Seychelles Financial Authorities Raid Offshore Firm After Pandora Papers Investigation Exposes Corruption Links
Investigation Uncovers Widespread Abuse of UK Secrecy Loophole
In a sudden move, Seychelles authorities have launched an investigation into Alpha Consulting, an offshore financial services provider, just hours after a new Pandora Papers investigation revealed that the firm had exploited a UK secrecy loophole to help front companies used by Vladimir Putin’s inner circle.
Investigation Details
The November investigation by Finance Uncovered, the BBC, and Seychelles Broadcasting Corporation uncovered over 900 UK-registered firms set up by nominee directors linked to Alpha Consulting. The documents also revealed that Yevgeny Prigozhin, boss of the Wagner Group, who died earlier this year, reportedly benefitted from Alpha’s services.
- Nominee directors allowed their names and signatures to be used on corporate documents, allowing real owners to remain anonymous
- Firms took advantage of limited partnerships exempt from UK transparency rules
- Some firms were linked to controversial activities, including alleged corruption schemes and unlicensed pharmaceutical sales
Firm Defends Practice
Alpha’s founder, Victoria Valkovskaya, defended the practice, stating it was “not something new or illegal in the industry.” However, the firms exploited a loophole to remain anonymous.
Authorities Respond Swiftly
Seychelles authorities moved swiftly to respond to the allegations, raiding Alpha’s offices in Victoria and seizing hard drives and other documents. The country’s Financial Services Authority confirmed it had opened an investigation into the revelations.
Firm Background
Alpha Consulting was founded in 2008 by Valkovskaya and her now-ex husband Roy Delcy. Notable clients of the firm include Russian billionaire Roman Avdeev, crypto scion Alexander Vinnik, and Angolan billionaire Isabel dos Santos. The firm’s customer base has been predominantly Russian, with 75% of its customers coming from Russia in 2019.
Pandora Papers Investigation
The Pandora Papers investigation has exposed widespread financial corruption, revealing the hidden wealth and secret dealings of politicians, business leaders, and celebrities around the world.