In March, the UK’s Economic Crime Transparency and Enforcement Act 2022 came into effect following urgent calls for the UK’s laws in this area to be tightened. The new legislation introduces further sanctions powers and aims to tackle financial crime by revealing the identities of overseas beneficial owners of UK property.

Rachel Warren, Legal Director, comments on the Act for Financier Worldwide.

“In a bid to close this perceived loophole, one of the key features of the Act is the introduction of a requirement that information relating to beneficial owners is provided and kept in a central register. It is intended that this will deter those who would seek to hide assets and launder money. Failure to update information contained in the register on an annual basis will be a criminal offence both on the part of the entity and every individual officer in default.”

Rachel expects the UK government to wait and see how the new Act works in practice before considering any further legislative changes.

She adds:

“Law enforcement in this area will continue to be a challenge, and since the Act has been passed, we have seen continued steps to make improvements. At the start of April, the CPS launched the new Serious Economic, Organised Crime and International Directorate which merges the existing International Justice and Organised Crime Division and the Specialist Fraud Division, working together with CPS Proceeds of Crime. Another new organisation, the Public Sector Fraud Authority, is being created, and should be operational by the summer.”

The full article was first published in Financier Worldwide.