New law to target money laundering officials

Home Secretary Theresa May has proposed a new law which will target MPs, councillors and civil servants which are suspected of financial corruption.

The plans are part of a wider strategy to tackle money laundering. The proposed law is subject to a six week consultation period which is due to be launched in Commons, and plans to give civil courts powers to impose new ‘unexplained wealth orders’.

The new law will force officials suspected of money laundering to declare their wealth, with those failing to satisfy authorities likely to have their property and cash seized.

May said: "The laundering of proceeds of crime through UK institutions is not only a financial crime, it fuels political instability around the world, supports terrorists and extremism and poses a direct and immediate threat to our domestic security and our overseas interests.

"We will forge a new partnership with industry to improve suspicious activity reporting, deliver deeper information-sharing and take joint action on enforcement. And we will act vigorously against the criminals and terrorists responsible, to protect the security and prosperity of our citizens, and safeguard the integrity of Britain's financial economy."

The news comes after the Panama Papers scandal, where 11.5 million files were leaked from the database of offshore law firm Mossack Fonseca, revealing how the rich (including 143 politicians) have been using such offshore havens to store money.

Commenting on the new proposals, Robert Barrington, executive director of anti-corruption body Transparency International, UK said: "There are some excellent ideas here, but the proof of the pudding will be in whether they are put into action.

"The powers that are envisaged could make a real difference and, while it is important they are properly debated in Parliament to allay any concerns over civil liberties, it is equally important that they are not watered down by self-interested lobbying during the consultation process."