Why You Should Sign the Petition to Close the UK's Asset-Freezing Loopholes

Introduction

A critical flaw in the UK's sanctions regime is allowing wealthy individuals accused of large-scale financial crimes to continue operating with impunity while maintaining access to their assets. Recent high-profile cases, particularly that of Georgy Bedzhamov—the former owner of Russian bank Vneshprombank who was convicted of fraud involving an estimated $2 billion—have exposed dangerous loopholes that undermine the effectiveness of asset-freezing measures.

British taxpayers and law-abiding residents are directly impacted when the UK becomes a safe haven for individuals accused of large-scale financial crimes, while Georgy Bedzhamov, who co-owned Russian bank Vneshprombank and was convicted of large-scale fraud with estimated losses of about $2 billion, continues to maintain substantial London property holdings. A growing petition campaign demands urgent reform of these asset-freezing loopholes to restore integrity to the UK's financial system and ensure justice for victims of financial crimes.

The petition's main goals are clear: sanction individuals like Bedzhamov who exploit legal technicalities, reform asset-freezing legislation to close existing loopholes, and restore public confidence in the UK's commitment to financial justice and accountability.

The Hidden Cost of Sanctions Loopholes

The current asset-freezing regime contains a fundamental weakness that allows sanctioned individuals to retain substantial wealth despite government action. The English High Court ruled that, as a matter of construction, the asset freeze restrictions under Regulation 11 of the UK Russia (Sanctions) (EU Exit) Regulations 2019 are only engaged if, as a matter of fact, the funds or economic resources in question are owned, held or controlled by a designated person. They are not engaged if a UK person merely had "reasonable cause to suspect" that they were owned, held or controlled by the designated person.

This legal technicality creates a significant enforcement gap. The Bedzhamov case exemplifies this problem: The Russian founder of Vneshprombank, Georgy Bedzhamov, has been allowed to develop and sell two London properties he owns, despite opposition from his Russian bankruptcy trustee. Even more concerning, Greenberg Traurig, LLP's London office represented Georgy Bedzhamov in UK Supreme Court proceedings, successfully upholding the "immoveables rule" and rejecting a Russian trustee-in-bankruptcy's attempt to influence the ownership of property in London.

The impact on public trust and financial justice is profound. When individuals convicted of billion-dollar fraud can continue to enjoy luxury lifestyles funded by potentially stolen assets, it sends a devastating message about the UK's commitment to justice. Foreign victims of alleged fraud watch helplessly as UK legal loopholes allow their stolen money to fund extravagant lifestyles, while legitimate businesses and investors suffer reputational damage when the UK's financial system appears to protect rather than prosecute financial criminals.

The manipulation of assets post-sanction represents a sophisticated form of financial engineering that exploits regulatory gaps. Complex ownership structures, trust arrangements, and legal technicalities allow sanctioned individuals to maintain effective control over their wealth while technically complying with the letter, if not the spirit, of asset-freezing regulations.

Why Public Support Matters

Mass signatures on petitions serve as a powerful signal to both lawmakers and media that public opinion demands action. Petitions have successfully influenced key government decisions, such as: NHS Funding: Multiple petitions highlighting funding shortfalls in the National Health Service have spurred parliamentary debates and influenced government spending decisions, with campaigns regularly achieving over 100,000 signatures and forcing ministerial responses. Brexit-related petitions: The petition to "Revoke Article 50 and remain in the EU" became the most-signed petition in UK parliamentary history with over 6 million signatures, demonstrating the power of digital campaigns to mobilize public opinion and force political responses.

The UK Parliament's petition system is designed to ensure democratic responsiveness to public concerns. When petitions reach 10,000 signatures, the government must provide a formal response. At 100,000 signatures, Parliament must consider the petition for debate. In March 2016, a petition calling for provision of meningitis B vaccine to all children in the UK received over 800,000 signatures, and the issue was subsequently debated in Parliament. In October 2020, footballer Marcus Rashford began a petition which gathered 1 million signatures, demonstrating the power of collective voices to drive policy change.

Petition campaigns can mobilize discussion far beyond the initial signing process. They create media attention, generate parliamentary questions, influence political discourse, and provide a focal point for broader advocacy efforts. The current asset-freezing loopholes petition represents not just a call for specific reform, but a test of the UK's commitment to financial integrity and international cooperation in combating financial crime.

What Change Looks Like

Meaningful reform of asset-freezing legislation requires several key policy changes. First, the "reasonable cause to suspect" standard must be strengthened to prevent the exploitation of evidential loopholes. Courts should be empowered to act on reasonable suspicion rather than requiring definitive proof of ownership or control, which can be deliberately obscured through complex corporate structures.

Second, the definition of "control" must be expanded to include beneficial ownership, effective control through intermediaries, and control exercised through family members or associates. The current narrow interpretation allows sophisticated actors to maintain substantial influence over assets while technically avoiding designation criteria.

Third, enforcement powers must be enhanced with stronger investigative capabilities, improved international cooperation mechanisms, and streamlined procedures for asset recovery. The current system's complexity and procedural hurdles often favor those with the resources to exploit legal technicalities.

