Money laundering in London from Bangladesh

Myself in front of one of the properties which are part of the network of properties belonging to an Ex-Land Minister of the previous Bangladesh government.

Not since Robert Clive and the East India Company looted the Bengal Treasury after the Battle of Plassey 1757 have we heard such talk of ill gotten gains from the same part of the world – mostly Bangladesh now – talked about again in London.

Whilst we known of the activities of certain individuals from the past administration of Bangladesh having almost over 350 properties in the UK alone, is it at all comparable to what the Panama Papers revealed about Russian and Ukrainian oligarchs and there activities in London? Some of which for example helped fund Chelsea FC success in recent times with dodgy Russian monies. It is the only action the previous government actually took on the matter, as they ceased the assets from the owner Abramovich soon after the Ukraine war broke and sold it on to new owners of Chelsea FC. 

Indeed this is nothing new in London as only this weekend we learnt in the Sunday papers about the two sons of the ousted President of Gabon, Ali Bongo from Gabon in 2023 who have been left playing XBox in their Mayfair Mansion. You do have to ask where did they get the means to live in a Mayfair Mansion whilst exiled?   

One thing is for sure, money laundered in London skews the Central London housing market and our capital is one of the global hub of the money laundering. It was something l looked into whilst l was at the London Assembly as an Assembly Member, which the previous Mayor of London Boris Johnson was in denial about when l asked him about it and did not do anything about it once he had reached No 10 Downing Street even though he acknowledged the issue eventually. 

To explain the process, money Laundering became a distinct criminal offence, or rather a number of related offences, by virtue of the Proceeds of Crime Act 2002 (POCA). In effect the Act made it an offence to deal in any way with any benefit accrued through crime.

The MPS has developed a clear strategy for the mainstreaming of POCA within the MPS, with resources on borough and within the various specialisms looking at the movement of money and other proceeds of crime. There is a focus on money laundering, as it is a criminal lifestyle offence that triggers confiscation. The majority of the incentivization funding from POCA is being funnelled into creating a POCA infrastructure.

An investigation into money laundering is effectively taking place when any investigation into serious acquisitive crime is being conducted The aspiration under the MPS POCA plan is to look at the money laundering aspect of all acquisitive crime at all levels of policing and criminality.

In common with other types of crime the MPS structure and processes allow for more complex money laundering investigations to be undertaken by different specialist units within a number of MPS Directorates. The SCD6 Money Laundering Investigation Team has particular expertise and they undertake the most complex cases and are conducting innovative investigations around criminal money.

The number of arrests for money laundering across the MPS is not readily or easily available and as stated above most offences will have suspicion of money laundering attached but individuals may not be specifically arrested for that offence ‘ although they may later be prosecuted for money laundering based on the evidence presented to the CPS.
As a guide to activity in the MPS there were 245 persons charged with money laundering and 374 cash seizures (usually a person is arrested for money laundering at the time they have cash seized from them) for the 12 months ending August 2006 (figures obtained from the Joint Asset Recovery Database). Also in 2006 at the half-year point the MPS had seized £7.5 million in cash, restrained £32 million and had £13.5 million ordered forfeit and confiscated by the courts.

So in short whilst the Bangladesh case of money laundering in London will be looked into with much detail over the next few years, l am sure it is only the tip of the iceberg for such activities in London from across the world and trust these other instances get investigated a lot more as well after this exposure of the issue in this particular instance from Dhaka. 

 

Acting on Airbnbers along Bell Street,NW1

A noticeable feature in the morning now along Bell St,NW1 and many of the streets off it, are the Airbnber stayers in the neighbourhood.  Many local residents are aware of it and its impact on the local rental market and has been illustrated by all the attention given to the issue in Central London, where we have the biggest concentration of the Airbnb flats. 

A new angle has been given to me by a local hotelier, who feels the Airbnb flats are taking business from him when they don’t pay any VAT, business rates or corporation tax as well.  Given we have over 200,000 of these flats identified in Central London alone, l hope Central government takes up this issue.  This said we do need the Register of Short Lets to be live nationally as soon as possible.

