The Economic Crime and Corporate Transparency Act 2023 (Commencement No 2 and Transitional Provision) Regulations, SI 2024/269, bring most of Part 1 (Companies House reforms) and Part 3 (register of overseas entities) of the Economic Crime and Corporate Transparency Act 2023 into force from 4 March 2024.
Part 1 of the Act updates the powers of the Registrar of Companies to target criminal activity which uses company structures. This enables the Registrar to challenge the fraudulent use of company names and addresses which has come to light in recent years as a significant problem in the UK. The BBC has reported several times on cases where bogus companies have been registered using the addresses of unsuspecting private individuals (for example, leafy street in Leigh-on-Sea that 80 sham firms call home).
Part 3 of the Act amends the rules which established the register of overseas entities including some technical changes ‘to improve the effectiveness of the Register’.
Commenting on the changes, Louise Smyth, Companies House CEO, said: ‘These new and enhanced powers are the most significant change for Companies House in our 180-year history ... As we start to crack down on abuse of the register, we are prioritising cases where people’s names and addresses have been used without their consent. It will now be much quicker and easier to report and remove personal information that has been misused.’
Various other sections of the Act were previously brought into force by SI 2023/1206, mostly with effect from 15 January 2024. Sections 194 and 195 which provide the ‘power to strike out certain claims’ (the strategic lawsuits against public participation ‘SLAPPs’ provisions) and sections 199 to 206 which set out the failure to prevent fraud offences, have not yet been brought into effect. HMRC have previously produced a helpful set of factsheets explaining the different subject areas covered by the Act, including a general overview of the main provisions.
The Economic Crime and Corporate Transparency Act 2023 (Commencement No 2 and Transitional Provision) Regulations, SI 2024/269, bring most of Part 1 (Companies House reforms) and Part 3 (register of overseas entities) of the Economic Crime and Corporate Transparency Act 2023 into force from 4 March 2024.
Part 1 of the Act updates the powers of the Registrar of Companies to target criminal activity which uses company structures. This enables the Registrar to challenge the fraudulent use of company names and addresses which has come to light in recent years as a significant problem in the UK. The BBC has reported several times on cases where bogus companies have been registered using the addresses of unsuspecting private individuals (for example, leafy street in Leigh-on-Sea that 80 sham firms call home).
Part 3 of the Act amends the rules which established the register of overseas entities including some technical changes ‘to improve the effectiveness of the Register’.
Commenting on the changes, Louise Smyth, Companies House CEO, said: ‘These new and enhanced powers are the most significant change for Companies House in our 180-year history ... As we start to crack down on abuse of the register, we are prioritising cases where people’s names and addresses have been used without their consent. It will now be much quicker and easier to report and remove personal information that has been misused.’
Various other sections of the Act were previously brought into force by SI 2023/1206, mostly with effect from 15 January 2024. Sections 194 and 195 which provide the ‘power to strike out certain claims’ (the strategic lawsuits against public participation ‘SLAPPs’ provisions) and sections 199 to 206 which set out the failure to prevent fraud offences, have not yet been brought into effect. HMRC have previously produced a helpful set of factsheets explaining the different subject areas covered by the Act, including a general overview of the main provisions.
