Economic Crime and Corporate Transparency Bill

A Bill to make provision about economic crime and corporate transparency; to make further provision about companies, limited partnerships and other kinds of corporate entity; and to make provision about the registration of overseas entities.

Originating House: Commons
Current House: Commons
Current Stage: Programme motion
Sponsors:
Suella Braverman (Home Office)
,
Lord Johnson of Lainston (Home Office)
Link: https://bills.parliament.uk/bills/3339

The analysis below is based on the latest amended version of the bill found on 23rd July 2023. You can find the exact PDF document here: https://bills.parliament.uk/publications/51080/documents/3397

TL;DR:

The Economic Crime & Corporate Transparency Bill aims to reform UK companies & partnerships to prevent economic crime. Key provisions include tougher rules on company formation, new ID/reporting requirements, more powers for regulators, reforms to public registers, and new civil & criminal penalties.

Concerns:

New reporting rules could increase bureaucracy for businesses. Expanded powers for regulators could risk overreach. Reforms to public registers may infringe on privacy rights. New civil/criminal penalties could punish well-meaning errors.

Detailed Overview:

The UK government has introduced the Economic Crime and Corporate Transparency Bill to reform companies and partnerships in order to prevent economic crime. This wide-ranging bill aims to increase transparency in the corporate sector and equip regulators with more powers to tackle illicit finance. Some of the major provisions in the bill include:

Tougher Rules on Company Formation and Directors

The bill introduces stricter requirements on verifying the identities of company directors and subscribers during incorporation. It also expands disqualification rules for directors found to be misleading regulators. These measures intend to prevent the use of 'shell companies' for illegal purposes.

New Reporting and Verification Duties

Companies and partnerships will face expanded duties to verify identities and report any discrepancies to regulators. For example, businesses may need to verify customer identities against Companies House records. The scope of sanctions-related reporting is also widened.

Increased Powers for the Registrar

The registrar will have more ability to reject and remove false documents from company registers. New provisions allow the registrar to query inconsistent information and require companies to resolve discrepancies. The registrar can also allocate unique identifiers and disclose information to combat crime.

Reforms to Company Registers

Public access to registers is reformed to promote transparency while protecting privacy. Sensitive information like home addresses can be concealed from public view. But law enforcement agencies will gain access to further data to conduct investigations.

Civil and Criminal Penalties

The bill introduces new civil and criminal penalties for non-compliance with reporting duties and other corporate transparency rules. Offenses can be applied to both companies and individual officers.

Rules on Cryptoassets

New measures will regulate cryptoassets in the context of confiscation orders, civil recovery, and anti-terrorist financing. This includes provisions to seize, freeze, and sell cryptoassets linked to suspected criminal activity.

The government promotes this bill as crucial to combating illicit finance. But its far-reaching nature raises concerns about excessive bureaucracy and overreach. The impact will depend on how proportionality balances transparency with privacy during implementation. Nonetheless, reforms are overdue to help regulate an evolving corporate landscape where shell companies enable economic crime.

Below we have highlighted changes found in the most recent amended version of the bill that was found on the analysis-date of 23rd July 2023, so it may not reflect latest changes. Those highest up have been flagged as impactful or worthy of public scutiny or attention. These are the likely to be the highest signal parts of the bill; members of the public might benefit from seeing these.

Important: This document is not guaranteed to reflect the content of the bill, and may be entirely inaccurate in its summaries. This is an experimental analysis.

You are urged to read the bill itself on the official parliament bills website: https://bills.parliament.uk/bills/3339

