It has been claimed that Scottish Limited Partnerships have been a proven way for money launderers to carry out their nefarious activities.

Under the new regulations, 30,000 SLPs will need to disclose their beneficial owners within the next 28 days, or face the prospect of being fined. Those that do not comply could see themselves being fined up to £500 per day.

SLPs have a unique legal standing in Scotland, being allowed to hold assets and borrow money, as well as not disclose their ultimate owner. 71% of all SLPs have been registered in secrecy jurisdictions. These make them particularly appealing to criminal entities and money launderers. Transparency International has recently reported that 113 SLPs were involved in the Russian global laundromat scandal.

Lawmakers in Scotland have been calling for stricter legislation on the control of SLPs which are controlled under UK Government law.

Read the full story on OCCRP:

New UK Laws Combat Money Laundering Through Scottish Limited Partnerships

New UK legislation goes into effect Monday regulating Scottish Limited Partnerships (SLPs), a unique corporate structure that has been increasingly abused by money launderers.

about encompass

Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.

want to turn regulation compliance
in to a competitive advantage?

Contact us today to arrange your personalised consultation of encompass. Discover how our KYC automation software can help your business accelerate onboarding and give you peace of mind that you are regulator ready.