Corrupt Russian oligarchs sheltering dirty money in Britain’s overseas territories will be exposed under laws set to be forced on Theresa May next week.

Tax havens such as the British Virgin Islands and Cayman Islands have so far resisted moves to follow the UK’s lead and reveal to public view the identities of those benefiting from assets held under their jurisdictions.

Campaigners say that the secrecy enables money laundering, which in turn facilitates criminality, corruption and oppression, including in Russia.

The prime minister has promised tougher measures against President Putin’s cronies after the poisoning of the former Russian spy Sergei Skripal and his daughter, Yulia, in Salisbury last month.

Next week a coalition of Tory rebels, Labour, the SNP and other opposition parties will challenge Mrs May to match her rhetoric with action when new sanctions legislation is debated in the Commons. Andrew Mitchell, the former international development secretary who is leading the Tory rebellion, said last night that he had the “certain” backing of 19 Conservative backbenchers, more than enough to defeat the government.

Urging the government to back down, Mr Mitchell said: “Mrs May has so far led the world in taking a stand against Russia’s challenge to international norms. But if she is to deliver on her promises she must ensure that filthy money fuelling the worst abuses isn’t sheltering under a British flag anywhere in the world.”

A list of MPs expected to back the move, seen by The Times, includes senior MPs such as Tom Tugendhat, Nicky Morgan, Sarah Wollaston, Ken Clarke, Nick Herbert and Nick Boles.

Ministers had hoped to stave off trouble by agreeing to demands for a “Magnitsky amendment” that would mean the UK following countries such as the US and Canada in targeting those accused of human rights abuses with visa bans. As part of the cross-party deal to bring in the reforms, ministers have accepted a role for MPs to scrutinise how sanctions are being applied.

The Foreign Office has resisted pressure to go further, however, and complete reforms to tax havens started by David Cameron in 2013. Britain has introduced a public register of beneficial ownership that exposes to general view the owner of assets held in complex webs of shell companies, but Mr Cameron failed to persuade British overseas territories to follow suit.

The government insists that it cannot impose its will on other elected governments, but critics point out that it has done so before, in abolishing capital punishment for example.

An amendment requiring the government to force British overseas territories and crown dependencies to bring in the transparency reform by the end of 2020 has been tabled by the Labour MP Dame Margaret Hodge and is being strongly supported by the party’s front bench. Helen Goodman, part of Labour’s foreign affairs team, said that securing a public register of beneficial ownership was a top priority.

MPs are expected to vote on the Sanctions and Anti-Money Laundering Bill on Tuesday.

OWNERS OF COMPANIES BASED IN BRITISH OVERSEAS TERRITORIES

Oleg Deripaska

He used a company in the British Virgin Islands to buy a £45 million home in London.

Gennady Timchenko The oil and gas trader and friend of President Putin benefits from an offshore holding company, according to the US Treasury.

Alexander Angert Nicknamed the Don of Odessa for alleged mafia links, he bought a flat in Kensington.

James Ibori The former governor of Delta state in Nigeria bought a jet and a house in Dorset.

Soulieman Marouf A fixer for President Assad of Syria, he has owned at least six London flats.

Saif Gaddafi The son of the former Libyan dictator owned a £10 million home in Hampstead, London.

Riza Aziz The stepson of Malaysia’s PM bought a mansion in Belgravia, central London.

Q&A

What’s the issue? Five years ago David Cameron promised to stamp out corruption and prevent individuals from using complex shell companies to hide their assets. The UK’s public register of beneficial ownership is acknowledged as a global standard in transparency.

So what’s the problem? He backed off forcing British overseas territories (OTs) and crown dependencies (CDs) to follow suit. Eventually they agreed to closed registers searchable only by law enforcement bodies.

Is there any evidence that Russian oligarchs abuse tax havens? Yes, and campaigners say public registers would allow experts to comb through records, unravelling the money trail to criminal sources.

What happens next? The government will argue that it can’t force the OTs and CDs to act, and that even if it could it risks driving dirty money deeper into the shadows, and that Britain has a duty not to harm administrations struggling to rebuild after Hurricane Irma.

What about the Magnitsky amendment — what’s that? A provision in the Sanctions and Money Laundering Bill that would extend the scope of the state’s ability to freeze the assets of those guilty of human rights abuses. It is named after Sergei Magnitsky, who died in jail in 2009 after accusing Mr Putin of links to corruption.

Source: The Times