New measures announced to tackle international money laundering
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Package of transparency and anti-corruption measures to address the
abuse of Scottish Limited Partnerships that has been linked to
money laundering Measures will bring greater transparency and more
stringent checks to those registering a Limited Partnership Annual
filing requirements will ensure Companies House has accurate
information on all UK limited partnerships Measures to increase
transparency and prevent abuse of limited...Request free trial
Measures to increase transparency and prevent abuse of limited partnerships, which some criminals have used to launder dirty money through the UK were unveiled today (10 December), as the government published its response to the consultation on the reform of Limited Partnership law. Scottish Limited Partnerships (SLPs) and Limited Partnerships (LPs) are used by thousands of legitimate British businesses, particularly the private equity and pensions industry, which invest more than £30 billion a year in the UK. However, there are concerns that they are being abused by criminals following large-scale money laundering scandals. Business Minister Kelly Tolhurst said: “The UK has always had world-leading corporate standards making us a dependable place to invest and start and grow a business. We are committed to continually enhancing our business environment and as part of that we constantly keep under review our governance arrangements – making sure that people have confidence in our corporate standards. “These proposals will increase transparency, by ensuring these arrangements can still be used legitimately to invest by pension funds and investors while preventing abuse. “The UK is taking strong action in the international fight against money laundering and today’s proposals will increase best practice amongst businesses.” New filing requirements for all Limited Partnerships will make them more transparent with their information, preventing their abuse while enabling investors to continue to use them legitimately and invest in the UK. The key proposals are:
The proposed reforms will apply to all Limited Partnerships in the UK. In addition to requirements that are in place for Scotland, the reforms will also include new reporting requirements for Limited Partnerships in England, Wales and Northern Ireland. This will confirm that the information they have placed on the register is up to date and correct. Last year, the government introduced laws requiring SLPs to report their beneficial owner and make their ownership structure more transparent, seeing an 80% reduction in the number registered and today’s reforms seek to raise standards further. UK Government Minister Lord Duncan said: “The UK Government continues to take the abuse of Scottish Limited Partnerships very seriously and will do everything necessary to crack down on crime lords exploiting them to launder dirty money.
“This latest package will deliver greater transparency and more stringent checks. It builds on measures we’ve already brought in to close loopholes in their use while ensuring legitimate companies can continue to choose SLPs as a way to invest in the UK. The interest and protection of citizens is of the upmost importance to the UK Government and these reforms will ensure Scotland and the rest of the UK remains a great place to work and invest in.”
The UK is already taking a leading role on the world stage to improve corporate transparency and was recognised by NGO Transparency International as one of only four G20 countries with the highest rating for cracking down on anonymous companies. The UK has worked to improve transparency and tackle money laundering through:
Notes to editors
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