AN ANTI-CORRUPTION scheme established by David Cameron six years ago is failing to stop hundreds of billions of pounds in money laundering, a new study has warned.

Transparency group Global Witness accused the government today of allowing “fundamental gaps” in the registration of firms through Companies House.

Companies House is exempt from European Union anti-money laundering regulations. Individuals from anywhere in the world can register new firms in Britain by only stating addresses and naming owners.

Fraudulent registration of a company, office or individual can be reported to Companies House, but it has no investigatory powers.

Nienke Palstra from Global Witness said: “The fact that critical information on company ownership is accepted at face value, without even the requirement for basic ID checks, hugely undermines the fight against corruption and money laundering.”

Former Tory Prime Minister Mr Cameron launched a register of “People with Significant Control” over businesses in 2013.

It aimed to reveal the ultimate owners of shell companies, which are often linked to tax havens.

Global Witness has trawled the register and found that 336,224 companies “simply say they have no beneficial owner.”

Nearly 7,000 companies controlled by a beneficial owner, who themselves “control” more than 100 firms, it also found.

Global Witness said this suggests the individuals could be nominees and not the real beneficial owners.

Almost 500 companies are “part of circular ownership structures, where they appear to control themselves,” it added.

Ms Palstra said: “While the UK is a world leader in the way it makes information available to the public on its companies, the register will only prove its worth if people can trust the information and criminals are actually deterred from using UK companies in the first place.

“If the UK is serious about changing its reputation as a safe haven for dirty money the government must fix the company register by giving Companies House a clear mandate and resources to do its job.”

A spokesperson from the Department for Business, Energy and Industrial Strategy said: “Companies House continues to crack down on any misuse of the register and contacts firms where the register does not contain a name.”

The register contains 4.6 million names and criminal proceedings had been issued against 243 directors, they added, and 66 directors and 79 companies have been convicted in connection with failure to comply with the register.