One of Scotland’s biggest law firms has pulled out of a deal under which it hosted shell companies for anonymous Italians, Brazilians and Russians.

Burness Paull has been under intense scrutiny since The Herald earlier this year revealed that a Scottish limited partnership or SLP based at its Glasgow office was allegedly used to bribe the president of Peru.

The blue chip legal giant allowed company formation agents to set up SLPs - a now notorious kind of business dubbed “Britain’s home-grown secrecy vehicle” - at its prestigious addresses.

Now, just as the UK Government prepares to announce reforms of SLPs, Burness Paull has confirmed that it will no longer host such entities for third parties.

READ MORE: Burness Paull linked to hundreds of secretive firms

Its decision came amid growing concerns that Scotland’s secretly owned companies – many registered at respectable white collar firms – were tarnishing the nation’s image in the same way as anonymous bank accounts did for Switzerland.

Burness Paull and other law firms have a lucrative and legitimate business creating and hosting SLPs as vehicles for funds management for everything from shares to real estate. This is unchanged by their no longer providing a mailbox service.

The Herald:

A spokesman said: “Burness Paull no longer provides accommodation services to partnerships through a third party agency. We continue however to provide accommodation services in respect of fund clients of the firm as part of our overall service.”