Anti-money laundering

Information held on the companies register not necessarily reliable

A recent report by the Financial Action Task Force suggested that information held on the companies register was not necessarily reliable.

In the Financial Action Task Force's third mutual evaluation report of the UK's anti-money laundering systems they point out "that information on the companies register is not verified and is not necessarily reliable."

One of the main areas of concern and risk when conducting business relates to anti-money laundering. How do you know the person you are dealing with is the person they claim to be, or whether or not they are the subject of HM Treasury sanctions?

This was highlighted by Worldcheck, which compared the directors' database at Companies House against global sanctions lists and found 4,000 company directors who are listed as global terror suspects or fraudsters.
250,000 companies in the UK have nominee directors running their companies. The Money Laundering Regulations (2007) specifically require all firms to have systems in place to prevent transactions where anonymity is present.

New requirements under the Companies Act 2006 also requires all companies to have at least one director who is a real person, to assist with the potential threat of fraud taking place.

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