I've now watched last night's Panorama.
I found the editing a little annoying.
I think the investigation diligent and accurate.
I have worked on the issue of tax haven secrecy for a long time, with Global Witness amongst others, and was pleased to see them in the programme.
More though, I was pleased to see something I have been sure to be widespread so well exposed.
It is time to ensure that all companies, trusts, foundations and other entities created by law anywhere in the world are properly documented so that their real owners , managers and beneficiaries can be identified for the benefit of not just regulatory agencies but all who deal with them.
Without being able to do so crime, onshore and offshjore, will flourish. No wonder we have a £70 billion tax evasion problem in this country.
And it's time HMRC did its job in regulating corporate service providers properly. None have ever been prosecuted. Which is yet another indictment of the failure of HMRC top management.
And it's time the Department for Business, Innovation and Skills ran Companies House properly, something I have long evidenced, because as the programme suggested, this looks like the tip of the iceberg of abuse.
Please watch the programme.
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Am I right in thinking that the UK does not register Corporate Service Providers. / Formation Agents at all?
Fiduciary service providers in Guernsey are very extensively regulated in Guernsey, with several having had their licences revoked over the past 3 or 4 years, and with their principals banned from working in a senior position in any regulated financial services provider. Loss of livelihood, plus risk of a long jail sentence, are pretty strong deterrents.
The UK does regulate them via HMRC
Not well enough though, it is fair to say
I think offshore is ahead here, notionally at least. I have to acknowledge it
Thanks Richard
I’m intrigued though how they could be regulated by HMRC, who are not financial services regulators. There’s no way, for example, that the Guernsey Income Tax Office could attempt to regulate fiduciary service providers when it comes to application of AML legislation, corporate governance procedures and the raft of other requirements that apply to us.
Because they are…..
Don’t ask me to explain why
I tend to agree, it’s bizarre
It was certainly a very interesting program and there were definitely some very dubious characters involved. However I assume that these aren’t the only companies they contacted, so it would be useful to know (to get it into perspective) how many companies weren’t so obliging.
Whilst some people appeared ready to go ahead and actively encourage money laundering I also wonder if any of the people shown simply weren’t confronting the individual. If somebody comes to you and makes it pretty obvious they are going to money launder you are surely required to file an anti-money laundering report, but if you make it obvious to the individual that you view it as money laundering and must therefore file a report, isn’t that tipping off, which is itself an offence? Actually it would be interesting to know how many organisations (particularly ones not seen in the show) filed a report after the meeting. Unfortunately this is something we will never know.
The biggest issue covered is that most regulators are mere box tickers who aren’t actually examining anything properly and that most anti-money laundering processes are little more than paper shuffling. What money-launderer doesn’t have a utility bill and passport?
One thing I was waiting for was the number of private healthcare companies which hide their finances offshore. However, it was only a half-hour programme.
At the moment there is an early day motion going through parliament to make private healthcare companies subject to the Freedom of Information Act, which should help in this regard.
There are only 8 MPs signed up to it so far, so please ask your MPs to sign up to it.
There is a website called theyworkforyou where you can link directly to your MP.
Companies House. Talking to our plumber on Friday who had some horror stories about property improvement and eco cowboy companies he agreed that there was one key element to the rackets going on. It is to set up a company, skip putting in the accounts and then let it be closed. During this time those involved are running around doing work, a lot of it with grants, and are distinctly cowboy outfits. So when things go wrong or need to be put right the company hired no longer exists and its former owners are to be found in yet another such company and cannot be touched. One key reason is that when a company is closed then compliance issues cease. Another is that proving “fraud” is just about impossible.
I was sad to see that the BBC made it all the way to Sark and didn’t visit the Barclay brothers’ castle on Brecqhou and ask them some serious questions about their company structures (most ultimately under ownership of companies in the BVI, Bermuda, or Jersey), their personal tax status (registered in Monaco), and their attempt at suing the HMRC for £1bn.
With all the issues highlighted recently there is a real danger that by expanding the argument we fail to change anything. Whoever is responsible for the “status quo” applies divide and conquer to their ultimate benefit.
I have sympathy with that
Mind you, I don’t think you’re advocating revolution
OK – priorities it is!