Some Shell Companies Sidestep New UK Transparency Rules

Some UK shell companies under offshore control may be skirting new rules which were designed to clamp down on corruption and tax evasion by forcing businesses to reveal their true owners, a Reuters analysis of corporate filings shows. British government officials have heralded the rules, which came into effect last month, as a world-leading transparency move to tackle crime and urged other nations to follow suit. Under the new system, statements which UK companies file when they are set up and on each anniversary of that date showing changes in shareholders or directors are supposed to include details of “Persons with significant control (PSC)”. For most companies this is straightforward. But some owners use nominees or shell companies, which can have legitimate purposes but also can mask international crime, governments and international bodies like the World Bank say.