The Economic Crime and Corporate Transparency Act, which has recently received Royal Assent, brings in advanced measures that empower UK authorities to actively target criminal networks and those who seek to exploit the UK’s open economy.
Enhanced capabilities will be granted to Companies House to confirm the identities of company directors, eliminate fraudulent businesses from its register, and share relevant information with law enforcement agencies.
Authorities will gain increased powers to handle cryptoassets, including their seizure, freezing, and recovery. Additionally, landmark legal changes will empower courts to reject frivolous lawsuits aimed at curbing freedom of speech. The reforms will enable more effective prosecution of corporate misconduct.
These reforms aim to level the playing field for businesses, securing the UK’s status as a leading global hub for reputable business activity.
Companies House will undergo its most significant transformation in its 180-year history. The agency will take immediate action to improve the reliability of its company register, including the removal of invalid office addresses and tighter verification checks.
New rules around public beneficial ownership will close existing loopholes, enabling a more transparent business environment. This will help in revealing corrupt actors and building public trust.
The UK is committed to collaborating with international partners to bolster beneficial ownership registers and thereby strengthen national security and level the business playing field.
Global efforts are ongoing, with countries like Nigeria, France, Canada, Australia, and New Zealand also enhancing their ownership registers.
The new capabilities represent a historic milestone for Companies House, which will intensify its efforts to clean the register, tackle fraud, and improve data reliability, thereby benefiting businesses across the nation.
Judicial changes are introduced to combat strategic lawsuits against public protection (SLAPPs), and sweeping reforms to corporate criminal liability are set to be a game-changer, according to the Government.
The National Crime Agency (NCA) is also set to benefit from strengthened powers that compel businesses to provide information suspected of being linked to money laundering or terrorist financing. The focus will expand to target illicit cryptoassets, introducing new provisions for their seizure and conversion.
The reforms aim to enhance transparency and foster better corporate behaviour, positioning prosecutors to more effectively hold companies accountable for misconduct under their supervision.
This act stands as the most significant upgrade in the ability to combat economic crime in over a decade, promising quicker and more effective investigations.
