A BBC investigation links a little-known type of company to fraud, terrorism and money laundering.
Sanctioned Russian oligarchs from Vladimir Putin's inner circle exploited a UK secrecy loophole left open by the government.
In 2016 and 2017, the government introduced measures that forced almost all UK companies to identify their real owners. ELPs were not covered by these new transparency laws.The BBC has worked with Finance Uncovered to analyse leaked documents and thousands of company records that show how ELPs have become a route to dodge anti-money laundering laws requiring the real owners, or persons of significant control, of UK companies to be disclosed.
Just five companies, known as formation agencies, have been responsible for 1,500 ELPs, with hundreds listed at registered addresses including one above a burrito bar in central London We have established that among those to take advantage of the secrecy of ELPs are members of President Putin's inner circle.These are brothers Arkady and Boris Rotenberg who were the subject of an investigation by a US Senate committee in 2020. It said they had exploited a global web of shell companies to evade US sanctions imposed following the annexation of Crimea in 2014. These companies were used to buy millions of dollars worth of art.
The BBC and Finance Uncovered found that of the 4,500 ELPs formed since 2017, one in four were created by just five UK-based agencies. LAS told the BBC that they "terminated" their services to Always Efficient LLP "in 2017 due to their breach of our Terms & Conditions". After this change in the law around SLPs, leaked documents seen by the BBC show LAS switched its attention to ELPs.
LAS boss Elena Dovzhik said: "We are aware that many years ago we filed registration documents for some companies that eventually were accused in unlawful activities, but such information was not available to us prior registration." This address is home to around 800 active companies. It's one of the most frequently used addresses for ELPs in the country. Over the past five years, more than 240 ELPs have been registered here.
One prolific proxy signatory is Ruth Neidhart, a 71-year-old from Switzerland who lives in Cyprus. She also works as a ceramic artist making porcelain dolls and jewellery, sometimes arranging pottery painting sessions for children's birthday parties. Campaigners say the BBC's revelations about ELPs show that reform of the UK's legal structures is long overdue.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Banned from playing to champions: this viral tweet exposes the sexism the Lionesses have battledA viral tweet is bringing to light the struggles against sexism that England’s top players, including Ellen White and Lucy Bronze, have faced on their journey to become European champions.
Read more »
Leeds man demands apology from Sainsbury’s as he's banned from all its stores'They walked into a cafe when I was having my breakfast and handed me the letter in front of all the customers'
Read more »
Prolific pervert banned from city is returned to jailA persistent pervert who has multiple convictions for exposing his genitals has been returned to prison.
Read more »
Fifteen Leicester City fans banned over Napoli match disorderClashes between supporters broke out at Leicester City's match against the Italian side last year.
Read more »
‘Environmentally friendly’ coffin claims banned by advertising watchdog‘Environmentally friendly’ coffin claims banned by advertising watchdog
Read more »
Eco-friendly coffin claims banned by advertising watchdogFuneral packages advertising MDF coffins misled consumers, the Advertising Standards Authority says.
Read more »