- 🔴 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes a new provision that allows for the issuance of a crypto wallet freezing order, which prohibits the use of a crypto wallet by the person for whom the wallet is administered.
Exemplar quote from bill: ...5) A statutory instrument containing regulations under subparagraph (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. ...(6) For the purposes of this Part— (a) a crypto wallet freezing order is an order that, subject to any exclusions (see paragraph 10Z7BD), prohibits each person by or for whom the crypto wallet to which the order applies is administered from— (i) making withdrawals or payments from the crypto wallet, or (ii) using the crypto wallet in any other way;... (b) a crypto wallet is administered by or for a person if the person is the person to whom services are being provided by a cryptoasset service provider in relation to that crypto wallet. 5 10 15 20 ...
- ‼️ Economic Impact
  This change could potentially impact the value and circulation of cryptoassets, as the use of certain wallets could be prohibited.
- ‼️ Justice System
  This change could potentially impact the rights of individuals or entities who own cryptoassets, as their ability to use their wallets could be restricted.
- 🔴 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection 790LP
This change criminalizes the failure to comply, without reasonable excuse, with certain sections or a direction under certain sections.
Exemplar quote from bill: ...ant officer of the registrable relevant legal entity. (4) In this section “relevant officer” has the meaning given by section 790LK(6). 790LP Offence of failing to comply with sections 790LI to 790LN ...(1) It is an offence for a person to fail, without reasonable excuse, to comply with— (a) any of the following sections— section 790LJ; section 790LL; section 790LM; section 790LN; (b) a direction under section 790LI or 790LK....parency Bill Part 1 — Companies etc 54 section 790LN; (b) a direction under section 790LI or 790LK. (2) Where an offence under this section is committed by a registrable relevant legal entity, every o...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 1112B of the Companies Act 2006
The bill proposes to insert a new section 1112B into the Companies Act 2006, which provides a defence for false statement offences in the interests of national security or for the purposes of preventing or detecting serious crime. The Secretary of State can issue a certificate to a person, exempting them from liability for such offences, and can revoke this certificate at any time.
Exemplar quote from bill: ...5), in subsection (2), at the appropriate place insert— “section 1112B (false statement offences: national security etc defence).” (3) After section 1112A (inserted by section 99 of this Act) insert— ...“1112B False statements offences: national security etc defence (1) A person to whom a certificate is issued by the Secretary of State for the purposes of this section is not liable for the commission of any offence relating to the delivery to the registrar, or the making of a statement, that is misleading, false or deceptive. (2) The Secretary of State may issue a certificate to a person for the purposes of this section only if satisfied that it is necessary for the person to engage in conduct amounting to such an offence— (a) in the interests of national security, or (b) for the purposes of preventing or detecting serious crime. (3) A certificate under this section may be revoked by the Secretary of State at any time.... (4) For the purposes of subsection (2)(b)— (a) “crime” means conduct which— 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 85 (i) constitutes a criminal ...
- ‼️ National Security
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Seizure and detention of cryptoasset-related items
The bill proposes new powers for enforcement officers to seize and detain cryptoasset-related items and cryptoassets themselves if they have reasonable grounds for suspicion. The initial detention period is 48 hours, but this can be extended by a court order. The officers can use any information obtained from the seized items to identify or gain access to a crypto wallet.
Exemplar quote from bill: ... Attorney General may be satisfied by consultation carried out before this section comes into force. Seizure and detention of cryptoasset-related items 303Z26 Seizure of cryptoasset-related items (1) ...An enforcement officer may seize any item of property if the enforcement officer has reasonable grounds for suspecting that the item is a cryptoasset-related item.... (2) If an enforcement officer is lawfully on any premises, the officer may, for the purpose of— (a) determining whether any property is a cryptoasset-related item, or (b) enabling or facilitating the...
- ‼️ Justice System
  The proposed changes could significantly impact the legal processes around cryptoassets, potentially leading to increased seizures and detentions of such assets. This could affect individuals and entities involved in the cryptoasset market.
- ‼️ Economic Impact
  The proposed changes could have significant economic implications, particularly for those involved in the cryptoasset market. The ability for enforcement officers to seize and detain cryptoassets could potentially disrupt market activities and impact the value of these assets.
- ‼️ Digital Privacy
  The proposed changes could have implications for digital privacy, as enforcement officers would be able to use any information obtained from seized cryptoasset-related items to gain access to crypto wallets.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 76 of the Companies Act 2006
The amendment changes the language of the Companies Act 2006, Section 76, to broaden the scope of what constitutes a misleading indication of activities. The new language suggests that any activity that poses a risk of harm to the public, either in the UK or elsewhere, can be considered misleading.
Exemplar quote from bill: ...e at which the name was registered.” (4) In subsection (4), omit paragraph (b) (and the “or” at the end of that paragraph). (5) In subsection (5), omit “, (b)”. 16 Misleading indication of activities ...In section 76 of the Companies Act 2006 (misleading indication of activities), in subsection (1), for “be likely to cause harm to the public” substitute “pose a risk of harm to the public in the United Kingdom or elsewhere”.... 17 Direction to change name used for criminal purposes (1) The Companies Act 2006 is amended as follows. (2) Before section 75 insert— “Provision of misleading information”. (3) Before section 76 ins...
- ‼️ Economic Impact
  This amendment could potentially impact companies that operate both within and outside the UK, as their activities could now be scrutinized for potential harm to the public in any location.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: repeal
Section 1189 of the Companies Act 2006
The bill proposes to repeal section 1189 of the Companies Act 2006, which gives the power to require additional statements in connection with a disqualified person becoming a director or secretary.
Exemplar quote from bill: ...the person— (a) purports to act as director, or (b) acts as shadow director.” (4) Omit section 159 (which is spent). 42 Repeal of power to require additional statements In the Companies Act 2006— (a) ...omit section 1189 (power to require additional statements in connection with disqualified person becoming director or secretary);... (b) in sections 1190(1) and 1191(1) (further provision and offences), omit “or 1189”. “disqualified under the directors disqualification legislation section 159A(2)”. 5 10 15 20 25 30 35 40 Economic ...
- ‼️ Justice System
  This change could potentially reduce oversight and accountability mechanisms for disqualified individuals becoming directors or secretaries.
- ‼️ Economic Impact
  This could potentially allow disqualified individuals to more easily become directors or secretaries, potentially impacting the governance of companies.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 246 of the Companies Act 2006
The bill proposes to substitute section 246 of the Companies Act 2006 with a new provision that allows the registrar to put a director's usual residential address on the public record if they decide in accordance with section 245.
Exemplar quote from bill: ...of a person’s acts as a director).” 45 Registrar’s power to change a director’s service address For section 246 of the Companies Act 2006 substitute— “246 Putting the address on the public record (1) ...If the registrar decides in accordance with section 245 that a director‘s usual residential address is to be put on the public record, the registrar must proceed as if each relevant company had given notice under section 167H— (a) stating a change in the director’s service address, and (b) stating the director’s usual residential address as their new service address.... (2) The registrar must give notice of having done so— (a) to the director, and (b) to every relevant company. (3) The notice must state the date of the registrar’s decision to put the director’s usua...
- ‼️ Justice System
  This change could potentially increase transparency by making directors' residential addresses publicly available.
- ‼️ Privacy and Civil Liberties
  This could potentially impact the privacy of directors by making their residential addresses publicly available.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1110B of the Economic Crime and Corporate Transparency Bill
The bill introduces a new provision that allows the Secretary of State to make regulations for the verification or reverification of an individual's identity by the registrar or an authorised corporate service provider. It also creates offences for failure to comply with these requirements, punishable by imprisonment or a fine.
Exemplar quote from bill: ...d the individual’s identity in accordance with regulations under section 1110B. (6) Regulations under this section are subject to affirmative resolution procedure. 1110B Verification requirements (1) ...The Secretary of State may by regulations make provision for and in connection with verification or reverification of an individual’s identity for the purposes of this Act by the registrar or by an authorised corporate service provider.... (2) The regulations may, in particular, make provision about— (a) the procedure for verifying or reverifying an individual’s identity, including the evidence required; (b) the records that a person w...