I am also glad to tell you also that as soon as l reported it to the Westminster City Council, they have immediately acted with by an investigation by their Short Term Letting specialist Team. So watch this space on how matters develop on this front. It’s clearly a priority issue for the council’s enforcement teams! 

Thames Water – Nationalise & Mutualise

During a cost of living crisis, we see that Thames Water has gone to court for loan of £3 billion when it already has £17 billion debt, and wants to hike 53 per cent increase on our water bills to fund their dividends to shareholders where a third of customer bill will cover interest payments alone.

Now the full privatisation of water supply & sanitation is an exception today, being limited to England, Chile and some cities in the United States. Furthermore, public ownership is popular with 82 per cent wanting publicly owned water more popular than that of our railways in the UK already undertaken by the Labour government on Rail Operating Companies (ROCs).

Thames Water PLC record in London is pretty awful with a unused desalination plant built after 2008; in particular in W9 where even after Flip kiosks were installed we had flash floods in 2021 and they are a major cause of road roads in Central London as they keep digging holes for themselves.

We really should not permit the socialising of their losses, for it all to be return to them to profit by again in the future. That is the customer is bailing out the privatised water industry for the work they failed to do with the money we gave them before in the first place!

I just wish our MPs, AMs & Labour Groups and Mayor of London to make the case for public ownership similar to mutualization of water facilities by local & regional government in Wales for London as the folding up of Thames Water occurs over the next few weeks, for the residents of all our households in the constituency and beyond.

The Green Spine & Broadley Gardens – where’s the love?

Walking through Broadley St Gardens to get to Paddington Recreation Ground regularly, is an amusing contrast this winter.  Where you’ll find the grass and planting in very poor condition and also physical infrastructure like the water foundation in Broadley St Gardens and along the Green Spine. And then you go to Paddington Rec, the grounds and playing facilities are in immaculate conditions, so not surprising it has a Green Flag accreditation. 

It is almost as though after the regeneration efforts in Church St Ward with the Green Spine, they forgot about the maintenance and management of this new green infrastructure in the middle of the ward. This while the Council is helping St Johns Church, Kensal Green in their Greening programme of the lawn, hedging and trees at the church!

So I trust the Council can make amends straight away before the spring and summer, where the Broadley St Gardens is intensely used by residents, school children and the working population. It has clearly fallen between Regeneration and the staff that manage and maintenance the Green spaces of the City. 

Its an intensely used space and illustrates well why we need more green space in Church St Ward. Who knows one day with when its much better managed and maintained similar to Paddington Rec, it will be accredited with a Green Flag as well!  

 

Resolution for 2025 – Save the CPOs in Westminster

 

In this new year, there is one priority we must have in Westminster and that is saving as many of the Crown Post Offices(CPO) – Baker Street, Paddington Quay, Vauxhall Bridge Road Victoria, Lupus Street Pimlico, and at the Aldwych – earmarked for closure last year. 
 
They are the life-lines for those still using cash and not into the on-line(and those struggling with it as well) world, risks isolating many of the communities in the City of Westminster.  Lets not also forget the professionalism of the staff is second to none along with their patience with many of us struggling with government applications for driving licences, passports and such like. And finally many of our local small and medium businesses in Paddington, Marylebone and Pimlico which depend on them as well. 
 
A few years ago we managed to save the CPO Lupus Street, SW1 on Churchill Gardens, let us do the same with all our remaining CPOs now threatened with our arguments. 
 
The letter was published in the Westminster Extra edition for this week, as shown below as the letter of the week! 
 

Congestion charging in NYC – Are the diplomats paying?

Now that New York City is charging for vehicles to enter lower Manhattan since the new year, albeit 20 years after we installed it in London, l wonder if the diplomats pay it at all, when going through the zone? 

I only ask this in light of our experience with diplomats not paying our congestion charge, particularly the US Embassy. And that with the UN Head Quarters based in Upper East Manhattan, New York does have one if not the highest concentration of diplomats in the world! 

When l was at the London Assembly, l annually asked about the outstanding amounts due to TfL from all the embassies including the US Embassy even though it has now moved outside the congestion zone from Grosvenor Square to Nine Elms. 

