Industry supports new money laundering rules for Scottish LPs

Anti-money laundering verification platform, SmartDiligence, has welcomed government plans to reform legislation governing the use of Scottish Limited Partnerships.

The National Crime Agency recently identified a disproportionately high volume of suspected criminal activity involving Scottish limited partnerships.

Government figures estimate that up to half of all SLPs are being used to launder dirty money and one money laundering scheme reportedly used more than 100 SLPs to move $80 billion out of Russia.

Transparency International’s report ‘Offshore in the UK’ found that just five ‘frontmen’ were responsible for more than half of the 6,800 SLPs registered between January 2016 May 2017, and that half of all SLPs are registered at just 10 addresses.

SmartDiligence noted that unlike most investment vehicles, Scottish Limited Partnerships have their own legal 'personalities' which means they can hold assets, borrow money from banks and enter into contracts in their own right, and welcomes the tougher rules.

Read the full article in the Financial Reporter here.