Alpha Consulting, a Russian-owned offshore service provider based in Seychelles, has had its operating licenses revoked following investigations of its role in creating anonymous shell companies for oligarchs and tax evaders. This follows the revelations from the Pandora Papers, identifying how the firm assisted in concealing identities through its operations. The firm has a chance to appeal the decision and has defended its practices as lawful amidst tightening global financial regulations.

A Seychelles-based offshore services provider, Alpha Consulting, known for establishing numerous anonymous shell companies for Russian oligarchs and financial criminals, has recently lost its operating licenses. This action follows a thorough investigation by Finance Uncovered, the Seychelles Broadcasting Corporation, and the BBC. Alpha Consulting was among 14 entities implicated in the Pandora Papers, which revealed how affluent individuals conceal their assets offshore.

The revocation of Alpha Consulting’s licenses occurred 16 months post-raids on its Victoria headquarters after an extensive probe into its operations. Established in 2008, Alpha Consulting became instrumental in a network of Russian-speaking financial services utilizing tax havens. According to the investigation, the firm registered hundreds of shell companies in the U.K. for clients from former Soviet nations to protect their identities, often employing Seychelles locals with minimal financial expertise as nominee directors.

Documents uncovered in the Pandora Papers indicated that Alpha Consulting had shared knowledge of how limited partnerships in the U.K. evaded ownership disclosure requirements. Key figures associated with Russian President Vladimir Putin, including Yevgeny Prigozhin of the Wagner Group and Leonid Reiman, were among those linked to the firms created by Alpha Consulting, which were implicated in significant corruption and illegal activities.

The firm has a 90-day window to appeal the decision made by the Seychelles Financial Services Authority (FSA). Co-founder Victoria Valkovskaya contended that the company did not directly control operations of the entities it established and claimed that using nominee directors was lawful. Recent U.K. legislation aims to enhance oversight of limited partnerships but reforms will not be implemented until at least 2026.

Randolf Samson, Chief Executive of the Seychelles FSA, highlighted the regulators’ responsibility to prevent misuse of the jurisdiction and uphold the nation’s reputation. He suggested that loopholes in the U.K. legislation could directly impact countries like Seychelles, emphasizing the need for global acknowledgment and rectification of these gaps.

The revocation of Alpha Consulting’s licenses underscores the increasing scrutiny of offshore financial activities, particularly those linked to Russian interests. The investigation revealed a vast scheme of anonymity and potential corruption facilitated through the creation of shell companies. As global oversight strengthens, jurisdictions like Seychelles face pressures to ensure compliance and protect their reputations in the international finance arena.

Original Source: www.icij.org

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