Information about outstanding debt owed by Embassies and Diplomatic Missions for non-payment of the Congestion Charge is regularly published by Transport for London at the following link: https://content.tfl.gov.uk/cclez-online-factsheet-embassy-debt-dec20.pdf

Now discount and exemption plans are available for the Congestion Relief Zone. A discount plan is available for low-income drivers, and exemption plans are available for individuals with disabilities or organisations transporting people with disabilities, emergency vehicles, buses, and specialised government-owned vehicles. Rightly so but clearly none for the diplomats working at the UN HQ. 

So it does mean that our British diplomats in New York are having to pay the congestion charge toll whilst its not being paid by US diplomats and others in London. Which does not strike me as fair at all. 

It is right and proper that the monies raised by the charge after helping to reduce the congestion in the Lower Manhattan, are used for investment in public transport as well on both sides of the Atlantic. I am not sure you can have it both ways though, not paying it here in London but charging diplomats in New York! 

Settling these long standing debts due to Transport for London in London would go along way in helping the provision of public transport for both resident, visitors and diplomats in London. 

 

Route 205 to Paddington – what happened to integrated Transport?

 

With TfL proposing bus rerouting of the 205,30 and 27 coming so soon after the Central London Bus Review,  l have decided to make the same point l made then for the 205 bus route. As there are proposing to withdraw route 205 between Paddington and Baker Street station and extend it to Marble Arch via Baker Street

The 205 is a very useful service, as it links up the four main north London rail termini of Paddington, Marylebone, Euston, King’s Cross-St Pancras, and Liverpool Street Station. This is a particularly helpful link for those customers with accessibility requirements or who may have heavy luggage that make interchange with the London Underground more challenging. This is also a very useful link during disruption to the Hammersmith & City, Metropolitan, and Circle lines as it largely replicates their route.

The 205 bus service used to stop in Marylebone station forecourt, but in recent years this stop was removed to speed up the service. Chiltern Railways objected to this proposed change to the 205 at the time on the basis that it would negatively impact on the customer experience especially for customers with luggage or those with additional mobility needs, who may find interchange to the London Underground network difficult. The same will apply if there is no connection between Paddington and Marylebone Railway stations.

So in short, l don’t think the proposal does much at all for integrated transport between our bus service and rail terminuses, and l trust TfL will consider them as a result.

Finally the deadline for views and opinions has been extended till the 10th of January, so visit www.tfl.gov.uk/30-205-bus proposals and send your views to haveyoursay@tfl.gov.uk

Late Night Levy for WCC to solve Soho’s urinating problems

Clearly Late Night Levy in operation in the City of London

The financing of the further provision and management of public toilets in Soho is a critical issue in dealing with the antisocial behaviour of street urination and open defecation.

A number of means exist to get additional resources into the neighbourhood, including the late night levy. The City of Westminster has one of the highest concentrations of late night licences in the UK, yet no Late Night Levy, whilst adjoining boroughs like Camden, which also covers a third of the West End, has had one since 2016, covering nightspots like Camden Town.

The City of Westminster has over 3,700 licensed premises in total. These include nearly 500 pubs, bars and wine bars, over 1,000 restaurants, 56 theatres, 136 nightclubs and dance venues with licences to serve alcohol. In Soho itself, it is estimated that there are 495 licensed premises, of which 121 have late night licences with terminal hours between 1.00 and 6.00am. These late night licensed premises have a capacity of 22,827. More recently, between 2020 and 2023 an additional 51 new alcohol licences were granted, with a capacity of over 4,245. The West End Cumulative Impact Zone has been identified because the cumulative effect of the concentration of late night and drink-led premises and/or night cafés has led to serious problems of disorder and/or public nuisance affecting residents, visitors and other businesses. The extent of crime and disorder and public nuisance in the Soho neighbourhood arises from the number of people there late at night, a considerable number of them being intoxicated. New public services funded by the late night ley would include police, health and emergency, transport, and environmental services (cleansing and refuse services) in places like Soho under chronic strain from existing levels of activity, adversely affecting civic amenities and the quality of residential life.

