Economic Crime and Corporate Transparency Act 2023, No. 56 (as amended)

The Economic Crime and Corporate Transparency Act 2023 is a UK legislation designed to enhance the transparency of corporate entities and combat economic crime.

Purpose: The Act’s primary goals are to:

• Prevent the misuse of UK corporate structures.
• Improve the accuracy and usability of data held by Companies House.
• Strengthen the legal framework to combat economic crime, such as money laundering and fraud.

Requirements: Key provisions of the Act include:

• Identity verification for directors, people with significant control (PSCs), and members of limited liability partnerships (LLPs).
• Restrictions on who can file documents at Companies House on behalf of companies.
• Enhanced powers for Companies House to check, remove, or decline information on the companies register.
• New rules regarding the use of corporate directors and changes to company record-keeping requirements.

Applicability: The Act applies to:

• All corporate entities registered in England and Wales.
• Directors, PSCs, and relevant officers of registrable relevant legal entities (RLEs).
• LLP members and other individuals involved in the management of corporate entities.

The Act represents a significant step in the UK’s efforts to ensure corporate accountability and integrity in the business environment.

The Economic Crime and Corporate Transparency Act 2023 sets forth specific evidence requirements to ensure that companies comply with the new transparency and anti-crime measures. Here’s a summary of these requirements:

• Identity Verification: Directors, persons with significant control (PSCs), and members of limited liability partnerships (LLPs) must undergo identity verification processes.
• Record Keeping: Companies are required to maintain accurate records that reflect their true ownership and control structures.
• Filing Documents: Restrictions are placed on who can file documents at Companies House, and there are requirements for the verification of the identities of those filing.
• Corporate Directors: Use of corporate directors is restricted, and where they are used, evidence must be provided that all legal requirements are being met.
• Companies House Powers: The Act grants Companies House new powers to check, remove, or decline information submitted to, or already on, the companies register. Companies must be able to provide evidence to support the accuracy of the information they submit.

These evidence requirements are part of the Act’s broader objective to clamp down on economic crime and improve corporate transparency in the UK. They apply to all UK-registered corporate entities and their directors, PSCs, and relevant officers.