
Security minister Ben Wallace said new powers will be used as part of a crackdown on gangsters.
Foreign criminals and corrupt members of the global elite will see the “full force of government” used against them, he said.
In an interview with The Times, Mr Wallace warned those involved in criminal activity: “When we get to you, we will come for you, for your assets and we will make the environment that you live in difficult.”
New unexplained wealth orders (UWOs) will be to seize the UK assets of wealthy people suspected of having profited from the proceeds of crime
The problem with this “gung ho” approach is that legitimate Russian businessman may get caught up in the fever to catch the criminals. The freeze first and ask question later attitude can have horrendous consequences for individuals and on their businesses.
I would therefore advise that those that are worried about the new government draft a narrative/explanation of the origins of their wealth and carry out a forensic analysis of their assets with documents to prove the source of that wealth, so that should an approach be made by the government they are ready to respond.
Failure to do so, could result in assets being frozen and lengthy and expensive litigation proceedings to unfreeze assets.
In addition, individuals may find themselves without funds to draw upon.
For further expert advice on the above I most pleased to arrange a telephone conference or meeting.

Julia Korotkova

CEO Taxfirmuk Ltd
+44 0203 092 1852
info@taxfirmuk.com
www.taxfirmuk.com