The levy, before it comes into force, requires the licensing authorities to consult with the Metropolitan Police, the Mayor of London, licensed premises and other relevant authorities before deciding whether to introduce the levy in the area. Under the standard terms of the levy, the police would receive at least 70 percent of net levy revenue, with the licensing authority retaining up to 30 percent to fund other activities besides policing, although the precise division of this revenue split is open to negotiation. So, along with funding the enforcement of the law by the Police with regard to urination, defecation and other antisocial behaviour associated with alcohol intoxication, it can help fund facilities for the relief of such antisocial behaviour on the street, as well as the management of new or existing public toilet facilities.

After meeting with Camden Council representatives and discussing their Late Night Levy, it is clear that there is much to be learned from their experience in Camden Town since 2016, and scope for WCC to work together with Camden on late night issues across the whole of the West End.

With its 180 licensed premises and 8,000 residents, Shoreditch’s profile is quite different from  Soho’s but it does share many of the same challenges related to the hosting of a thriving nighttime economy. As unlikely as it may seem, Shoreditch has even fewer public toilet facilities than Soho – just one, in Liverpool Street Station. What it does have, however, is a successful Late Night Levy, which it uses to pay for temporary toilet provision, additional policing, accreditation and training of door staff, and a WAVE radio system connecting them to a team of local enforcement officers – all of which make a night out in Shoreditch a safer and more pleasant experience for visitors, and help to mitigate against the sort of “resident cleansing” which has hollowed out Soho’s resident population in recent years. The amount levied on businesses is set at a national level, according to rateable value, and applied across the whole of the local authority, so it would not be too difficult to calculate the amounts involved annually, once it is established in which rateable value bands the late night licences exist within the City already.

Once the figures have been established and consultations undertaken, it would be realistic for it to be incorporated into the budget for 2025/26. At present, estimated annual Night Levy revenues for Westminster City Council range from £500,000 upwards.

There is also a case to be made for a London-wide levy which, if implemented, could make an even more significant difference. Furthermore, our survey of businesses’ views on potential solutions suggests some openness to the idea. When asked about the idea of introducing a Late Night Levy, businesses were fairly evenly split, with a small majority in favour. Interestingly, premises that are members of Business Improvement Districts (BIDs), can qualify for a 30 percent discount, which could potentially strengthen the case for the creation of a BID for Soho.

Given the costs of the additional temporary facilities that the Council currently deploys in Soho, one does wonder why the previous administration has not done this already. It would also help the new administration to distinguish itself from its predecessor. More over if the late night levy is operational in Camden Town, City of London, why not in Soho and other urban villages of the City of Westminster. 

 

What is to be expected in Housing in London during 2025 & beyond?

https://www.ft.com/content/68ba72e3-08fa-465e-ab61-cfa94a58382c

Thankfully, some will say, the targets of housing for London have been dropped by 10,000 annually from targets set by the previous government as part of the present new governments 1,500,000 target of new homes. That is a total of 88,000 across the whole of London. Though when broken down to figures for each London borough, most of the increased targets are in Inner Central London towards West London boroughs like WCC, RBKC, H&F and very little emphasis in outer Londoner boroughs except for Bexley. Actually almost all the boroughs in Outer London had their figures reduced, so it can not be said to be impacting much on the green fields of Outer London at all really!

So its quite a bleak picture for housing in London in 2025 and beyond. 

London’s Net Zero efforts – where are we going?

After recently being interviewed by UCL post graduate student Veronica Li about some of the research work undertaken when l was Chair of the Environment at the London Assembly with Plugging the Energy Gap  Report, l wondered about what progress has been made since. . Then we established that London consumed some 16 per cent of all energy in the UK but only supplied 2-3per cent of it. The language has of course changed since then with the emphasis on Net Zero but nonetheless it is a worthwhile exercise. 

When the government was told in July by the independent Climate Change Committee (CCC) that it was falling well short of its “net zero by 2050” climate change target for reducing greenhouse gas emissions that cause global warming, a similar warning about local targets seemed inevitable.

