Introduction: The Economic Crime and Corporate Transparency Bill has received Royal Assent, bringing significant changes for UK businesses and corporate governance. It expands the Companies House registrar’s role and increases expectations around transparency and verification.
Companies House registrar: enhanced responsibilities
- Beneficial ownership register: Companies House will maintain a public register of beneficial ownership (people with significant control or ownership). The goal is improved transparency and accountability.
- Verification and due diligence: The registrar will verify the accuracy of information submitted. Higher-risk entities may be subject to enhanced scrutiny.
- Sanctions screening: Checks will be used to reduce the risk of UK companies engaging with sanctioned individuals or entities.
- Global alignment: Reporting requirements may extend to ultimate beneficial owners outside the UK, aligning with international anti-money laundering and transparency standards.
Objectives of the registrar
- Enhance transparency: Better data quality and accessibility is intended to increase trust for investors, stakeholders and the public.
- Combat economic crime: Verification and screening measures support the broader mission of tackling corruption, money laundering and fraud.
New responsibilities for UK companies
- Accurate reporting: Companies will need to report beneficial ownership accurately, supported by appropriate documentation and checks, to avoid penalties and reputational damage.
- Global reach: Where ownership is overseas, companies will still need to identify and report ultimate beneficial owners.
Possible increased fees
Implementing verification and stronger controls may increase Companies House administrative workload. While fee changes are not guaranteed, businesses should be prepared for the possibility of increased Companies House fees over time.
Conclusion: This legislation signals a shift towards stronger corporate transparency and stronger checks. Businesses should review governance and internal processes to ensure they can comply smoothly.
