The financial sector is of critical importance tothe UK economy. It is because of this that money laundering,especially at the higher end involving the laundering of significantamounts of illicit funds through the financial and professionalservices industries, is a particular concern.
Here at London Registrars, we constantly strive toensure we are playing our part in stopping the flow of illicitfinances arising from criminal activity both at home and overseas.
Why is money laundering a particularthreat in the UK?
The UK takes pride in offering an active anddynamic environment in which to set up a business, with relativelyfew restrictions on entrepreneurs and business owners.
However, it is also the sheer ease with which onecan establish a UK business that has long proved a magnet forcriminals. Wrongdoers are motivated to set up companies – both inthe UK and abroad – that are seemingly legitimate at first glance,but which actually serve mainly as mechanisms for the laundering ofillicit funds.
Criminals also regularly seize upon the lucrativeproperty market in the UK, especially in London. Money laundered inthis part of the world frequently represents the proceeds of crimethat occurred in another country, with major financial centres beingalluring transit points or destinations for these proceeds.
When criminal money is detected flowing in largevolumes through the UK, authorities in the UK, EU and US can chooseto take action with criminal and regulatory penalties. This, however,could increase the chances of major financial institutions collapsingor ending their presence in the UK.
Almost all high-end money laundering, as well asmuch cash-based money laundering, is made possible by the abuse oflegitimate services and processes. A small minority of people canpose a profound threat to national financial systems by takingadvantage of unwitting, negligent or even complicit professionals insuch fields as accounting, the law, and real estate.
Money launderers often assume roles asintermediaries. In doing so, they may draft documentation,disseminate funds, and facilitate the creation of highlysophisticated structures for the movement and storage of largevolumes of illicit funds, while making it difficult to ascertain whoactually owns this money.
The diligent anti-money-launderingpolicies of London Registrars
The aforementioned issues help explain why, in ourcore services of assisting with the incorporation of new companiesand offering companysecretarial subscriptions, our own business has to remainvigilant and adhere strictly to the latest anti-money-launderingregulations. This includes undertaking such sensitive tasks ascarefully checking IDs and proof of addresses before accepting newclients.
To learn more about the wide range of measures weadopt to help guard against illegal activity, as well as to discussthe business formation and support solutions from which you couldbenefit, please don’t wait any longer to getin touch with the London Registrars team.