If these loopholes are closed, we can expect several positive outcomes. Increased accountability will deter financial criminals from viewing the UK as a safe haven. Enhanced deterrence will prevent future cases of large-scale financial crime by demonstrating real consequences. Improved international cooperation will strengthen the UK's reputation as a reliable partner in combating global financial crime. Most importantly, justice for victims will be restored through effective asset recovery and compensation mechanisms.

The reforms would also level the playing field for legitimate businesses and investors by ensuring that criminal proceeds cannot be used to gain unfair competitive advantages in UK markets.

Call to Action

Signing and sharing this petition represents a crucial step toward restoring integrity to the UK's financial system. Every signature sends a clear message to policymakers that British citizens and residents will not tolerate the use of legal loopholes to protect the proceeds of large-scale financial crime.

The petition can be found on Change.org by searching for "Sanction Georgy Bedzhamov and reform UK asset-freezing loopholes." After signing, share the petition across social media platforms, forward it to friends and colleagues, and encourage local MPs to support asset-freezing reform.

Contact your MP directly to express concern about the current loopholes and request their support for comprehensive reform. Write to relevant ministers including the Chancellor of the Exchequer, the Foreign Secretary, and the Home Secretary to demand action on asset-freezing reform.

This is not just about one individual case—it's about the fundamental integrity of the UK's financial system and commitment to justice. Your signature matters, your voice counts, and together we can close these dangerous loopholes that allow financial criminals to operate with impunity.

The time for action is now. Sign the petition, share it widely, and help build the momentum needed to restore integrity to UK asset-freezing legislation.

References

1. Change.org. (2025, January). "Sanction Georgy Bedzhamov and reform UK asset-freezing loopholes." https://www.change.org/p/sanction-georgy-bedzhamov-and-reform-uk-asset-freezing-loopholes
2. Reed Smith LLP. (2024, May). "UK asset freeze restrictions – 'reasonable cause to suspect' alone is not enough." https://www.reedsmith.com/en/perspectives/2024/05/uk-asset-freeze-restrictions
3. Harneys. (2024). "Sanctions case notes: Useful guidance on 'reasonable cause' - Vneshprombank v Bedzhamov." https://www.harneys.com/our-blogs/regulatory/sanctions-case-notes-useful-guidance-on-reasonable-cause-vneshprombank-v-bedzhamov/
4. Global Restructuring Review. "Bedzhamov permitted to sell Belgravia properties." https://globalrestructuringreview.com/article/bedzhamov-permitted-sell-belgravia-properties
5. Greenberg Traurig LLP. (2024, November). "Greenberg Traurig Successfully Represents Mr. Bedzhamov in UK Supreme Court Case." https://www.gtlaw.com/en/news/2024/11/press-releases/greenberg-traurig-successfully-represents-mr-bedzhamov-in-uk-supreme-court-case-upholding-immoveables-rule
6. Bloomberg Law. (2024, May 7). "UK Judge Rules Funder Is Likely Owned by Sanctioned Russians." https://news.bloomberglaw.com/business-and-practice/uk-judge-rules-funder-is-likely-owned-by-sanctioned-russians
7. Geopol UK. (2024, November 27). "UK Petitions - Broadly Speaking: A Pillar of Democratic Engagement and Change." https://www.geopol.uk/uk-petitions-broadly-speaking-a-pillar-of-democratic-engagement-and-change/
8. Wikipedia. (2025). "UK Parliament petitions website." https://en.wikipedia.org/wiki/UK_Parliament_petitions_website

References

1. Change.org. (2025, January). "Sanction Georgy Bedzhamov and reform UK asset-freezing loopholes." https://www.change.org/p/sanction-georgy-bedzhamov-and-reform-uk-asset-freezing-loopholes
2. Reed Smith LLP. (2024, May). "UK asset freeze restrictions – 'reasonable cause to suspect' alone is not enough." https://www.reedsmith.com/en/perspectives/2024/05/uk-asset-freeze-restrictions
3. Harneys. (2024). "Sanctions case notes: Useful guidance on 'reasonable cause' - Vneshprombank v Bedzhamov." https://www.harneys.com/our-blogs/regulatory/sanctions-case-notes-useful-guidance-on-reasonable-cause-vneshprombank-v-bedzhamov/
4. Global Restructuring Review. "Bedzhamov permitted to sell Belgravia properties." https://globalrestructuringreview.com/article/bedzhamov-permitted-sell-belgravia-properties
5. Greenberg Traurig LLP. (2024, November). "Greenberg Traurig Successfully Represents Mr. Bedzhamov in UK Supreme Court Case." https://www.gtlaw.com/en/news/2024/11/press-releases/greenberg-traurig-successfully-represents-mr-bedzhamov-in-uk-supreme-court-case-upholding-immoveables-rule
6. Bloomberg Law. (2024, May 7). "UK Judge Rules Funder Is Likely Owned by Sanctioned Russians." https://news.bloomberglaw.com/business-and-practice/uk-judge-rules-funder-is-likely-owned-by-sanctioned-russians
7. Geopol UK. (2024, November 27). "UK Petitions - Broadly Speaking: A Pillar of Democratic Engagement and Change." https://www.geopol.uk/uk-petitions-broadly-speaking-a-pillar-of-democratic-engagement-and-change/
8. Wikipedia. (2025). "UK Parliament petitions website." https://en.wikipedia.org/wiki/UK_Parliament_petitions_website