The government is set to amend the law to make it easier to introduce sanctions against Russian oligarchs after Britain was criticized for being too slow to act.
Ministers are tabling amendments to the Economic Crimes Act to allow the UK to align with penalties imposed by EU and US allies.
Prime Minister Boris Johnson said foreigners trying to launder money in the UK had “nowhere to hide”.
But Labor accused the government of backing down under pressure.
After the invasion of Ukraine nine days ago, ministers have already imposed asset freezes on private individuals and companies with ties to Russian President Vladimir Putin.
But opposition parties have said the government must do more to crack down on wealthy Putin allies who are storing large sums of money in London.
The bill, which has bipartisan support, is expected to be fast-tracked through parliament on Monday.
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Outlining its changes, the Foreign Office said the “appropriateness test” – a threshold that must be met when imposing sanctions on individuals – would be removed.
It also speeds up the deadline for foreign companies to declare their true owners – from 18 months to six months. The maximum penalties for not complying with this rule will be increased from £500 to £2,500 per day.
The bill is expected to come into force by the middle of this month.
Mr Johnson said: “Britain has paved the way with the toughest package of sanctions against Putin’s regime and we are bolstering this with new powers in our arsenal to move further and faster.
“We will step up the pressure on the criminal elites trying to launder money on British soil and shut down the web of corruption. You will have nowhere to hide.”
Shadow Foreign Secretary David Lammy welcomed the government’s “about-turn” but added: “It is totally unacceptable that oligarchs with links to Putin, who should already be facing sanctions, are allowed to move their money because of the government’s incompetence.
“Ministers should have introduced the legislation needed to work in lockstep with our allies and partners months ago, rather than sanctioning hundreds fewer individuals and organizations than the EU and US.”
Recent research by campaign group Transparency International suggests that since 2016 £1.5 billion worth of British property has been bought by Russians accused of corruption or ties to the Kremlin.
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