- ‼️ Justice System
  (Variously affected)
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1110D of the Companies Act 2006
The bill proposes a new requirement for businesses to obtain specified information about customers, identify discrepancies between this information and that made publicly available by the registrar, and report any discrepancies to the registrar.
Exemplar quote from bill: ...e Transparency Bill Part 1 — Companies etc 73 (3) After section 1110C (inserted by section 65 of this Act) insert— “Discrepancy reporting 1110D Power to require businesses to report discrepancies (1) ...The Secretary of State may by regulations impose requirements on a person who is carrying on business in the United Kingdom (a “relevant person”)— (a) to obtain specified information about a customer (or prospective customer)— (i) before entering into a business relationship with them, or (ii) during a business relationship with them; (b) to identify discrepancies between information so obtained and information made publicly available by the registrar, and (c) to report any discrepancies to the registrar.... (2) The regulations may require the relevant person, when reporting discrepancies, to provide such other information as may be required by the regulations (including information about the relevant pe...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on businesses, as they would need to collect and verify more information about their customers. However, it could also help to prevent economic crime by making it harder for individuals to use businesses for fraudulent purposes.
- ‼️ Privacy and Civil Liberties
  This change could potentially impact the privacy of customers, as businesses would be required to collect more information about them. However, the bill does not specify what kind of information would need to be collected, so the extent of the impact on privacy is unclear.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: deletion
Sections 1095 and 1095A of the Companies Act 2006
The bill proposes to delete sections 1095 and 1095A of the Companies Act 2006, which relate to the rectification of the register on application to the registrar and the rectification of the register to resolve a discrepancy.
Exemplar quote from bill: ...ublic inspection), in subsection (1), for paragraph (f) substitute— “(f) any application or other document delivered to the registrar under section 1094 (removal of material from the register);”. (5) ...Omit section 1095 (rectification of register on application to registrar). (6) Omit section 1095A (rectification of register to resolve a discrepancy).... 83 Rectification of the register under court order (1) Section 1096 of the Companies Act 2006 (rectification of the register under court order) is amended as follows. (2) For subsection (3) substitut...
- ‼️ Justice System
  The deletion of these sections could potentially make it more difficult for companies to rectify errors or discrepancies in the register, as they would no longer be able to apply to the registrar for rectification.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790ZH of the Companies Act 2006
The bill introduces a new offence for companies and their officers who fail to comply with restrictions on the use or disclosure of information as per regulations under subsection 790ZG.
Exemplar quote from bill: ...xample, the use or disclosure of particulars of a person in that person‘s capacity as a member or director of the company). 790ZH Offence of failing to comply with regulations under section 790ZG (1) ...If a company contravenes a restriction on the use or disclosure of information imposed by virtue of regulations under subsection 790ZG, an offence is committed by— (a) the company, and (b) every officer of the company who is in default.... (2) A person guilty of an offence under this section is liable on summary conviction— (a) in England and Wales, to a fine; (b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Corporate Governance
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1112 of the Companies Act 2006
The bill amends section 1112 of the Companies Act 2006, making it an offence to deliver or cause to be delivered to the registrar a document or statement that is misleading, false or deceptive in a material particular.
Exemplar quote from bill: ... subsection (3), for the entry relating to sections 1112 and 1113 substitute— “sections 1112, 1112A and 1113 (enforcement).” (3) For section 1112 substitute— “1112 False statements: basic offence (1) ...It is an offence for a person, without reasonable excuse, to— (a) deliver or cause to be delivered to the registrar, for any purpose of the Companies Acts, a document that is misleading, false or deceptive in a material particular, or (b) make to the registrar, for any purpose of the Companies Acts, a statement that is misleading, false or deceptive in a material particular.... (2) Where the offence is committed by a firm, every officer of the firm who is in default also commits the offence. (3) A person guilty of an offence under this section is liable— (a) on summary conv...
- ‼️ Justice System
  (Variously affected)
- ‼️ Corporate Governance
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8U of the Limited Partnerships Act 1907
The bill proposes a new offence for general partners who fail to comply with the notification requirements in sections 8R, 8S, or 8T of the Limited Partnerships Act 1907.
Exemplar quote from bill: ...otice under subsection (1) in respect of the person. (5) A notice under this section must be given within the period of 14 days beginning with the day on which the limited partnership was registered. ...8U Failure to notify information about partners (1) If the general partners fail to comply with section 8R, 8S or 8T an offence is committed by each general partner who is in default.... (2) But where the general partner is a legal entity, it does not commit an offence as a general partner in default unless one of its managing officers is in default. (3) Where any such offence is com...
- ‼️ Justice System
  This change could potentially increase the number of offences committed by general partners in limited partnerships, which could have implications for the justice system.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 4 of the Limited Partnerships Act 1907
The bill proposes amendments to the Limited Partnerships Act 1907, establishing that if general partners in a limited partnership fail to comply with a requirement, each general partner in default commits an offence. If the general partner is a legal entity, it does not commit an offence unless one of its managing officers is in default. If an offence is committed by a general partner that is a legal entity, any managing officer of the legal entity also commits the offence if they are in default. Penalties for such offences are also outlined.
Exemplar quote from bill: ...ng extend a period specified in a requirement under this section. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 119 ...(4) If the general partners in a limited partnership fail to comply with a requirement under this section an offence is committed by each general partner who is in default.... (5) But where the general partner is a legal entity, it does not commit an offence as a general partner in default unless one of its managing officers is in default. (6) Where any such offence is com...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 6 of the Limited Partnerships Act 1907
The bill proposes amendments to the Limited Partnerships Act 1907, specifically section 6, which deals with modifications of general law in case of limited partnerships. The amendments include changes to the conditions under which a limited partnership is dissolved, the responsibilities of general partners and limited partners in the event of dissolution, and the enforcement of these duties.
Exemplar quote from bill: ...dance with section 38 of the Partnership Act 1890)”; (c) in subsection (3), after “firm” insert “(including debts and obligations incurred in accordance with section 38 of the Partnership Act 1890)”. ...(3) In section 6 (modifications of general law in case of limited partnerships)— (a) in subsection (1), after “firm”, in the third place it occurs, insert “(including debts and obligations incurred in accordance with section 38 of the Partnership Act 1890)”; (b) for subsection (1A) substitute— “(1A) Section 6A (actions by limited partners) makes provision supplementing subsection (1).”; (c) in subsection (2) omit “or bankruptcy”; (d) after subsection (2) insert— “(2A) A limited partnership shall not be dissolved under section 33(1) of the Partnership Act 1890 by the bankruptcy of a partner. (2B) A limited partnership is dissolved if— (a) it ceases to have any general partners, (b) it ceases to have any limited partners, or (c) each general partner is either insolvent or disqualified under the directors disqualification legislation (see section 8J(3)), irrespective of whether they became insolvent or disqualified before or after this subsection comes into force.”; (e) omit subsection (3); (f) for subsections (3A) and (3B) substitute— “(3A) If a limited partnership is dissolved at a time when the partnership has at least one general partner who is— (a) solvent, and (b) not disqualified under the directors disqualification legislation, the general partners at that time who are solvent and are not so disqualified must either wind up the partnership’s affairs or take all reasonable steps to ensure that its affairs are wound up by a person who is not a partner at that time. (3B) If a limited partnership is dissolved at a time when the partnership does not have a general partner who is— (a) solvent, and (b) not disqualified under the directors disqualification legislation, the limited partners at that time who are solvent must take all reasonable steps to ensure that the partnership’s affairs are wound up by a person who is not a limited partner at that time. (3BA) For enforcement of the duties under subsections (3A) and (3B) see section 29.”; (g) omit subsection (3C).... (4) In section 6A (private fund limited partnerships: actions by limited partners)— 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 28 of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section 28 in the Limited Partnerships Act 1907, which allows for the winding up of limited partnerships on grounds of public interest. The Secretary of State, the Scottish Ministers, or the Department for the Economy in Northern Ireland may present a petition to the court for a limited partnership to be wound up if it appears expedient in the public interest. The court may wind up the limited partnership if it is of the opinion that it is just and equitable for it to be wound up.
