Setting up a bogus company is easy it is claimed

Mr Murphy told File On 4 that UK company law makes it simple for corrupt politicians from abroad to register sham companies in the UK.

"If you wanted form a UK company with nominees the first place you would start is Google and simply type in 'UK company with nominee directors'.

"We come up with a company straight away that is offering to form a UK company with nominee directors"

Nominee directors and shareholders will be registered at Companies House without the firm's real shareholders or directors being revealed.

"Some amendments were made in the company Reform Bill asking for a form of disclosure of who really runs a company to be required by law. And the Government put a lot of effort into ensuring that was not part of the bill.

He said the Government saw this as too much of a burden on companies but in reality it is a licence to commit fraud.

However Hilary Benn International Development Secretary said the Government wasn't convinced of the need for a change adding, "in the end in regulation you have to strike a balance."

He also said an EU money laundering directive would make a real difference.