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Jordans

TRUST AND CORPORATE SERVICES INDUSTRY UNDER THREAT FROM NEW SUPERVISORY REGIME

HMRC supervision of Money Laundering Regulations 2007 is “potentially damaging” to the UK, warns Jordans Internationa 

The UK‘s fast-growing trust and corporate services industry could be damaged by a supervisory regime introduced under recent anti-money laundering legislation, it was claimed today.

Jordans International Limited, which incorporates and administers UK and offshore companies and trusts for overseas entrepreneurs and investors requiring taxation, accountancy and administration advice, has warned that a key element of the Money Laundering Regulations (the “Regulations”) 2007 is seriously flawed.

Martin Palmer, Director of Jordans International, says it is “counter-intuitive” and “potentially damaging” that UK corporate and tax structures set up in the UK for international clients, are subject to supervision by Her Majesty‘s Revenue and Customs (HMRC). 

And he warns that the situation could persuade professional advisers based overseas to turn away from the UK and “look elsewhere” for alternative offshore domiciles for their clients.

Partly to avoid this scenario, Jordans International Limited has recently gained Practice Assurance accreditation from one of the UK‘s pre-eminent professional bodies, the Institute of Chartered Accountants in England and Wales (ICAEW). 

“The majority of UK trusts and company service providers will, as a result of the Regulations, be supervised for compliance by HMRC,” says Martin Palmer. 

“It is a cause for real concern that a tax collection authority has been given the task of supervising and inspecting for Regulatory purposes businesses which set up confidential, tax-driven structures for lawful tax mitigation purposes on behalf of their clients.

“HMRC will clearly be perceived to have an obvious conflict of interest, and the fact that the regulations enable HMRC Commissioners to enter, inspect and remove files without independent authorisation must be a matter for concern”. 

“The employment of HMRC as the supervisor for this industry sector is potentially damaging to trust or corporate service providers, who are not regulated, as Jordans International is, by one of the professional bodies set out in Schedule 3 of the Regulations.

“Practice Assurance of Jordans International‘s operations in the UK by the ICAEW reflects the growing importance of our accounting and tax-related services, and makes the Institute a supervisor for the purposes of the Money Laundering Regulations 2007 which commands the confidence of our clients.”

He adds: “However good the services of the UK trust or company services industry, if there is a widespread perception that it is substantially supervised by HMRC, this will not be in the country‘s interests.

“Hard-headed professional advisors in the world‘s leading financial centres may look elsewhere for corporate structures to jurisdictions where business and personal confidentiality is properly protected by the courts.” 

ENDS             20th May 2008

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk  

Note to editors

The full list of professional bodies listed in Schedule 3 of the Money Laundering Regulations 2007 is as follows:

Association of Chartered Certified Accountants

Council for Licensed Conveyancers

Faculty of Advocates

General Council of the Bar

General Council of the Bar of Northern Ireland

Institute of Chartered Accountants in England and Wales

Institute of Chartered Accountants in Ireland

Institute of Chartered Accountants of Scotland

Law Society

Law Society of Scotland

Law Society of Northern Ireland

Association of Accounting Technicians

Association of International Accountants

Association of Taxation Technicians

Chartered Institute of Management Accountants

Chartered Institute of Public Finance and Accountancy

Chartered Institute of Taxation

Faculty Office of the Archbishop of Canterbury

Insolvency Practitioners Association

Institute of Certified Bookkeepers

Institute of Financial Accountants

 

Jordans Limited has been providing professional business services for over 140 years. These services now include company formations and administration in the UK and internationally, business information and conveyancing support. 

Jordans have been offering company formations for all of its 140 years.  As well as forming all types of companies, they provide software – Incorporator - for clients who undertake volume formations and PCSec, a software package which helps company secretaries administer their companies.

Jordans have been providing international corporate services for many years. With offices in Bristol, London and five offshore locations (Jersey, Gibraltar, Cyprus, British Virgin Islands and Seychelles) Jordans Ltd is able to provide full UK and international support for their clients.  International services include setting up UK or offshore companies and trusts, company management and professional trusteeship.

Jordans‘ business information services include company searches, data sales (either large or small batches of data on companies and directors) and three branded products – JordanWatch, a database of information and reports on companies, NameGuard, a company name-watching service, and KYC (Know Your Client) Reports used for anti-money laundering information. 

Jordans Limited has been in the property search business for 30 years and has been offering online search ordering for several years.  Their service spans more than 70 different searches, ranging from all the standard searches, including local authority, drainage and environmental, to the many special requirements for individual properties and localities, such as searches for mining, transport and chancel repair.

Jordans has over 100 years of conveyancing experience and is one of only three National Land Information Search channels providing local authority searches electronically. The company offers a comprehensive HIPs package, delivering all elements of the pack efficiently and within the quickest possible time.

Jordans are committed to providing a first-class service and enjoy a reputation for quality, reliability and professionalism.