Exemplar quote from bill: ...ted partnerships on grounds of public interest After section 27 of the Limited Partnerships Act 1907 (inserted by section 141 of this Act) insert— “Winding up: applications and petitions to the court ...28 Winding up limited partnerships on grounds of public interest (1) Where it appears to the Secretary of State that it is expedient in the public interest for a limited partnership to be wound up, the Secretary of State may present a petition to the court for it to be wound up. (2) Where it appears to the Scottish Ministers that it is expedient in the public interest for a limited partnership registered in Scotland to be wound up, the Scottish Ministers may present a petition to the court for it to be wound up. (3) Where it appears to the Department for the Economy in Northern Ireland that it is expedient in the public interest for a limited partnership registered in Northern Ireland to be wound up, the Department may present a petition to the court for it to be wound up. (4) The Secretary of State must consult the Scottish Ministers before presenting a petition under subsection (1) in respect of a limited partnership registered in Scotland. (5) The Secretary of State must consult the Department for the Economy in Northern Ireland before presenting a petition under subsection (1) in respect of a limited partnership registered in Northern Ireland. (6) If a petition is presented under this section, the court may wind up the limited partnership if the court is of the opinion that it is just and equitable for it to be wound up. (7) The power in subsection (6) does not limit any other power the court has in the same circumstances....uitable for it to be wound up. (7) The power in subsection (6) does not limit any other power the court has in the same circumstances.” 129 Winding up dissolved limited partnerships After section 28 o...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 29 of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section 29 in the Limited Partnerships Act 1907, which deals with the winding up of dissolved limited partnerships. If a limited partnership is dissolved and there has been a failure to properly wind up the partnership, the court may make any order it considers appropriate. The court may make an order on an application by the Secretary of State, the Scottish Ministers, the Department for the Economy in Northern Ireland, or any other person appearing to the court to have sufficient interest.
Exemplar quote from bill: ...ther power the court has in the same circumstances.” 129 Winding up dissolved limited partnerships After section 28 of the Limited Partnerships Act 1907 (inserted by section 128 of this Act) insert— “...29 Winding up: applications and petitions to the court (1) Where a limited partnership is dissolved and it appears to the court that there has been a failure to wind up the limited partnership under section 6(3A) or (3B) properly or at all, the court may make any order it considers appropriate, including an order— (a) for the purposes of enforcing the duty in section 6(3A) or (3B), (b) in connection with the performance of that duty, or (c) to wind up the limited partnership. (2) The court may make an order under subsection (1) on an application by any of the following— (a) the Secretary of State; (b) the Scottish Ministers, but only if the limited partnership is registered in Scotland or they appear to the court to have sufficient interest for any other reason; (c) the Department for the Economy in Northern Ireland, but only if the limited partnership is registered in Northern Ireland or the Department appears to the court to have sufficient interest for any other reason; (d) any other person appearing to the court to have sufficient interest. (3) The Secretary of State must consult the Scottish Ministers before making an application for an order under subsection (1) in respect of a limited partnership registered in Scotland. (4) The Secretary of State must consult the Department for the Economy in Northern Ireland before making an application for an order under subsection (1) in respect of a limited partnership registered in Northern Ireland. (5) The power in subsection (1) does not limit any other power the court has in the same circumstances....” 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 123 130 Power to make provision about winding up After section 29 of...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 16A of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section in the Limited Partnerships Act 1907, which outlines the types of information that must be included in documents delivered to the registrar. This includes the registered email address of the limited partnership, the email address of the named contact for a general partner's managing officer, and protected date of birth and residential address information. The registrar is not required to retain this material for longer than necessary, and the protection of date of birth and residential address information does not cease when the individual ceases to be a partner, registered officer, or named contact.
Exemplar quote from bill: ...sses by registrar) other than an order or direction of the court; 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 127 ...(b) so much of any document delivered to the registrar as is required to contain— (i) a limited partnership’s registered email address, (ii) the email address of the named contact for a general partner’s managing officer, (iii) protected date of birth information, or (iv) protected residential address information;... (c) so much of any statement delivered to the registrar under any of the following provisions as is required to confirm that an individual is an individual whose identity is verified (within the mean...
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 16C of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section in the Limited Partnerships Act 1907, which restricts the registrar from disclosing protected date of birth and residential address information, except in certain circumstances. These circumstances include disclosure to a credit reference agency.
Exemplar quote from bill: ...16B of the Limited Partnerships Act 1907 (inserted by section 135 of this Act) insert— “Restriction on disclosure of information by registrar 16C Restriction on disclosure of information by registrar ...(1) The registrar must not disclose protected date of birth information or protected residential address information except— (a) in accordance with subsection (2) or (3), (b) in accordance with section 16E (disclosure of protected residential address information under court order), or (c) as permitted by section 1110F of the Companies Act 2006 (general powers of disclosure by the registrar).... (2) The registrar may disclose protected date of birth information or protected residential address information if the same information is required to be made available for public inspection as a res...
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 16D of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section in the Limited Partnerships Act 1907, which restricts a limited partner from using or disclosing protected residential address and date of birth information, except for communicating with the individual concerned. If a partner uses or discloses information in contravention of this section, they commit an offence, as does any managing officer of a partner that is a legal entity.
Exemplar quote from bill: ...arency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 130 Restriction on use or disclosure of information by partners 16D Restriction on use or disclosure of information by partners ...(1) A limited partner must not— (a) use or disclose protected residential address information, except for communicating with the individual concerned, or (b) use or disclose protected date of birth information.... (2) A general partner must not use or disclose protected residential address information, except— (a) for communicating with the individual concerned, (b) in order to comply with any requirement of t...
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 16E of the Economic Crime and Corporate Transparency Bill
The bill introduces a provision that allows the court to order the disclosure of protected residential address information by the appropriate limited partnership or by the registrar under certain conditions.
Exemplar quote from bill: ...ships Chapter 1 — Limited partnerships etc. 131 Disclosure of protected residential address information under court order 16E Disclosure of protected residential address information under court order ...(1) The court may make an order for the disclosure of protected residential address information by the appropriate limited partnership or by the registrar if— (a) there is evidence that service of documents at a service address other than the individual’s usual residential address is not effective to bring them to the notice of the individual, or (b) it is necessary or expedient for the information to be provided in connection with the enforcement of an order or decree of the court, and the court is otherwise satisfied that it is appropriate to make the order.... (2) An order for disclosure by the registrar may be made only if— (a) the appropriate limited partnership does not have the protected residential address information, or (b) the appropriate limited p...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the disclosure of protected residential address information.
- ‼️ Privacy and Civil Liberties
  This change could potentially impact the privacy of individuals associated with limited partnerships.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022
The amendment requires the registrar not to make certain information available for public inspection, which was delivered to the registrar by virtue of the regulations.
