{"id":37638,"date":"2017-06-24T20:41:25","date_gmt":"2017-06-24T19:41:25","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=37638"},"modified":"2017-06-24T20:41:25","modified_gmt":"2017-06-24T19:41:25","slug":"there-were-more-scottish-limited-partnerships-set-up-last-year-than-in-a-preceding-century","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2017\/06\/24\/there-were-more-scottish-limited-partnerships-set-up-last-year-than-in-a-preceding-century\/","title":{"rendered":"There were more Scottish Limited Partnerships set up last year than in a preceding century"},"content":{"rendered":"

I share this press release from Transparency International<\/a>, which I think is really important, whilst adding that this is not within the control of the Scottish government:<\/em><\/p>\n

24th<\/sup> June 2017, London \u2014 <\/em>The UK\u2019s failure to reveal the true owners of Scottish Limited Partnerships (SLPs), has so far left the UK open to corrupt money launderers. By seeking to reveal who the real owners of SLPs are, the UK is making a positive step towards ending its role as a safe haven for corrupt money, as well as meeting a key EU deadline.<\/p>\n

The Government had been expected to miss the June 26th deadline, but has instead bypassed parliamentary rules that requires a 21 day period of parliamentary consideration, to push through the necessary legislation.<\/p>\n

Scottish Limited Partnerships have unique features which mean they can be used as shell companies to help launder money and provide what appears to be a \u2018respectable\u2019 UK front to illicit activity. They have been at the centre of numerous global corruption scandals including over 100 used in the Global Laundromat<\/em>, in which up to $80bn may have been laundered out of Russia.<\/p>\n

Research from Transparency International <\/em>and Bellingcat<\/em> has found that in 2016, as other options for money launderers have narrowed, 5,215 SLP\u2019s were registered, despite 1,000 fewer being set up in the entire preceding 100 years. In fact 71% of those registered last year were controlled by companies based in secrecy jurisdictions, such as Belize and Seychelles \u2014 a corporate structure favoured by money launderers.<\/p>\n

Duncan Hames, Director Transparency International UK, said:<\/strong><\/p>\n

\u201cWe have seen how Scottish Limited Partnerships are being used as the UK\u2019s home-grown corporate secrecy vehicle. They allow corrupt individuals to hide their real identity when laundering vast sums of money out of the country they have stolen from, by assuming the respectability of a UK incorporated legal entity. The abuse of these partnerships is a global problem that can have devastating effects on populations who have had their natural resources or state budgets emptied.\u201d\u201d<\/em><\/p>\n

\u201cWhilst other avenues for corrupt individuals to launder the proceeds of corruption have been tightened, Scottish Limited Partnerships have emerged as a key weakness in the UK\u2019s defences against money laundering. Criminals are adapting their behaviour to keep their activity hidden, so it is vital that the UK Government is alert to their methods and disrupt them .\u201d<\/em><\/p>\n

\u201cWe have campaigned on this as part of our broader efforts to end the UK\u2019s role as a safe haven for corrupt individuals from around the world. Earlier this year we submitted evidence to a Government consultation on Scottish Limited Partnerships, and we are glad that the Government has now begun to make the necessary changes.\u201d<\/em><\/p><\/blockquote>\n

Key Stats:<\/strong><\/p>\n