The expansive network of false firms – set up so rapidly, easily and without any details being verified – raises serious questions about whether it’s time to urgently bolster efforts to prevent Ireland being used as a launchpad for international corporate criminal activity.

Having identified more than 100 apparently fake firms earlier this month that were registered via the Companies Registration Office (CRO) within the space of just a couple of weeks beginning in May, at least 100 more have also been registered in recent weeks, the Irish Independent has ascertained. Most purport to have directors based both in Ireland and China.

And incredibly, the CRO’s own address in Dublin is being used as the mailing address of the presenters of the documents used to set up at least a dozen of the fake companies.

It raises huge issues about the “good faith” registration policy of the CRO and demonstrates how easily the Irish company register can be manipulated by anyone seeking to use corporate entities for any purpose.

The CRO has previously confirmed that it does not verify the identity of directors or other crucial details of a newly-registered company.

"The lack of proper oversight and controls around corporate registrations increases the risk of attracting criminal networks who will naturally go to jurisdictions where there are less hurdles and lax controls," said Kevin Hart, the head of Kroll business intelligence and investigations. Kroll is an international risk consulting and corporate investigations group.

“We have seen fake corporate structures in our recent investigations in Europe, and these corporate entities were used to facilitate sophisticated international money laundering transactions as part of highly organised criminal syndicates,” he added.

It may be next to impossible to trace the person or people who have registered the fake firms, meaning they can avoid heavy fines and possible jail sentences that can be imposed for knowingly filing false documentation.

The huge network of bogus firms also has worrying implications for dozens of legitimate businesses in Ireland – mainly in Dublin – whose addresses have been appropriated without their knowledge as the registered address of the false firms that have been established.

Some of the owners of those legitimate businesses contacted by the Irish Independent whose addresses have been used by the newly-formed fake companies expressed shock and surprise when they were informed.

Those businesses could now face legal and other costs related to attempting to have their addresses disassociated from the fake firms.

The legitimate businesses whose addresses have been unknowingly used could also become unwittingly ensnared in illicit activities perpetrated by individuals setting up fake companies.

Mr Hart said that fake companies can be used facilitate a wide range of fraudulent schemes including trade-based money laundering, evading sanctions, tax evasion, and related party transactions to create false collateral and assets used to obtain loans from banks and investors, leading to unpaid loans.

Despite the hundreds of false companies being brought to the CRO’s attention by the Irish Independent, the office has continued to insist that it’s not its job to check company details.

“It is not the role of the CRO to verify the details of these companies,” said a spokesperson for the Department of Enterprise, Trade and Employment, which oversees the CRO.

“Where issues are identified and brought to the CRO’s attention, CRO will take the appropriate action,” the spokesperson added. “In the cases being raised, CRO will be contacting the presenters and also bringing relevant matters to the attention of the ODCE (the Office of the Director of Corporate Enforcement).”

However, it’s almost certain that the CRO will not be able to make contact with the presenters of the documentation as they have used false addresses that not only include the CRO’s own office, but those of legitimate businesses such as chemists, supermarkets, GPs and off-licences.

Asked about the use of the CRO’s own address as the postal address of the presenters for some of the fake firms, the Department spokesperson said the CRO has so far identified 12 such instances after the issue was brought to its attention by the Irish Independent.

“Applications for incorporation are usually checked by the CRO before registration and where errors/issues are found they are returned to the presenter for correction/clarification” said the spokesperson.

“CRO has interrogated its database and identified twelve cases where companies have been incorporated with the presenter’s address incorrectly given as the CRO’s own address in Bloom House,” they added. “These incorrect addresses were not identified during the pre-incorporation checks and steps are being taken to strengthen such checks.”

But despite the evidence of significant fraudulent activity on the companies register, the Department spokesperson said the CRO is “entitled to rely on the information provided” when a company is formed and accept it as “sufficient evidence that all the requirements in respect of registration of the company have been complied with”.

Kevin Hart of Kroll said the CRO’s position that it is a “good faith register” might not meet public expectations.

“Users reasonably assume the information contained in an official government registry is accurate and genuine,” he said.

“The CRO should, at a minimum, take steps to screen new and existing filings to identify clearly fake, misleading or fraudulent filings.”