British government efforts to crack down on money laundering and fraud through UK businesses are failing to tackle a key area – the role of company formation agents – a Reuters study of the sector shows.
Some formation agents, who typically offer to create new businesses for fees of about 200 pounds ($288) or less, fail to perform significant due diligence on who their customers are or why they are buying new companies, according to lawyers. The agents offer to set up companies within a day or even a few hours, allowing time for only minimal checks.
The weaknesses of the system make it vulnerable to abuse. A Reuters analysis of bank transaction data gives a unique insight into how newly-formed UK businesses were used to conceal huge…
Read the full article at: http://www.reuters.com/article/us-regulations-agents-insight-idUSKCN0WK18A