TI Report Suggests That London Is Haven For Money Launderers

by Robin Pilgrim, LawAndTax-News.com, London

01 November 2004

A report published by anti-corruption organisation, Transparency International on Friday has suggested that the United Kingdom represents a haven for money launderers.

The TI report expressed particular concern with regard to the government's failure to regulate those who operate so-called "shell companies", arguing that:

"It seems to us unconscionable that the UK crown dependencies and overseas territories have been pushed to introduce legislation, yet the UK itself still lacks definitive plans to do so."

Transparency International highlighted two areas relating to companies that it considers are in need of radical change, namely, the continued use of directors who are themselves companies, and the use of bearer share companies.

The report explained that: "Whilst the UK does not itself generally permit bearer share companies, the international community has failed to take decisive action against such shares. The UK must push internationally for such shares to either be banned or at least immobilised."

The report further urged the UK authorities to introduce "a regulatory regime for those who perform specified services for companies or trusts (service providers)," going on to add:

"This may either be achieved by utilising the existing regime for financial services, namely the FSA, or by the creation of a new regulator to specifically cover these activities. In either case, the new regime must be backed by adequate resources."

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