Exemplar quote from bill: ...hern Ireland, by a fine not exceeding level 5 on the standard scale.” Inspection of the register and protection of information 161 Material unavailable for public inspection: verification information ...In section 16 of the Economic Crime (Transparency and Enforcement) Act 2022 (verification of registrable beneficial owners and managing officers), in subsection (2), after paragraph (c) insert— “(d) requiring the registrar not to make available for public inspection certain information delivered to the registrar by virtue of the regulations;”... 162 Material unavailable for public inspection For sections 22 to 24 of the Economic Crime (Transparency and Enforcement) Act 2022 substitute— “22 Material unavailable for inspection (1) The followin...
- ‼️ Privacy and Civil Liberties
  This amendment could potentially impact privacy and civil liberties by limiting the amount of information available for public inspection.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Sections 22 to 24 of the Economic Crime (Transparency and Enforcement) Act 2022
The bill substitutes sections 22 to 24 of the Economic Crime (Transparency and Enforcement) Act 2022 with new provisions detailing the types of material that must not be made available for public inspection.
Exemplar quote from bill: ...— “(d) requiring the registrar not to make available for public inspection certain information delivered to the registrar by virtue of the regulations;” 162 Material unavailable for public inspection ...For sections 22 to 24 of the Economic Crime (Transparency and Enforcement) Act 2022 substitute— “22 Material unavailable for inspection......) The following material must not, so far as it forms part of the register, be made available by the registrar for public inspection— (a) so much of any application or other document delivered to the ...
- ‼️ Privacy and Civil Liberties
  This substitution could potentially impact privacy and civil liberties by further specifying the types of information that are protected from public inspection.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 25 of the Economic Crime (Transparency and Enforcement) Act 2022
The bill substitutes section 25 of the Economic Crime (Transparency and Enforcement) Act 2022 with new provisions giving the Secretary of State the power to make regulations requiring the registrar to protect certain information on the register.
Exemplar quote from bill: ...e following have the meaning given by section 22(2)— “protected date of birth information”; “protected residential address information”; “protected trusts information”.” 163 Protection of information ...For section 25 of the Economic Crime (Transparency and Enforcement) Act 2022 substitute— “25 Power to make regulations protecting material......) The Secretary of State may by regulations make provision requiring the registrar, on application— (a) not to make available for public inspection any information on the register relating to an indiv...
- ‼️ Privacy and Civil Liberties
  This substitution could potentially impact privacy and civil liberties by giving the Secretary of State the power to make regulations protecting certain information on the register.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 27 of the Economic Crime (Transparency and Enforcement) Act 2022
The bill amends section 27 of the Economic Crime (Transparency and Enforcement) Act 2022, which deals with resolving inconsistencies in the register. The amendment changes the process for resolving inconsistencies in the information contained in a document delivered to the registrar by an overseas entity.
Exemplar quote from bill: ...e regulations. (8) Regulations under this section are subject to affirmative resolution procedure.” Correction or removal of material on the register 164 Resolving inconsistencies in the register (1) ...Section 27 of the Economic Crime (Transparency and Enforcement) Act 2022 (resolving inconsistencies in the register) is amended as follows......2) For subsections (1) and (2) substitute— “(1) Where it appears to the registrar that the information contained in a document delivered to the registrar by an overseas entity in connection with the r...
- ‼️ Justice System
  This amendment could potentially impact the justice system by changing the process for resolving inconsistencies in the register.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 15 of the Economic Crime (Transparency and Enforcement) Act 2022
The amendment makes it an offence for a person to fail to comply with a notice under section 12 or 13 without a reasonable excuse. If the offence is committed by a legal entity, every officer of the entity who is in default also commits the offence. It is a defence for a person charged with this offence to prove that the requirement to give information was frivolous or vexatious. The penalties for this offence vary depending on the jurisdiction and whether the conviction is summary or on indictment.
Exemplar quote from bill: ...rovision of any other enactment”. Offences 166 False statement offences in connection with information notices For section 15 of the Economic Crime (Transparency and Enforcement) Act 2022 substitute— ...“15 Failure to comply with notice under section 12 or 13 (1) A person who, without reasonable excuse, fails to comply with a notice under section 12 or 13 commits an offence. (2) Where the offence is committed by a legal entity, the offence is also committed by every officer of the entity who is in default. (3) It is a defence for a person charged with an offence under this section to prove that the requirement to give information was frivolous or vexatious. (4) A person guilty of an offence under this section is liable— (a) on summary conviction in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both); (b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both); (c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both); (d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).... 15A False statements under section 12 or 13: basic offence (1) A person who is given a notice under section 12 or 13 commits an offence if, in purported compliance with the notice and without reasona...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sections 182 and 183
The proposed changes outline conditions and protections for the disclosure of customer information in the context of economic crime. The changes allow for the disclosure of customer information under certain conditions, such as when there is a belief that the information will assist in carrying out relevant actions, or when there are concerns about risks of economic crime. The changes also provide protections against breaches of confidence and civil liability for those making the disclosures, subject to data protection legislation.
Exemplar quote from bill: ... the regulated sector, and (b) in circumstances prescribed, in relation to the business or the person carrying it on, by regulations made by the Secretary of State for the purposes of this paragraph. ...(4) The request condition is that— (a) the disclosure is made in response to a request made by B, and (b) at the time the request is made, B has reason to believe that A holds information relating to the customer the disclosure of which will or may assist B in carrying out relevant actions of B.... (5) The warning condition is that A, due to concerns about risks of economic crime, has decided to take safeguarding action (or would have decided to take such action but for the customer having ceas...
- ‼️ Privacy and Civil Liberties
  The proposed changes could have significant implications for privacy and civil liberties, as they allow for the disclosure of customer information under certain conditions. However, these disclosures are subject to data protection legislation, which may mitigate some privacy concerns.
- ‼️ Economic Impact
  The proposed changes could have an economic impact by potentially deterring economic crime. However, they could also potentially impact businesses that may need to implement new procedures to comply with these disclosure requirements.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 111C of the Economic Crime and Corporate Transparency Act 2023
The bill proposes that the Law Society may apply to the High Court for an order requiring a person to provide specified information or produce specified documents. This is applicable to persons who do not fall within section 111A(3).
Exemplar quote from bill: ...er. (5) A person may take copies of or extracts from a document produced to them pursuant to an order under this section. 111C Provision of information relating to economic crime by other persons (1) ...The Law Society may apply to the High Court for an order requiring a person who does not fall within section 111A(3) to— (a) provide information, or information of a description, specified in the order, or (b) produce documents, or documents of a description, specified in the order.... (2) The High Court may make an order under this section only if it is satisfied— (a) that it is likely that the information or document is in the possession or custody of, or under the control of, th...
- ‼️ Justice System
  (Variously affected)
- ‼️ Human Rights
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 111D of the Economic Crime and Corporate Transparency Act 2023
The bill proposes that the Lord Chancellor may amend this Part to allow sections 111A to 111C to apply to an approved regulator other than the Law Society. The Lord Chancellor may also specify the persons to whom notices under section 111A(1) may be given by that approved regulator.
Exemplar quote from bill: ...e Economic Crime and Corporate Transparency Act 2023. Other approved regulators: information powers relating to economic crime 111D Order to confer information powers on other approved regulators (1) ...The Lord Chancellor may by order amend this Part so as to— (a) provide for sections 111A to 111C to apply in relation to an approved regulator other than the Law Society as they apply in relation to the Law Society, and (b) specify the persons to whom notices under section 111A(1) may be given by that approved regulator.... (2) The Lord Chancellor may make an order under this section in relation to an approved regulator only if— (a) the Board has made a recommendation in accordance with section 111E in relation to that ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Political Power
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 2A of the Criminal Justice Act 1987
The bill proposes to amend Section 2A of the Criminal Justice Act 1987 by omitting certain words and subsections related to the Director's pre-investigation powers in relation to bribery and corruption.
