Money Laundering -SLPs

The UK government has unveiled plans to close loopholes around Scottish Limited Partnerships (SLPs) which have been abused to launder dirty foreign money.

Thousands of businesses in Britain use limited partnerships and SLPs legally. However government research suggests that they have been exploited in complex money laundering schemes. These limited partnerships have also been linked to international criminal networks in Eastern Europe and possibly been used in arms deals.

Scottish Limited Partnerships?

An SLP is one that is formed by at least two partners, one of which must be a general partner, who is liable for any debts incurred, and one limited partner, who has limited liability but cannot play a role in how the partnership is run.

The SLP has been used in recent times for modern business purposes such as private equity and property investment fund structures.  SLPs differ to elsewhere in the UK as they have “legal personality”, which allows them to own property, enter into contracts or take on debts

New government proposals

Under new proposals, users will need to have a real connection to the UK and do business or maintain an address in Scotland to operate an SLP.

They will also need to register through an agent who will carry out anti-laundering checks.

See the story from the BBC here;

http://www.bbc.co.uk/news/uk-scotland-scotland-business-43935839