Dear all,
The Economic Crime and Corporate Transparency Act 2023 (ECCT Act), recently enacted in the UK, promises significant implications for private limited companies.
Key headlines for you are:
Enhanced Transparency:
- The ECCT Act aims to boost transparency by reforming the role of Companies House. This means that the register will become more reliable, providing accurate information about UK companies and legal entities.
- Shareholder identity verification is a critical aspect. All directors, persons with significant control (PSCs), and members of limited liability partnerships (LLPs) must undergo rigorous identity checks.
Restrictions on Filings:
- Companies House will impose stricter controls on who can file documents on behalf of companies. This measure prevents unauthorized or fraudulent submissions.
- Corporate directors will face limitations, ensuring greater accountability and transparency in corporate structures.
Record Keeping and Compliance:
- The ECCT Act introduces changes to company record-keeping requirements. Companies must maintain accurate and up-to-date records.
- Limited partnerships, including Scottish limited partnerships, will face strengthened transparency requirements. Non-compliance could lead to deregistration.
Beneficial Ownership:
- The Act tackles economic crime by focusing on beneficial ownership. Companies must disclose information about their ultimate owners, preventing misuse of corporate structures.
- This move helps prevent organized criminals, fraudsters, and terrorists from exploiting the UK’s open economy.
In summary, the ECCT Act compels private limited companies to enhance transparency, verify identities, and adhere to stricter filing rules. While promoting business integrity, it also bolsters national security and safeguards consumers and businesses alike.
