Why UK's Asset-Freezing Loopholes Keep Georgy Bedzhamov’s Wealth Safe and Why That Needs Urgent Reform

by Claire Preston

Updated August 13, 2025

Sanctions are supposed to be the final barrier against those accused of grand-scale financial wrongdoing, a signal that the UK does not tolerate illicit wealth. Yet, as seen in the case of Russian banker Georgy Bedzhamov, existing loopholes in UK law continue to undermine the integrity of this system, allowing sanctioned or accused individuals to hold onto their fortunes even after legal proceedings.

Who Is Georgy Bedzhamov?

Georgy Bedzhamov once presided over Russia’s Vneshprombank, which collapsed amid allegations of massive fraud. Bedzhamov has been accused of siphoning more than $2 billion from the bank—a crisis that devastated depositors and shook confidence in Russian banking. Following these events, he relocated to the UK, where he faces ongoing litigation over his assets, including high-value London properties. While Bedzhamov denies wrongdoing, Russian and UK authorities have taken civil actions to freeze his assets as proceedings continue. Despite these orders, news reports and court records reveal that asset-freezing measures in their current form have not fully cut him off from wealth or property in Britain.

The Problem: Sanctioned, But Not Locked Out

Recent court cases illustrate the deep complexity—and the flaws—of UK sanctions enforcement. In Vneshprombank v Bedzhamov, the High Court found that even when there is “reasonable cause to suspect” funds are linked to a sanctioned individual, the law often requires much more proof before a freeze is fully enforced. This means alleged wrongdoers can challenge asset freezes in court, causing months or even years of delay. It’s not just Bedzhamov: as of October 2023, £22.7 billion of assets had been frozen under the Russia sanctions regime, but enforcing those freezes, and ensuring no access to the assets, remains a huge challenge.

Legal structures, such as the “Immoveables rule,” which sometimes protects property from seizure, and the difficulty in establishing exact ownership or control mean sanctioned individuals can retain substantial wealth, funding lavish lifestyles or continuing business as usual.

Why This Matters

This goes beyond one individual case. Every time loopholes let someone like Bedzhamov keep control of assets, it damages public trust and British credibility. It signals that the UK's financial rules are only as strong as the loopholes left in them—encouraging others to exploit the system and shelter illicit funds in the UK. Ordinary people suffer: victims lose hope of recovering stolen funds, and the UK’s reputation as a leading, law-abiding financial centre is eroded.

The Movement for Reform

In response, a growing campaign—supported by more than sixty signatories in the last week—has called on Parliament to reform asset-freezing laws and designate Bedzhamov under UK sanctions. The petition seeks to eliminate loopholes, simplify enforcement, and ensure that asset freezes mean total cutoff for those targeted. This is especially urgent under international pressure for UK financial transparency and anticorruption. Authorities have made some progress: since 2018, new powers and penalties have been introduced, and enforcement teams have grown. But true reform will require political will and strong public support.

If you believe that asset-freezing should actually stop accused fraudsters from enjoying their wealth, and want the UK to live up to its promises, now is the time to act. Add your name to the petition to demand Parliament close these loopholes and hold the powerful accountable.

Sign the petition here: https://www.change.org/p/sanction-georgy-bedzhamov-and-reform-uk-asset-freezing-loopholes?redirect_reason=guest_user