SLPs, often fronting for binary options firms, get no fines for not disclosing owners’ info

Maria Nikolova

More than a year after the new rules for Scottish Limited Partnerships came into force, no fines have been imposed for violating the requirements to disclose information about the Persons of Significant Control.

More than a year has passed since the new rules that require from Scottish Limited Partnerships (SLPs) to report their Persons with Significant Control came into force. The rules aim to increase transparency and to reduce the likelihood that SLPs are used for criminal purposes, as they are often used as shell entities that launder money. Furthermore, some of them have been found to be fronting for binary options brokers.

As per the new rules, SLPs that fail to comply, faced penalties. But the risk of an SLP actually getting a fine appears to be close to zero.

Alison Thewliss, an MP of the Scottish National Party, has asked the Secretary of State for Business, Energy and Industrial Strategy, how many fines have been levied against Scottish Limited Partnerships for failing to register a Person of Significant Control in each month since the relevant regulations came into force.

Earlier this week, Andrew Griffiths, an MP of the Conservatives, gave a pretty straightforward answer:

“No Scottish Limited Partnerships (SLPs) have been fined since the People with Significant Control register came into force”.

Mr Griffiths explained that Companies House’s primary aim is compliance rather than prosecution.

“It is taking action to ensure that all SLPs report their PSC information. Companies House is actively engaged with SLPs and their representatives to make them aware of their responsibilities, and in addition, it has issued reminder letters to all SLPs who have failed to file PSC information”, he says.

“Failure to comply with the requirement to report PSC information does not incur a civil penalty but it is an offence and may lead to result in a fine or imprisonment upon prosecution. Companies House is not a prosecuting body and will refers cases to a relevant prosecutor when all other avenues have been exhausted and an SLP has not complied with their obligations”, Mr Griffiths adds.

Let’s recall that in November last year, Margot James gave pretty much the same answer to the question about the fines on non-compliant SLPs.

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