That came earlier this month, with the CCC telling the London Assembly that Sadiq Khan’s even more ambitious target of achieving net zero in London by 2030 was similarly in doubt. Now Khan himself has accepted that his targets are not just at risk but currently unattainable. “As things stand now, we are not on track to meet them,” he admitted yesterday at his November Mayor’s Question Time session.

It was a stark concession from a Mayor who first declared a “climate emergency” back in 2018, brought his original 2050 net zero target forward by 20 years, and has taken a leading role in the C40 network of cities across the world taking forward climate action. Why is City Hall’s target looking unattainable, and what should happen next?

In truth, Khan’s 2030 target always looked like a stretch, relying substantially on action by central government along with encouraging individual Londoners and London businesses to make changes, particularly with heating and transport – swapping boilers for heat pumps and petrol or diesel cars for electric, as well as driving less.

Take “retrofitting”, now a key focus. This means insulating the city’s homes and fitting heat pumps in order to cut the amount of heating they require by 40 per cent. It is essential work, given that around a third of London’s carbon emissions come from its homes, but it’s also expensive.

Around half of the city’s social housing stock alone – council and housing association properties, including Right to Buy homes within blocks – needs to be retrofitted. That’s about 500,000 homes, representing one in seven of all homes in the capital.

Despite Khan promising a “retrofit revolution” in 2021, progress has been sluggish. According to figures from London Councils, the cross-party boroughs’ grouping, just 3,057 social homes were retrofitted in 2022. Meeting the 2030 target would mean increasing the rate of retrofit 15-fold, with a price tag of some £13 billion.

That sort of bill can’t be met by councils and housing associations on their own, and there’s general consensus that national government hasn’t stepped up to the mark. Funding has fallen short and been “stop-start”, according to the local authorities, with councils forced to spend time bidding for cash.

There’s also a shortage of trained people to do the work and an overall fragmented approach, not helped by Rishi Sunak’s administration rolling back deadlines, particularly in the run-up to the general election.

Homeowners too seeking to make their homes more energy efficient have faced a “maze of complex process, confusing regulation and high upfront costs” according to a report last year from the lobby group BusinessLDN. High electricity charges have eaten into cost-effectiveness as well, and there’s also the “hassle” factor. Retrofit can be a big job, and not necessarily seen as a priority without clear government messaging – and a reasonable financial incentive.

Following the change of government, greater Whitehall support is anticipated, including possible multi-year funding settlements for the Mayor and boroughs allocated by need rather than by bidding. This would support what Khan said on Thursday would be a “genuine retrofit revolution”. Energy secretary Ed Miliband has just announced that planning permission requirements which were deterring heat pump installation will be scrapped.

But could City Hall have done more? A report last September from Green Party Assembly member (AM) and now deputy party leader Zack Polanski suggested that although government investment in retrofit remained inadequate, Khan was also dragging his feet, on training and procurement particularly. Recent research for City Hall and London Councils was relatively damning too. It found there was still “no collective strategy” on retrofit across the city “or indeed a means of communicating and gaining consensus”.

Current arrangements, the research said, were resulting in an “unpredictable” pipeline of work, holding back supply chain development, and a “pepper-pot” of uncoordinated projects, with successful pilots generally “under-exploited” and no system for coordinating efforts.

The report’s recommendation that a new “London Office of Retrofit” should be set up, to coordinate and plan retrofit work city-wide, identifying funding, improving the supply chain and speeding up delivery, is now being taken forward by Khan and the boroughs. “All is not lost,” he told AMs yesterday.

Does a missed target matter? Dr James Richardson from Climate Change Committee told the Assembly’s environment committee that getting things done was more important, and there’s certainly a range of action underway. But a target too easily set aside risks undermining the credibility of the policy itself, particularly in an area like climate change which is increasingly contested.

Has the climate change agenda become over-technocratic too, even while the need to win support for action is widely acknowledged? There is a big issue about the language we use all the time as well, as terms such as “net zero” were a phrase that a lot of people would not ever dream of using in their ordinary speech. 

On climate action, it maybe time for a new battle for hearts and minds perhaps?