The Economic Crime
(Transparency and Enforcement) Bill was introduced into Parliament on 1 March
in response to Russia’s invasion of Ukraine. As part of the Bill, a new
register will require overseas entities owning UK property to identify their
beneficial owners and to register them with Companies House.
Information supplied
to the register must be verified, and overseas entities must be registered to purchase
property. Non-declaration of beneficial ownership will face restrictions on
selling and face potential financial penalties including imprisonment for up to
five years. The register will apply retrospectively for up to 20 years ago in
England and Wales and since December 2014 in Scotland and will be held by
Companies House.
Additionally, the Bill
also aims to make it easier for the National Crime Agency to issue unexplained wealth
orders and in coming weeks Foreign Secretary Liz Truss promised new
restrictions to cut off wealthy Russians access to UK banks which will include
£50,000 limits on bank accounts.
The government has also
published a white paper setting out its position on reforming Companies House
which will form part of a second Economic Crime Bill. This will include
measures that anyone setting up, running, owning or controlling a company in
the UK to verify their identity with Companies House which will have the power
to challenge suspicious information.
The Economic Crime
(Transparency and Enforcement) Bill was introduced into Parliament on 1 March
in response to Russia’s invasion of Ukraine. As part of the Bill, a new
register will require overseas entities owning UK property to identify their
beneficial owners and to register them with Companies House.
Information supplied
to the register must be verified, and overseas entities must be registered to purchase
property. Non-declaration of beneficial ownership will face restrictions on
selling and face potential financial penalties including imprisonment for up to
five years. The register will apply retrospectively for up to 20 years ago in
England and Wales and since December 2014 in Scotland and will be held by
Companies House.
Additionally, the Bill
also aims to make it easier for the National Crime Agency to issue unexplained wealth
orders and in coming weeks Foreign Secretary Liz Truss promised new
restrictions to cut off wealthy Russians access to UK banks which will include
£50,000 limits on bank accounts.
The government has also
published a white paper setting out its position on reforming Companies House
which will form part of a second Economic Crime Bill. This will include
measures that anyone setting up, running, owning or controlling a company in
the UK to verify their identity with Companies House which will have the power
to challenge suspicious information.
