Every year, formation agents register tens of thousands of companies in London. While many are used for legal purposes, some are vehicles for serious financial crimes like money laundering, sanctions-busting and fraud. In this explainer, we look at how formation agents work and how they can be misused by criminals.
London is one of the biggest financial centers in the world, and it is becoming an increasingly attractive place for criminals to hide their wealth, says David Clarke, the chairman of the U.K.'s Fraud Advisory Panel and former director of the National Fraud Intelligence Bureau.