Exemplar quote from bill: ...t 5 — Miscellaneous 188 (4), after paragraph (n) insert— “(na) section 111D (order to confer information powers on other approved regulators);”. 199 Serious Fraud Office: pre-investigation powers (1) ...In section 2A of the Criminal Justice Act 1987 (Director’s pre-investigation powers in relation to bribery and corruption: foreign officers etc), omit the following— (a) in the heading, the words from “in relation to” to the end; (b) in subsection (1), the words from “in a case” to the end; (c) subsection (5).... (2) In Schedule 1 to the Bribery Act 2010 (consequential amendments), omit paragraph 2 and the preceding italic heading. Reports on payments to governments 200 Reports on payments to governments regu...
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Regulation 16 of the Reports on Payments to Governments Regulations 2014
The bill proposes to substitute Regulation 16 of the Reports on Payments to Governments Regulations 2014 with a new regulation concerning false statements.
Exemplar quote from bill: ...2010 (consequential amendments), omit paragraph 2 and the preceding italic heading. Reports on payments to governments 200 Reports on payments to governments regulations: false statement offences etc ...For regulation 16 of the Reports on Payments to Governments Regulations 2014 (S.I. 2014/3209) substitute— “16 False statements: basic offence......) It is an offence for a person, without reasonable excuse, to— (a) deliver or cause to be delivered to the registrar, for the purposes of these Regulations, a document that is misleading, false or de...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 202 of the Economic Crime and Corporate Transparency Act 2023
The bill proposes to amend section 143 of the Policing and Crime Act 2017 to include supplemental provisions in connection with any prohibition or requirement in the definition of "financial sanctions legislation".
Exemplar quote from bill: ...and lay reports under subsection (1) ceases with the laying of the first report on or after 1 January 2030. Sanctions enforcement: monetary penalties 202 Sanctions enforcement: monetary penalties (1) ...In section 143 of the Policing and Crime Act 2017 (interpretation), in subsection (4) (meaning of “financial sanctions legislation”), in paragraph (f)— (a) the words from “contains” to the end become sub-paragraph (i); (b) at the end of that sub-paragraph insert—“; (ii) makes supplemental provision (within the meaning of section 1(6) of that Act) in connection with any prohibition or requirement mentioned in sub-paragraph (i).”... (2) The Sanctions and Anti-Money Laundering Act 2018 is amended as follows. (3) In section 17 (enforcement), in subsection (9), in paragraph (a), after “(2)” insert “or makes supplemental provision i...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Regulations authorising the imposition of a monetary penalty
The bill introduces a provision that allows for the imposition of a monetary penalty without considering the person's knowledge or intention in breaching a prohibition or failing to comply with a requirement.
Exemplar quote from bill: ... Policing and Crime Act 2017 may not be made unless the regulations also make provision of the kind mentioned in section 17(9) to disapply Part 8 of that Act in respect of that breach or failure. (3) ...Regulations authorising the imposition of a monetary penalty may make provision that, in determining for the purposes of the regulations whether a person has breached a prohibition, or failed to comply with a requirement, any requirement relating to the person’s knowledge or intention is to be ignored.... (4) Regulations authorising the imposition of a monetary penalty must provide that— (a) a person is not liable to such a penalty in respect of conduct amounting to an offence if— 5 10 15 20 25 30 35 ...
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, section 242
The bill proposes to amend section 242 of the Companies Act 2006 to allow the registrar to disclose protected information as permitted by section 1110F (general powers of disclosure by the registrar).
Exemplar quote from bill: ... — Consequential amendments 211 “register of secretaries”. SCHEDULE 3 Section 91 DISCLOSURE OF INFORMATION: CONSEQUENTIAL AMENDMENTS Companies Act 2006 1 The Companies Act 2006 is amended as follows. ...2 In section 242 (protected information: restriction on disclosure by registrar), in subsection (3)— (a) omit the “or” at the end of paragraph (a); (b) at the end of paragraph (b) insert “, or (c) as permitted by section 1110F (general powers of disclosure by the registrar).”... 3 (1) Section 243 (permitted disclosure by the registrar) is amended as follows. (2) For subsection (2) substitute— “(2) The registrar may disclose protected information to a credit reference agency....
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Power of the Secretary of State to amend definitions
The bill grants the Secretary of State the power to amend the definitions of "Cryptoasset service provider", "cryptoasset exchange provider", and "custodian wallet provider".
Exemplar quote from bill: ...rs in order to hold, store and transfer cryptoassets. (4) In the definition of “cryptoasset exchange provider” in subsection (3), “cryptoasset” includes a right to, or interest in, a cryptoasset. (5) ...The Secretary of State may by regulations amend the definitions in subsection (3) (including by amending subsection (4))....” 13 After section 67A insert— “67AA Destruction of seized cryptoassets (1) This section applies to cryptoassets which are held by a person and which have been seized by an appropriate officer under a...
- ‼️ Political Power
  This provision grants significant power to the Secretary of State to shape the regulatory landscape of the cryptoasset industry.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Power to destroy seized cryptoassets
The bill introduces a provision that allows a magistrates’ court to order the destruction of seized cryptoassets under certain conditions.
Exemplar quote from bill: ... “215AA Destruction of seized cryptoassets (1) This section applies to cryptoassets which are held by a person and which have been seized by an appropriate officer under a relevant seizure power. (2) ...A magistrates’ court may by order authorise an appropriate officer to destroy the cryptoassets if— (a) a confiscation order is made against the person by whom the cryptoassets are held, (b) a receiver has not been appointed under section 198 in relation to the cryptoassets, and (c) either— (i) it is not reasonably practicable to realise the cryptoassets, or (ii) there are reasonable grounds to believe that the realisation of the cryptoassets would be contrary to the public interest, having regard in particular to how likely it is that the entry of the cryptoassets into general circulation would facilitate criminal conduct by any person.... (3) An order under this section— (a) must set out the court’s assessment of the market value of the cryptoassets to which it relates; (b) may authorise the destruction of cryptoassets only to the ext...
- ‼️ Justice System
  This provision could have significant implications for how cryptoassets are treated in legal proceedings.
- ‼️ Human Rights
  The destruction of seized assets could potentially infringe on property rights, depending on how the provision is implemented.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 4 of the Proceeds of Crime Act 2002
The bill introduces a new provision that allows enforcement officers to search for cryptoasset-related items if they are lawfully on any premises and have reasonable grounds for suspicion.
Exemplar quote from bill: ...credited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453. Searches ...303Z21 Searches (1) If an enforcement officer— (a) is lawfully on any premises, and (b) has reasonable grounds for suspecting that there is on the premises a cryptoasset-related item, the enforcement officer may search for the cryptoasset-related item there.... (2) For the purposes of this Chapter, a “cryptoasset-related item” is an item of property that is, or that contains or gives access to information that is, likely to assist in the seizure under this ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Digital Privacy
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002
The bill proposes a new provision for the payment of compensation in cases where cryptoassets were seized or a crypto wallet freezing order was applied for by an accredited financial investigator who is not an officer of Revenue and Customs, a constable, an SFO officer or a National Crime Agency officer. The Secretary of State is given the power to amend this provision by regulations. However, this power is exercisable by the Department of Justice and not by the Secretary of State under certain conditions.
Exemplar quote from bill: ...raud Office. (8) If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by a National Crime Agency officer, the compensation is to be paid by the National Crime Agency. ...(9) If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by an accredited financial investigator who was not an officer of Revenue and Customs, a constable, an SFO officer or a National Crime Agency officer, the compensation is to be paid as follows—...t 5 of the Proceeds of Crime Act 2002 273 an officer of Revenue and Customs, a constable, an SFO officer or a National Crime Agency officer, the compensation is to be paid as follows— (a) in the case ...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the seizure of cryptoassets and the application of crypto wallet freezing orders. It could also impact the roles and responsibilities of different governmental bodies in these processes.
- ‼️ Economic Impact
  This change could have implications for the economic outcomes of individuals and entities involved in cases where cryptoassets are seized or crypto wallet freezing orders are applied.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 148, Section 157, Section 230, Section 278, Section 290, Section 303E, Section 303Z17A, Section 311A of the Proceeds of Crime Act 2002
The bill proposes amendments to several sections of the Proceeds of Crime Act 2002. These amendments include changes to the conditions under which property can be detained, the conditions for the recoverable amount, and the introduction of new sections that allow victims and other owners to apply for the release of money under an account freezing order, and that define the role of financial investigators in relation to cryptoassets.
