The UK government has introduced the Economic Crime and Corporate Transparency Bill in an attempt to drive ‘dirty money’ out of the UK.
According to GOV.UK, the bill will require anyone who registers in the UK to verify their identity.
The reforms to Companies House will also the organisation armed with new powers to check, challenge and decline incorrect or fraudulent information. The investigation and enforcement powers of Companies House will also be upgraded, enabling the organisation to cross-check data with public and private partners and report suspicious activity to law enforcement.
In addition, the bill will help prevent the abuse of limited partnerships for money laundering and other nefarious purposes, by tightening registration and transparency requirements for these entities.
GOV.UK said law-abiding firms and investors across the UK will benefit from simplified filing requirements and a more reliable companies register to inform companies and lending decisions. The reforms will also ensure that small business owners, consumers and the public are better protected from fraudulent use of their identities and addresses.
The bill will additionally benefit law enforcement by providing them with greater powers to compel firms to hand over information that could be related to money laundering or terrorist financing.
The new law will also simplify and speed up the ability for law enforcement agencies to seize, freeze and recover cryptoassets – the digital currency increasingly used by organised criminals to launder profits from fraud, drugs and cybercrime.
Business Secretary Jacob Rees-Mogg said, “We want the UK to be the best place in the world to invest and start a business, but we must not allow this openness to be exploited by fraudsters misusing the identities of innocent people, or corrupt elites attempting to disguise their dodgy dealings.
“This historic Bill will equip Companies House and law enforcement with the tools they need to root out criminals attempting to hide their activities without burdening law-abiding companies with unnecessary bureaucracy. Above all, via strict enforcement measures, we are telling investors that the UK is open for legitimate business only.”
Home Secretary Suella Braverman added, “The UK is no home for dirty money. The government has taken unprecedented action to prevent kleptocrats and organised criminals from abusing our open economy, and this Bill will go even further.
“Through this Bill we are giving our law enforcement agencies greater powers and intelligence capabilities to stay one step ahead of the criminals intent on keeping their corrupt assets out of reach.”
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