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Crackdown on abuse of UK businesses for foreign money laundering

Staff Writer |
Measures to crack down on the abuse of a specialised financial arrangement to launder dirty foreign money through the UK are part of a package of government reforms.

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Scottish Limited Partnerships (SLPs) and Limited Partnerships (LPs) are used by thousands of legitimate British businesses, particularly the private equity and pensions industry, to invest more than £30 billion a year in the UK.

SLPs and LPs are business entities created by two or more partners where at least one partner is liable for what they invest.

However, evidence shows the growing evidence SLPs have been exploited in complex money laundering schemes, including one which involved using over 100 SLPs to move up to $80 billion out of Russia.

They have also been linked to international criminal networks in Eastern Europe and around the world, and have allegedly been used in arms deals.

5 frontmen were responsible for over half of 6,800 SLPs registered between January 2016 and mid-May 2017. By June 2017, 17,000 SLPs, over half of all SLPs, were registered at just 10 addresses.

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