Exemplar quote from bill: ...on 157 (recoverable amount)— (a) in subsection (4)(c), for “or 303Z14(4)” substitute “, 303Z14(4), 303Z41(4), 303Z45(3) or 303Z60(4)”; (b) in subsection (4)(d), after “303Q(1)” insert “or 303Z44(1)”. ...(3) In section 148 (free property)— (a) in subsection (2)— (i) in paragraph (ea), for “or 10Z2(3)” substitute “, 10Z2(3), 10Z7AG(1), 10Z7BB(2), 10Z7CA(3), 10Z7CE(3) or 10Z7DG(3)”;... (ii) in paragraph (f), for “or 303Z14(4)” substitute “, 303Z14(4), 303Z32(1), 303Z37(2), 303Z41(4), 303Z45(3) or 303Z60(4)”; (b) in subsection (3)— (i) after paragraph (b) insert— “(ba) it is detaine...
- ‼️ Justice System
  The proposed changes could significantly affect the legal processes related to the detention and recovery of property, particularly in relation to cryptoassets. This could have implications for the enforcement of the law and the rights of individuals who claim ownership of detained property.
- ‼️ Economic Impact
  The amendments could potentially impact the handling of economic crimes involving cryptoassets, which could in turn have broader implications for the economy and financial systems.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes a new provision that allows an authorised officer to retain, dispose of, or destroy any unclaimed cryptoasset-related item a year after its release.
Exemplar quote from bill: ...t 2001 305 (5) The following persons are within this sub-paragraph— (a) in relation to England and Wales and Northern Ireland, an authorised officer; (b) in relation to Scotland, a procurator fiscal. ...(6) If any cryptoasset-related item which has been released is not claimed within the period of a year beginning with the date on which it was released, an authorised officer may— (a) retain the item and deal with it as they see fit, (b) dispose of the item, or (c) destroy the item.... (7) The powers in sub-paragraph (6) may be exercised only— (a) where the authorised officer has taken reasonable steps to notify— (i) the person from whom the item was seized, and (ii) any other pers...
- ‼️ Economic Impact
  This change could potentially impact the value and circulation of cryptoassets, as unclaimed assets could be removed from circulation.
- ‼️ Justice System
  This change could potentially impact the rights of individuals or entities who own cryptoassets, as their assets could be disposed of or destroyed if not claimed within a year.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes a new provision that prevents the release of property connected to an offence until the conclusion of proceedings against the person charged with the offence.
Exemplar quote from bill: ...graph (4) of the release; (b) into the Scottish Consolidated Fund if— (i) the item was directed to be released by the sheriff, or (ii) the sheriff was notified under sub-paragraph (4) of the release. ...(9) If (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the property is connected, the property is not to be released under this paragraph (and so is to continue to be detained) until the proceedings are concluded.... PART 4BB TERRORIST CRYPTOASSETS: CRYPTO WALLET FREEZING ORDERS Interpretation 10Z7B(1) In this Part— (a) “cryptoasset exchange provider” means a firm or sole practitioner who by way of business provi...
- ‼️ Justice System
  This change could potentially impact the rights of individuals or entities who own property connected to an offence, as their property could be detained until the conclusion of proceedings.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sub-paragraphs (1) to (4) of paragraph 10Z7CF of the Economic Crime and Corporate Transparency Bill
The bill introduces provisions for the continuation of a crypto wallet freezing order pending appeal. If the court or sheriff decides to make an order in relation to some but not all of the cryptoassets, or not to make an order at all, the person who made the application can apply for the freezing order to continue. If granted, the freezing order will continue to have effect until the end of a 48-hour period or until an appeal against the decision is determined or disposed of.
Exemplar quote from bill: ...pensation to be paid by virtue of sub-paragraph (11) is to be paid in the same way that compensation is to be paid under paragraph 10Z7CM. Continuation of crypto wallet freezing order pending appeal ...10Z7CF(1) This paragraph applies where, on an application under paragraph 10Z7CA in relation to a crypto wallet to which a crypto wallet freezing order applies— (a) the magistrates’ court or sheriff decides— (i) to make an order under paragraph 10Z7CA(3) in relation to some but not all of the cryptoassets to which the application related, or (ii) not to make an order under paragraph 10Z7CA(3), or (b) if the application is transferred in accordance with paragraph 10Z7CE(1), the High Court or Court of Session decides— (i) to make an order under paragraph 10Z7CE(3) in relation to some but not all of the cryptoassets to which the application related, or (ii) not to make an order under paragraph 10Z7CE(3).... (2) The person who made the application under paragraph 10Z7CA may apply without notice to the court or sheriff that made the decision referred to in sub-paragraph (1) for an order that the crypto wa...
- ‼️ Justice System
  The proposed change could potentially increase fairness in the justice system by allowing for the continuation of a crypto wallet freezing order pending appeal, thus ensuring that assets are not prematurely released.
- ‼️ Economic Impact
  The proposed change could have economic implications for individuals whose cryptoassets are subject to a freezing order, as the continuation of the order could potentially prevent them from accessing their assets.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sub-paragraphs (1) to (3) of paragraph 10Z7CH of the Economic Crime and Corporate Transparency Bill
The bill introduces provisions for extended time for appealing in certain cases where a deproscription order is made. If a successful application for an order relies on the fact that an organisation is proscribed, and an application for a deproscription order in respect of the organisation is refused by the Secretary of State, an appeal against the making of an order may be brought at any time before the end of the period of 30 days beginning with the date on which the deproscription order comes into force.
Exemplar quote from bill: ...rty is not to be released under this paragraph (and so is to continue to be detained) until the proceedings are concluded. Extended time for appealing in certain cases where deproscription order made ...10Z7CH(1) This paragraph applies where— (a) a successful application for an order under paragraph 10Z7CA relies (wholly or partly) on the fact that an organisation is proscribed, (b) an application under section 4 of the Terrorism Act 2000 for a deproscription order in respect of the organisation is refused by the Secretary of State, (c) the property forfeited by the order under paragraph 10Z7CA was seized under this Schedule on or after the date of the refusal of that application, (d) an appeal against that refusal is allowed under section 5 of the Terrorism Act 2000, (e) a deproscription order is made accordingly, and (f) if the order is made in reliance on section 123(5) of the Terrorism Act 2000, a resolution is passed by each House of Parliament under section 123(5)(b) of that Act.... (2) Where this paragraph applies, an appeal under paragraph 10Z7CG against the making of an order under paragraph 10Z7CA, and against the making (in addition) of any order under paragraph 10Z7CE(7), ...
- ‼️ Justice System
  The proposed change could potentially increase fairness in the justice system by providing an extended time period for appealing in certain cases where a deproscription order is made, thus ensuring that individuals have sufficient time to challenge such orders.
- ‼️ National Security
  The proposed change could potentially impact national security by allowing for the deproscription of organisations that were previously proscribed, which could potentially lead to an increase in the activities of such organisations.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 6 (financial information)
The bill amends the definition of "financial institution" in paragraph 6(1) of Schedule 6 to include "cryptoasset exchange provider" and "custodian wallet provider".
Exemplar quote from bill: ... Ireland, means lay magistrate;”; ““terrorist cryptoasset” has the meaning given by paragraph 10Z7A(1);”. PART 2 AMENDMENTS TO THE TERRORISM ACT 2000 6 The Terrorism Act 2000 is amended as follows. 7 ...In Schedule 6 (financial information)— (a) in paragraph 6(1) (meaning of financial institution)— (i) omit the “and” after paragraph (ha), and (ii) after paragraph (i) insert— “(j) a cryptoasset exchange provider, and (k) a custodian wallet provider....”; (b) after sub-paragraph (1AA) insert— “(1AB) For the purposes of sub-paragraph (1)(j), “cryptoasset exchange provider” means a firm or sole practitioner who by way of business provides one or more ...
- ‼️ Economic Impact
  This change could have significant implications for cryptoasset exchange providers and custodian wallet providers, potentially subjecting them to regulations and oversight typically applied to financial institutions.
- ‼️ Justice System
  This change could potentially affect how cryptoasset exchange providers and custodian wallet providers are treated within the justice system.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Regulations on use or disclosure of profit and loss accounts for certain companies
The bill proposes the insertion of a new section that allows the Secretary of State to make regulations requiring the registrar to refrain from making available for public inspection or disclosing profit and loss accounts, or parts of them, for certain companies, except in specified circumstances.
