Peters & Peters

Associate Eamon McCarthy-Keen discusses how the government is targeting Limited Partnerships in an attempt to clamp down on their use in money laundering in the Global Banking & Finance Review

The UK Government plans to introduce reforms to Limited Partnerships (“LPs”), as part of its clampdown on the use of LPs for money laundering, corruption and tax evasion purposes. Scottish LPs (“SLPs”) have been widely linked to international money laundering, in part because of their separate legal personality and, unlike companies, they can be composed entirely of offshore corporate partners. The Government’s reforms include new registration, reporting and transparency requirements for existing and new LPs and a new requirement for LPs to demonstrate a connection with the UK. The proposals will also provide new powers for Companies House to strike off dissolved LPs or LPs no longer carrying on a business. While the reforms are seen as necessary and proportionate, they will increase the administrative burden for existing and new LPs. Read more