Reported by Alex Wickham

The UK government suspects Russian nationals have exploited lax checks by the companies register in attempts to launder war profits stolen from Ukraine, according to people familiar with the matter.

British law enforcement agencies have identified large numbers of sham companies incorporated in the UK by nationals from a range of countries in recent years, likely for the purposes of money laundering or tax evasion, the people said, asking not to be named discussing confidential matters. 

Hundreds of those firms list Russians as their officers and some Russian-controlled companies are now trying to exploit the war in Ukraine for financial gain, the people said.

Russians have been prominent among those drawn to the City of London by light-touch regulation that allows them to shelter their assets with little scrutiny. While the UK has imposed wide-ranging sanctions on many Russian companies and individuals since the invasion of Ukraine, the years of courting foreign money have left the British financial system riddled with shell companies and other opaque structures that complicate efforts to enforce restrictions on Russian interests.

Read full report: https://www.bloomberg.com/news/articles/2023-03-10/russian-money-laundering-of-war-profit-suspected-in-london-by-uk-law-enforcement?leadSource=uverify%20wall