Risk Assessment: GARANT PRO LTD (12776922)

1. Risk Rating: HIGH

The rating reflects a combination of misleading financial presentation, significant anti-money laundering (AML) red flags, and the absence of any operational substance despite five years of incorporation and a £14 million capital structure. The stated net assets figure creates a materially misleading impression of the company's financial position.

2. Key Concerns

i) Misleading Financial Position The balance sheet reports £14,000,000 in net assets and shareholders' funds, but this figure consists entirely of "called up share capital not paid." This is a receivable from shareholders, not cash or tangible assets. The company has no actual financial resources to meet obligations—its "net assets" are an unpaid debt owed by the shareholder. The accounts explicitly confirm the entity has never traded.

ii) AML and Sanctions Risk The sole director and PSC, Xxxxxx Xxxxxxxxname shown to subscribers (identified as Russian), owns more than 75% of shares. Combined with the SIC code 64999 (Financial intermediation not elsewhere classified), this presents a elevated risk profile under current UK sanctions regimes and AML regulations. A dormant entity with financial intermediation classification and Russian beneficial ownership warrants enhanced due diligence.

iii) Shell Company Characteristics A company incorporated in 2020 with no trading history, no employees, a central London serviced office address, and multiple share classes (three ordinary and three preference classes referenced in filings) displays characteristics consistent with a shell or special purpose vehicle. The purpose for such a structure with £14 million in authorised capital remains unclear.

3. Positive Indicators

• Filing Compliance: Accounts and confirmation statements are current and not overdue, indicating basic administrative compliance.
• PSC Transparency: The register of people with significant control is properly maintained and discloses the controlling party.
• No Adverse Records: No disqualification orders, insolvency proceedings, or late filing penalties are evident.

4. Due Diligence Notes

• Unpaid Share Capital: Determine the purpose and intended timeline for the £14 million unpaid commitment. Assess whether Xxxxxx Xxxxxxxxname shown to subscribers has the means to satisfy this obligation.
• Sanctions Screening: Conduct full sanctions screening on Xxxxxx Xxxxxxxxname shown to subscribers, including OFSI, EU, and US lists. Verify source of wealth and source of funds.
• Business Purpose: Clarify the intended business activity given the financial intermediation SIC code. Understand why the company has remained dormant since 2020.
• Share Structure: Investigate the rationale for six share classes (three ordinary, three preference) in a non-trading entity and whether this suggests complex transaction planning.
• Registered Address: Verify whether Unit 3, Office A at St. Mary At Hill is a serviced/virtual office and assess whether this is consistent with the company's stated purpose.
• Related Entities: Identify any connected companies or associated structures involving Xxxxxx Xxxxxxxxname shown to subscribers.

Names of the people mentioned are shown to subscribers. See subscription