Keep an eye on: Economic Crime and Corporate Transparency Bill

09 November 2022

Following the implementation of the Economic Crime (Transparency and Enforcement) 2022 Act, the UK government is moving forward with a further bill to tackle economic crime.

The Economic Crime and Corporate Transparency Bill seeks to deliver in these key areas:

  • reforms to Companies House
  • reforms to prevent the abuse of limited partnerships
  • additional powers to seize and recover suspected criminal cryptoassets
  • reforms to give businesses more confidence to share information in order to tackle money laundering and other economic crime
  • new intelligence gathering powers for law enforcement and removal of nugatory burdens on business.

Companies house reforms include:

  • introducing identity verification for all existing company directors as well as new directors, people with significant control and those delivering documents
  • broadening the registrar’s powers to effectively gatekeep the date input onto the system
  • allowing Companies House access to more effective investigation and enforcement powers, cross checking data with other public sector bodies
  • enhance protections of personal information held on the system
  • reforms to clamp down on the misuse of corporate entities.

These reforms and changes, aimed at illicit financial crime, will surely have an impact on the operations of a large number of businesses across the UK. Accountancy firms with large client bases may need to review processes to ensure resiliency when these reforms come into place.

The Bill as introduced can be read here.

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