Understanding the new Economic Crime and Corporate Transparency Bill On 22 September 2022, the UK government published the Economic Crime and Transparency Bill, which followed the Economic Crime (Transparency and Enforcement) 2022 Act earlier in the year. It’s seeking to address the problem of laundered money flowing into the country, estimated to cost £100bn a year, and strengthening defences following the Russian invasion of Ukraine. The new Bill aims to deliver wide-ranging reforms to tackle economic crime and improve transparency over business activities. Topics Risk Management and Regulatory Compliance Here are the key points: Companies House will go through its biggest upgrade in 170 years, receiving new powers to check, challenge and decline incorrect or fraudulent information, making it a more active gatekeeper over company creation. Its investigation and enforcement powers will also be upgraded, cross checking data with public and private partners, and reporting suspicious activity to security agencies and law enforcement. The Bill aims to tackle the misuse of limited partnerships, including Scottish limited partnerships, by tightening registration requirements; requiring limited partnerships to maintain a connection to the UK; increasing transparency requirements; and enabling the Registrar to “deregister” limited partnerships that are dissolved, no longer in business, or when a court orders in the public interest. Additional powers will be given to law enforcement agencies, by amending the criminal confiscation and civil recovery powers in the Proceeds of Crime Act (2002). The aim is to recover cryptoassets associated with the proceeds of crime or money laundering, fraud, and ransomware attacks, more quickly. Anti-money laundering powers are set to be strengthened, helping businesses share information on suspected fraud and economic crime more easily; the National Crime Agency will be able to obtain information without submitting a Suspicious Activity Request before an Information Order; and resources in the private sector and law enforcement will be focussed on “high value activity”. For detailed information and government factsheets on the Economic Crime and Transparency Bill, click here.
