Regulation Update: The Economic Crime and Corporate Transparency Act Receives Royal Assent

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) came into force on 26th October 2023, after the Bill of the same name received royal assent.  

The ECCTA strengthens the UK’s efforts to combat economic crime via a wide-ranging suite of reforms.  These include new and enhanced powers for Companies House to scrutinise information provided by companies and their directors.  In addition, there are new offences for failure to provide information or make false statements, as well as new routes for the Serious Fraud Office and National Crime Agency to attribute corporate liability through the introduction of a failure to prevent fraud offence.

Let’s focus on Companies House…

Companies House Reform

Companies House has undergone the biggest shake up in its 180-year history, turning it from a largely passive recipient of company information to a much more active gatekeeper.  It now has enhanced abilities to verify the identities of company directors, remove fraudulent organisations from the register, and share information with criminal investigation agencies.  

More specifically, the reforms include:

• Identity verification of all new and existing registered company directors, People with Significant Control, and those delivering documents to the Registrar.
• A requirement that those forming or running companies supply additional information in relation to material they file with Companies House.
• The ability for the registrar to and query and/or reject information already on the register identified as potentially fraudulent, suspicious or might otherwise impact on the integrity of the register or wider business environment.
• Proactive sharing of all information held by Companies House about any entity with law enforcement, regulatory bodies, and other public authorities either to assist in carrying out its own functions or to assist a public authority with the exercise of its functions.
• Discretionary powers to remove material from the register, change the address of a company’s registered office, and take action against those persistently failing to provide an appropriate registered office address.

What happens next?

The provisions of the ECCTA will come into force under a phased approach to allow companies, and Companies House itself, time to prepare for implementation.  

However, Companies House has noted that, whilst some of the measures in the ECCTA will need processes to be developed and secondary legislation before they can be brought into force, other measures can, and will, be brought into force sooner.  

In early 2024 we can expect early-implementation measures to come into force including the power to query or reject information filed with Companies House, revisions to the company names regime, and the requirement for companies to provide the registrar with an email address.

What does this mean for FullCircl customers?

We are excited about the ECCTA, and specifically the reform of Companies House, and the impact it will have in terms of greater transparency, accuracy, and reliability of data.  After all, the more reliable the data, the more valuable our tools, applications and business logic become – helping our customers identify & acquire customers, verify and onboard them quickly, and retain and grow relationships for the long-term.

Customer Lifecycle Intelligence is not static data - we deliver a multi-dimensional view that combines advanced data ingestion, validation, data matching, and augmentation with real-time sanction, PEPs, adverse media screening and more.  All neatly delivered via web app or API.  

Whether it’s automated data collection and critical checks, ensuring compliance, confidently targeting the right customers, or growing advocacy through frictionless onboarding and support, FullCircl’s SmartBanker solution is helping the UK’s leading banks and financial service providers to:

• Minimise the time spent gathering management information
• Identify the business customers that fit their organisation's risk appetite
• Enhance the ability to proactively engage with customers.

If you have questions about the potential impact of the Economic Crime and Corporate Transparency Act and how to stay ahead of implementation, or if you would like to experience SmartBanker’s capabilities get in touch with a member of our team today.