Landmark Economic Crime and Corporate Transparency Act Receives Royal Assent – Crackdown on Fraud and Corruption to Bolster Legitimate Business

The Economic Crime and Corporate Transparency Act has received Royal Assent today, introducing groundbreaking powers to combat fraud, corruption, and illicit business practices in the UK. The act aims to proactively target organised criminals and individuals seeking to exploit the country’s open economy.

One of the key provisions of the act is the enhancement of Companies House’s abilities to verify the identities of company directors, remove fraudulent organisations from the company register, and share information with criminal investigation agencies. This will help prevent criminals from hiding behind false identities and conducting illicit activities through UK companies.

Law enforcement agencies will also benefit from greater powers to seize, freeze, and recover cryptoassets, addressing the growing use of cryptocurrencies in money laundering and terrorist financing. Additionally, the act includes legal reforms to dismiss frivolous lawsuits that aim to suppress freedom of speech and hold large corporations accountable for malpractice.

Home Secretary Suella Braverman emphasized the importance of preventing criminals from profiting from their illegal activities, stating that the act will significantly enhance law enforcement’s ability to combat organised crime, fraud, and money laundering.

Business Minister Kevin Hollinrake highlighted the measures to protect the UK’s reputation as a safe place to do business, by cracking down on criminals who exploit the country’s open economy. The reforms aim to remove fraudulent companies from the register, prevent money laundering, and provide better data for business and lending decisions.

Lord Chancellor Alex Chalk emphasized the commitment to protecting freedom of speech and preventing the abuse of the legal system by corrupt elites through strategic lawsuits. The act will give judges new powers to address such lawsuits and hold companies accountable for economic crimes.

The act will also introduce significant changes to Companies House, including verification checks on company directors, removal of fraudulent information from the register, and improvements to public beneficial ownership registers. These measures aim to increase transparency, prevent fraud, and enhance trust in the UK’s business environment.

Overall, the Economic Crime and Corporate Transparency Act represents a major step towards strengthening the UK’s legal framework to combat economic crime, protect businesses, and uphold the rule of law.