LONDON 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 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://uk.reuters.com/article/uk-regulations-agents-insight-idUKKCN0WK17W