British police Binary Options announcement indicates that around 130 UK-registered entities provide a smokescreen to unregulated binary options websites. What UK authorities can do to prevent fraudulent activities?
28 November, AtoZForex – The Sunday Herald has carried out the research revealing that around 130 UK-registered entities provide an EU cover-up to unregulated binary options websites. This binary options websites operate from call centers located in Israel. According to the British police Binary Options announcement, amidst the UK-registered firms, Scottish ones constitute more than a quarter. The Scottish firms function as formal owners of the website. Most of them are limited partnership or SLPs. As the SLPs enables owners to remain confidential, file no accounts and avoid paying taxes.
British police Binary Options announcement
Ben Wallace, the UK Security Minister, has stated that “intelligence assessments from law enforcement” on the misuse of SLPs were “very concerning”. Further, the spokesman for the Scottish National Party and the advocate of the reform of SLPs, Roger Mullin, would like Britain to join other countries in prohibiting binary options.
“Masquerading as investment opportunities, binary options are unregulated, unethical gambling on financial markets, but where the investor-punters are systematically stripped of all of their funds.
I will be ensuring ministers are fully aware of these binary emphasize scams which serve to emphasize the need for urgent action,”- comments Roger Mullin.
According to the Financial Conduct Authority (FCA), binary options websites usually present themselves as being British. Whereas, National Fraud Intelligence Bureau’s head of crime stated that offshore binary options scams are the major fraud in Britain. According to Andy Fyfe, the average UK loss constituted £16,000.
Why scammers choose Scotland?
Fraudsters have been relocating their formal ownership to Scotland and the rest of the UK from Pacific tax havens. As credit card companies would rather process transactions from an address in Edinburgh and not from the Marshall Islands. Simona Weinglass, the investigative journalist for The Times of Israel, commented that Scotland has to take enforcement actions to prevent fraudsters from processing credit card payments.
“Fraudulent binary options and other cyber scams only work because the scammers are able to process credit card payments. At the human level, victims are more likely to ‘trust’ a company with a Scottish address than one in, say, the British Virgin Islands.”
An Israeli lawmaker, Ksenia Svetlova is suggesting an Israeli legislation impose tighter controls on lawyers and accountants, providing company formation services. Since such businesses, some of them based in Scotland, have been promoting SLPs as tools for secret ownership and tax avoidance.
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