There is some new legislation in place aimed at clamping down on criminals which will change how businesses deal with Companies House, including plans affecting small businesses. It is deemed as the biggest shake up to Government in its history.
Criminals using false names to set up business and commit fraud, launder money, and hide illegal trade will now be targeted under the new anti-corruption laws, after Companies House was granted ‘enhanced abilities’ to help investigators’ clamp down on tactics used by fraudsters and criminals. Officials will be required to share information with law enforcement after the Economic Crime and Corporate Transparency Act received Royal Assent in October.
The new powers will include verification checks to assess the identities of people setting up companies and the removal of bogus firms from public register. The Government believes the Act will stop criminals “hiding behind false names or registering companies with fictional characters” in a game-changing move to prevent international criminals using the UK as a hub for financial crime and fraud. Investigators will be given new powers to seize and recover crypto assets, such as the electronic currency Bitcoin, which often aids criminals engaging in cybercrime.
The powerful new reforms are expected to come into force in 2024, with Companies House finalising secondary legislation that will bring change to SME’s, micro businesses and sole traders reporting rules:
- filing profit and loss accounts will be compulsory for all SME’s.
- accounts will need to be filed digitally – it won’t be possible to file any other way.
- identity verification will come in for anyone setting up, running, or controlling a company.
- Companies House will be given power to check, remove, or decline information.
- they will also have more powers to challenge suspicious information and cross-check with other public and private sector bodies.
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