Anti-graft body asks UK to disclose millionaire wealth

An anti-corruption watchdog has asked the UK government to identify over 3,000 millionaires from around the world, including 60 from India, who used a visa scheme to migrate to Britain, in an effort to crack down on any corrupt tax practices.
In a report titled 'Paradise Lost: Ending the UK's role as a safe haven for corrupt individuals, their allies and assets' released this week, Transparency International's UK chapter called for a review of the country's Tier 1 Investor visa which offers settlement rights in the UK to the super- rich from around the world.
According to UK Home Office figures, this visa has been granted to 60 Indian millionaires between 2008 and 2015, with the list topped by Chinese and Russians.

Pakistan also features prominently with 62 millionaires opting for this visa route.
Under this so-called 'Golden Visa' scheme, the UK issues residency visas in exchange for commitments to invest in the economy. High net worth individuals (HNWIs) can use the UK's Tier 1 Investor visa system by investing a minimum of 2 million pounds in UK government bonds, share capital or loan capital in active and trading UK-registered companies.
After five years, investors can apply for permanent residency in the UK.

"Corrupt individuals can use the UK's Tier 1 (Investor) visa system - otherwise known as Golden Visas - to secure residency in the UK, thereby receiving an implicit endorsement of their money's legitimacy from the UK state.

"Migrants who invest 2 million pounds into the UK economy under the scheme can apply for permanent residency after five years. By investing 5 million pounds, the waiting time can be reduced to three years, and those investing 10 million pounds can be awarded permanent residency after two years," Transparency International points out.
"There are a number of problems with this system which leave it vulnerable to abuse from corrupt individuals. Despite the clear risk of money laundering through the Tier 1 (Investor) visa process, there is no dedicated system of money laundering or 'fit and proper' person checks for applicants," it added.

Until the rules changed on April 6, 2015, there was no necessity for individuals to obtain a UK bank account before applying and being awarded a Tier 1 (Investor) visa, referred to as the "blind faith" period.
"The Home Office should bring full transparency to the
Tier 1 (Investor) visa system, with public disclosures of who is investing, how much they are investing, what they are investing in and their financial interests and assets," the report said.
"Upfront declarations should be required for Politically Exposed Persons and public officials who should expect to meet a high level of transparency, even after they have left office.

"Retrospective checks should be undertaken on historical Tier 1 (Investor) visas that were granted in the 'blind faith' period and consideration given to publishing their details," it added.