Because I once worked as an English-speaking money transfer operator in Russian banks, I know perfectly well what Luke Harding, Nick Hopkins and Caelainn Barr are writing about (British banks handled vast sums of laundered Russian money, 20 March). A friendly western chap arrives and installs a secure programme on your PC, you input the banking details of a payment (usually to an offshore company), your boss authorises the transfer with his password, and the funds change hands. Yes, I was a small cog in a giant wheel, but I saw that Russia had perfected your money-laundering and tax-evading practices, with only one payment – to once sanction-stricken Yugoslavia – being intercepted by the US authorities. The schemes may have been invented to tide a punitive taxation period in Russia over, but became the norm and now it’s too late to mend.
Mergen Mongush
Moscow, Russia
• This case proves yet again that we must do all we can to tackle secret company ownership. The story describes money vanishing into offshore shell firms whose “beneficial owners” remain anonymous, and whose source of wealth is a “mystery”. The UK government has led the way in creating a public register of beneficial ownership in the UK. The time has come now to extend this transparency to the UK’s overseas territories. Over 50% of the shell companies uncovered in the Panama Papers were set up in the British Virgin Islands. This action is supported by parliamentarians from all major UK political parties. The government should set a timeline in place by when we will have this transparency to help stop further scandals from happening.
Second, registers of the beneficial owners of companies need to be accurate and verified, so that we have the right information to stop these sorts of crimes. The reports highlighted weaknesses with compliance systems at Companies House which should be addressed.
Third, this case highlights that it is not enough for banks and regulators to simply assure the public that similar problems are being dealt with. There have been too many cases like this, and the public’s trust in banks and regulators is quickly diminishing. Only the “disinfectant of transparency” can help to restore trust in the banking system. It’s time for the UK government to act decisively and ensure transparency in its overseas territories.
Toby Quantrill
Economic adviser, Christian Aid
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