05/12/2023 Gatenox

UK’s New Laws to Combat Corruption, Money Laundering, and Fraud

The UK government has recently enacted the Economic Crime and Corporate Transparency Act, marking a significant step in its efforts to combat financial crimes. This new legislation introduces substantial changes that directly impact businesses, especially in areas related to KYC and KYB processes.

New Gatenox Series

This blog post is the first in a series that will explore the various facets of the UK’s Economic Crime and Corporate Transparency Act. We aim to provide in-depth insights into how these new regulations will affect businesses and the broader economic landscape.

Overview of the New Legislation

  1. Enhanced Powers for Companies House: The act empowers Companies House with greater authority to scrutinize information, perform rigorous checks on company names, establish new rules for registered office addresses, and require lawful purpose statements​​.
  2. Identity Verification Requirements: The new law mandates identity verification for individuals involved in setting up, running, owning, or controlling companies in the UK, a move designed to prevent fraudulent activities and ensure transparency​​.
  3. Digital Transformation in Reporting: There will be a transition towards exclusively using software for filing accounts, along with changes to the filing options available for small companies​​.
  4. New Email and Lawful Activity Requirements: Companies must now provide a registered email address and confirm the lawful nature of their future activities​​.
  5. Adjustments in Fees: Companies House will increase fees to account for new expenditures and to recover costs from existing operations​​.
  6. Privacy and Protection Measures: The legislation allows individuals to request the removal of personal information from historical documents and to protect personal data from public view when there is a risk of harm​​.
  7. Regulations for Limited Partnerships: Limited partnerships are now required to file their information through authorized agents and provide more detailed information to Companies House​​.
  8. Strengthened Investigative and Enforcement Powers: Companies House gains more effective investigative and enforcement capabilities, along with new powers to share data with law enforcement and other government departments​​.

 

The Economic Crime and Corporate Transparency Act represents a comprehensive approach by the UK to tackle financial crimes like corruption, money laundering, and fraud. These reforms necessitate businesses to adapt their operations to comply with the new regulatory landscape, ensuring integrity and transparency in their financial dealings.