In recent months Scottish LPs have attracted press attention due to their increasing prevalence in fraudulent activity. Of note is the reported role of 20 Scottish LPs in the high profile Moldovan bank fraud with losses estimated at $1bn. The recent Radio 4 File on Four documentary noted that over the last four years over 8000 new Scottish LPs have been registered and expressed concern that not all of those LPs have been registered for legitimate business purposes but rather to mask fraudulent and money laundering activities.
The purpose of this note is to highlight some of the differences between Scottish LPs and limited partnerships registered in the rest of the UK and to flag some of the options and considerations to be taken into account in determining the appropriate strategy in the event that a Scottish LP is part of a more complex fraudulent structure.
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