July 30, 2024
This act aims to give UK authorities the power to seek out any persons seeking to abuse the UK’s economy. Companies House will have better means of verifying the identities of company directors, the power to alter or remove any information that they believe to be fraudulent in some cases, and the power to share this information with the relevant law enforcement authorities.
It is intended that law enforcement will have the enhanced ability to freeze and recover cryptoassets and that large corporations will be held accountable for any malpractice such as money laundering and fraud. In the past criminals have hidden behind false names and addresses in order to carry out fraudulent behaviour. The act aims to provide for greater transparency within the corporate world.
Business Minister Kevin Hollinrake said[1]:
“We’re providing Companies House with the tools to take a much harder line on criminals who take advantage of the UK’s open economy, ensuring the reputation of our businesses is not tarnished by the UK playing host to the world’s scammers.
These reforms will remove the smoke and mirrors around companies hiding behind false identities, provide further protection to the public from companies fraudulently using their addresses, and deliver better data to support business and lending decisions across the economy, enhancing the UK’s reputation as a great and safe place to do business.”
Companies House will also be able to act more efficiently when it receives reports of personal information being used on the register without an individual’s consent.
The measures include[2]:
- introducing identity verification for all new and existing registered company directors, people with significant control, and those who file on behalf of companies
- broadening powers to become a more active gatekeeper over company creation and a custodian of more reliable data
- improving the financial information on the register so that the register is more reliable and accurate, reflects the latest advancements in digital technology, and enables better business decisions
- providing Companies House with more effective investigation and enforcement powers, and increasing their ability to share relevant information with partners
- enhancing the protection of personal information to protect individuals from fraud and other harms
Although the act has received royal assent, the above measures are not likely to take effect all at once, with a stepped implementation over the next 12-18 months being likely.
If you have any queries regarding your business, please do not hesitate to contact our Solihull office on 0121 705 7571 or email enquires@wallacerobinson.co.uk.
[1] https://www.gov.uk/government/news/robust-new-laws-to-fight-corruption-money-laundering-and-fraud
[2] https://companieshouse.blog.gov.uk/2023/10/26/changes-to-uk-company-law-a-big-moment-for-companies-house/
Sophia Kenna
Trainee Solicitor – Commercial Department
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