Oligarchs are being targeted by a new register which came into force.
The true owners of UK land and property will need to be revealed.
If foreign companies don't reveal their true owner, they could be fined up to £2,500 per day or five years in prison.
Economic sanctions were imposed in response to the Russian invasion of Ukraine.
Foreign organizations that own land in the UK will have to register their beneficial owners for six months.
The minister said that the UK is a place for legitimate business only and that we need to know who owns what.
We are cracking down on those who attempt to hide their wealth by getting this first of its kind register up and running quickly.
In response to Russia's invasion of Ukraine, the register was included in the bill.
The bill proposes that anyone setting up, running, owning or controlling a company in the UK should be able to verify their identity with Companies House, a government agency.
Property bought in England and Wales after January 1999 is included in the register.
Margaret Hodge is a Labour Member of Parliament.
She called on the government to put in place an open register of the true owners of UK land and property, not just those owned by companies.
Anything less would show that the government is soft on money.
The legislation for the register was first announced on February 28, 2022.
There are multi-million pound country manors in the south of England, as well as luxury flats in London's most expensive areas, which have been linked to the Putin regime.