According to research by The Bureau of Investigative Journalism and The Observer, more than 168 shell companies in the UK are suspected of operating fraudulent currency or cryptocurrency trading schemes, around half of which are potentially linked to slaughter scams. pigs.
In fact, these organized crime groups were found using the UK as a “virtual base” for its operations while exploiting lax regulations to carry out fraud on an industrial scale, according to the investigation.
Pig slaughter scams in the UK
Upon further analysis, the two media companies discovered that many of these companies are linked through domain registrations. Interestingly, the vast majority of company directors are residents of China; however, details on the beneficial owners are limited due to deficiencies in the Companies House registration system.
Despite rampant fraudulent activities and concerns about possible money laundering through the UK, the country has largely turned a blind eye. Margaret Hodge, MP and JPAC Chair on Anti-Corruption and Responsible Tax, echoed a similar sentiment, saying dealers, drug smugglers, fraudsters and fraudsters have been exploiting the UK’s lax and opaque corporate laws for years.
The British politician admitted that Companies House has not known how to fight despite being the first line of defense and stressed the need to investigate the information that is given and punish those who lie. She added,
“And it needs to be properly funded to do its job. Currently, it costs £12 to incorporate a company. Increasing the fee to £100 would provide sufficient resources for our enforcement without increasing costs to the taxpayer. Anything less than that and the corrupt and criminals of the world will see that they can continue to manipulate and exploit us.”
gaps
Pig slaughter scams first originated in China. Also known by its Chinese name, shāzhūpán, because attackers typically “fatten” or “groom” their victims before taking everything they have. While these scams are most pronounced in the cryptocurrency sector, they also involve other types of financial transactions.
One of the main reasons why pig slaughter scams have managed to dominate the country is due to loopholes in the UK company registration system that have been known for years. Anyone can register a business online for as little as £12 without the need to provide any proof of identification.
People interviewed for the joint investigation had reported their cases to law enforcement in the UK or their home countries, the Financial Conduct Authority or the cryptocurrency exchanges they had used to make transfers. However, none managed to recover the funds.
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