Thursday 22 March 2018 / 5:16 PM Anneliese Dodds / Press Releases

Tories fail to prevent money laundering and miss a potential £2.2bn in fines on tax avoidance schemes – Anneliese Dodds

Tories fail to prevent money laundering and miss a potential £2.2bn in fines on tax avoidance schemes

Labour analysis reveals that despite new legislation, less than half of all Scottish Limited Partnerships have been registered with the UK Government.

These shadowy organisations have often been exposed in money laundering scandals and are, by the Government’s own admission, “remarkably popular with countries such as Russia and Ukraine.”

Figures obtained by Labour’s Anneliese Dodds revealed that only 12,897 SLPs have registered with Companies House, just 43.4% of the 29,709 operating in the UK.

In June 2017, legislation was introduced in the UK which aimed to regulate Scottish Limited Partnerships. The legislation gave owners of SLPs 28 days (from 26 June 2017) to register their beneficial owners or face a daily £500 fine.

Treasury Minister John Glen also confirmed in a letter that no SLPs have been fined or prosecuted as a result of requirements imposed by the regulations, leaving UK taxpayers up to £2.2bn out of pocket.

Anneliese Dodds MP, Labour’s Shadow Treasury Minister, said:

“Only two weeks ago we discovered that no prosecutions had been brought forward as a result of the 2017 criminal offence for failure to prevent money laundering, as yet another sign of the Government failing.

“Time and again we are finding instances where the Government introduce legislation but fail to resource authorities so that they can take action properly.

“We need immediate and robust action to stop the flow of dirty money from Russia and elsewhere into the UK, and that starts by shining the light of transparency on dodgy corporate vehicles like SLPs.

“This is another advert to oligarchs and crooks that the UK is open to business due to the Conservative Government’s failure to use their powers.

“The Government must begin collecting the up to £2.2bn owed in fines, as taxpayers are continuing to lose up to £8.4m each day that action is not taken.”