Britain suspects russians of using British firms to launder money stolen in Ukraine
Shell companies set up by russian military have been identified
The British government suspects that russian citizens are trying to launder money stolen in Ukraine.
Source. Bloomberg
In particular, British law enforcement agencies have discovered a large number of fictitious companies registered in Britain by citizens of a number of countries in recent years, probably for the purpose of money laundering or tax evasion, anonymous sources said.
Hundreds of these firms list russians as their employees, and some russian-controlled companies are now trying to exploit the war in Ukraine for financial gain, the sources said.
London's financial system allows russians to hide their assets without much scrutiny, Bloomberg writes.
Limited liability companies owned by foreign private individuals, once registered and listed in the official British register, are only occasionally subjected to financial audits, and these are rather superficial.
For example, one of the companies mentioned by Bloomberg is registered at an office address in London and is listed in court registers as the owner of a grain carrier. This vessel is likely to be used to illegally export grain from Ukraine and circumvent international sanctions. In recent months, the vessel has repeatedly passed through the Black Sea.
Three of the company's current and former employees are russian citizens and have indicated their russian home addresses. Neither they nor the company appear to have any activities in London, Bloomberg writes. Sanctions against the company have been discussed but never imposed.
Although Britain has imposed sanctions on many russian companies and individuals since the invasion of Ukraine, the British authorities' longstanding efforts to attract foreign capital have resulted in a financial system riddled with shell companies and other opaque structures, according to the agency's sources.
"I have no doubt that British companies set up a few years ago by foreign nationals are now involved in the looting of Ukraine," Oliver Bullough, author of a book on global money laundering schemes, told Bloomberg.
Background. As a reminder, four Swiss bankers will stand trial: they helped Putin's wallet in money laundering.
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