A number of well-known charities have been named as beneficiaries of offshore trusts used to avoid scrutiny from tax authorities, when in fact they have no knowledge or receive no money from the trusts, an investigation has found.

An investigation by the Sunday Times and the International Consortium of Investigative Journalism has revealed that a number of the UK’s best known charities, such as British Red Cross, Cancer Research UK, the NSPCC and the National Trust, have been named as beneficiaries of trusts in the British Virgin Islands and the Cook Islands.

However the charities have no knowledge of these trusts and have not received any money from them, says the Times.

Lynne Robb, CFO, Cancer Research UK, said: “Cancer Research UK was unaware that it was being named as a beneficiary of the Trigon Trust.  We have investigated this matter and have found no records of any donations from this group of companies.”

A document leaked to the Times reveals more than 300 trusts with charities named as the key beneficiaries. The most commonly used charity is the Red Cross.

“The trick of using charities is something that we often uncover,” L Burke Files of the Lubrinco Group, a US financial compliance company told the Times. “These are sham trusts. They are a very effective money laundering tool.”