London, UK – The Economic Crime and Corporate Transparency Act has received Royal Assent, reinforcing the UK’s commitment to fighting fraud, corruption, and supporting legitimate businesses.
Enhanced Companies House Measures
Companies House, the UK’s official company register, gains substantial powers to verify directors’ identities, remove fraudulent entities, and share data with criminal investigators. This is the most significant change in its 180-year history.
These actions will improve data quality, remove fraudulent addresses, and close loopholes used for illicit money movements.
Strengthening Law Enforcement
The act empowers law enforcement to seize, freeze, and recover cryptoassets, targeting criminals. It also helps courts dismiss frivolous lawsuits that silence free speech and hold large corporations accountable for wrongdoing.
Freedom of Speech Protection
To safeguard free speech, the act combats Strategic Lawsuits Against Public Participation (SLAPPs) used to intimidate opponents.
Corporate Accountability Reforms
Major changes in corporate liability grant prosecutors the power to hold companies accountable for fraud. A ‘failure to prevent fraud’ offense ensures large organizations are liable for staff fraud. The ‘identification doctrine’ holds businesses responsible for senior managers’ economic crimes, preventing evasion.
Global Fight Against Illicit Finance
The UK will collaborate with international partners to strengthen registers of beneficial ownership, reducing money laundering and fostering a level playing field.
The legislation also empowers the National Crime Agency and police to target illicit cryptoassets, further enhancing the UK’s stance against financial wrongdoing.
This legislation creates a more secure, transparent business environment while protecting free speech and ending legal system abuse. It promises increased corporate accountability and business-friendly growth.
The UK strengthens its resolve against financial misconduct with the Economic Crime and Corporate Transparency Act, ensuring transparency, protecting free speech, and enhancing corporate accountability. It’s a significant stride towards a secure and business-friendly environment.
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