Exemplar quote from bill: ...urposes of this section;” 16 After Clause 56 30 Insert the following new Clause— “Use or disclosure of profit and loss accounts for certain companies (1) The Companies Act 2006 is amended as follows. ...(2) After section 468 insert— “468A Use or disclosure of profit and loss accounts for certain companies (1) The Secretary of State may by regulations make provision requiring the registrar, on application or otherwise— (a) not to make available for public inspection profit and loss accounts, or parts of them, delivered to the registrar under— section 443A (micro-entities), or section 444 (other small companies); (b) to refrain from disclosing such accounts, or parts of them, except in specified circumstances.... (2) Regulations under subsection (1) which provide for the making of an application may make provision as to— (a) who may make an application; (b) the grounds on which an application may be made; (c)...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8, Clause 157, Clause 158, Clause 160, Clause 164, Clause 165, Clause 166, Clause 172, Clause 173, Clause 174
The bill proposes several changes, including requiring registered overseas entities to deliver certain information to the registrar prior to the acquisition or disposal of any qualifying estate in the UK. It also allows the Secretary of State to make regulations requiring the registrar to disclose relevant protected trusts information to a person. The bill also creates offences for failures to comply with conditions imposed by regulations. The Secretary of State must consult the Scottish Ministers before making regulations that would be within the legislative competence of the Scottish Parliament. The bill also amends the Economic Crime (Transparency and Enforcement) Act 2022 regarding financial penalties and offences. It also amends the Proceeds of Crime Act 2002 regarding offences of failing to disclose. The bill also changes the conditions under which an authorised NCA officer can request assistance from a foreign FIU.
Exemplar quote from bill: ...tion 4 or, if information has been previously delivered to the registrar under this section, any change to the latest information provided under this section, including the date such change occurred. ...(8B) A registered overseas entity must deliver to the registrar the information required in accordance with subsection (8A), or deliver to the registrar a statement that there has been no change to the information currently held on the register, no more than 14 days prior to the acquisition or disposal of any qualifying estate in the United Kingdom.... (8C) For the purposes of this section, “qualifying estate” has the meaning given by paragraph 1 of Schedule 4A to the Land Registration Act 2002.” (3) In section 8, at the end of subsection (3) omit ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- ‼️ National Security
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Failure to prevent fraud)
The Secretary of State is given the power to modify the section related to the failure to prevent fraud, specifically the definition of "large organisation".
Exemplar quote from bill: ...n 474 of that Act); (b) in relation to any other relevant body, has a corresponding meaning; “year of the fraud offence” is to be interpreted in accordance with section (Failure to prevent fraud)(1). ...(6) The Secretary of State may by regulations modify this section (other than this subsection and subsections (7) and (9)) and section (Large organisations: parent undertakings) for the purpose of altering the meaning of “large organisation” in section (Failure to prevent fraud)(1).... (7) The Secretary of State may (whether or not the power in subsection (6) has been exercised) by regulations— (a) omit the words “which is a large organisation” in section (Failure to prevent fraud)...
- ‼️ Political Power
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Penalties for False Statements
The bill introduces penalties for making false statements in compliance with certain sections of the Act. These penalties vary depending on the jurisdiction and the severity of the offence, with the maximum penalty being two years imprisonment or a fine (or both) on conviction on indictment.
Exemplar quote from bill: ... if the person fails, without reasonable excuse, to comply with the notice. (2) Where the person is a legal entity, the offence is also committed by every officer of the entity who is in default. (3) ...A person guilty of an offence under this paragraph is liable— (a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both); (b) on summary conviction— (i) in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both); (ii) in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both); (iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both).... Offence of failing to provide information 14 (1) A person commits an offence if the person fails, without reasonable excuse, to comply with a duty under section 790G, 790H or 790HA. (2) Where the per...
- ‼️ Justice System
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Power to Exclude Descriptions of Registrable Beneficial Owner
The bill proposes that the Secretary of State may make regulations to exclude certain types of people from being treated as registrable beneficial owners of an overseas entity.
Exemplar quote from bill: ...ences) apply in relation to information notices under this paragraph as they apply in relation to information notices under section 12. Power to exclude descriptions of registrable beneficial owner 9 ...(1) The Secretary of State may by regulations provide that, for the purposes of any provision of this Schedule specified in the regulations, a person of a description so specified is not to be treated as a registrable beneficial owner of an overseas entity.... (2) Regulations under sub-paragraph (1) are subject to the negative resolution procedure.” 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscatio...
- ‼️ Political Power
  This change could potentially increase the power of the Secretary of State to determine who is considered a registrable beneficial owner.
- ‼️ Justice System
  This change could potentially impact the justice system by altering who can be considered a registrable beneficial owner.
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 242 and 243 of the Companies Act 2006
The bill proposes amendments to sections 242 and 243 of the Companies Act 2006, removing references to "use or" in relation to protected information and permitted use or disclosure by the registrar.
Exemplar quote from bill: ... 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 81 94 Use of directors’ address information by registrar (1) The Companies Act 2006 is amended as follows. (2) ...In section 242 (protected information: restriction on use or disclosure by registrar)— (a) in subsection (3), omit “use or” in each place it occurs; (b) in the heading, omit “use or”. (3) In section 243 (permitted use or disclosure by registrar)— (a) omit subsection (1); (b) in the heading, omit “use or”.... Overseas companies 95 Change of addresses of officers of overseas companies by registrar In section 1046 of the Companies Act 2006 (overseas companies: registration of particulars), after subsection ...
- ‼️ Corporate Governance
  (Variously affected)
- ‼️ Privacy
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 1087 of the Companies Act 2006
The bill proposes an amendment to section 1087 of the Companies Act 2006 to include "or 1097C" after "1097B" and "or principal office address" after "service address". This change expands the scope of material not available for public inspection to include the principal office address.
Exemplar quote from bill: ... Secretary of State considers necessary or expedient in consequence of any provision made by the regulations. (12) Regulations under this section are subject to affirmative resolution procedure.” (3) ...In section 1087 (material not available for public inspection), in subsection (1)(ga)— (a) after “1097B” (inserted by section 103 of this Act) insert “or 1097C”; (b) after “service address” (inserted by section 103 of this Act) insert “or principal office address”.... 105 Service of documents on people with significant control In section 1140 of the Companies Act 2006 (service of documents on directors, secretaries and others), in subsection (2), after paragraph (...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Privacy
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 16B of the Limited Partnerships Act 1907
The bill proposes the insertion of a new section in the Limited Partnerships Act 1907, which states that the registrar is not required to make information contained in records relating to a dissolved or deregistered limited partnership available for public inspection after a period of 20 years from the date of dissolution or deregistration.
Exemplar quote from bill: ...tered limited partnerships After section 16A of the Limited Partnerships Act 1907 (inserted by section 134 of this Act) insert— “16B Records relating to dissolved or deregistered limited partnerships ...(1) This section applies where a limited partnership is dissolved or deregistered under section 26. (2) The registrar need not make any information contained in records relating to the limited partnership available for public inspection at any time after the end of the period of 20 years beginning with the date on which the limited partnership is dissolved or deregistered.... (3) The registrar of companies for England and Wales may, at any time after the period of two years beginning with the date on which the limited partnership is dissolved or deregistered, direct that ...
- ‼️ Privacy and Civil Liberties
  (Variously affected)
- 🟠 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Part 1, in paragraph 1(1)
The bill amends the definition of "terrorist cash" in paragraph 1(1) of Part 1, replacing "and 4B" with "to 4BD".
Exemplar quote from bill: ...evant crypto wallet freezing order”, in relation to converted cryptoassets detained under paragraph 10Z7DE, means the crypto wallet freezing order mentioned in sub-paragraph (1) of that paragraph.” 3 ...In Part 1, in paragraph 1(1) (terrorist cash), for “and 4B” substitute “to 4BD”.... 4 In Part 4B (forfeiture of terrorist money held in bank and building society accounts), after paragraph 10Z6 insert— “Victims etc 10Z6A(1) A person who claims that money in respect of which an accou...
- ‼️ National Security
  This change could potentially affect how "terrorist cash" is defined and handled in the context of national security.
- ‼️ Justice System
  This change could potentially affect how "terrorist cash" is treated within the justice system.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Companies Act 2006
The bill introduces a new provision that allows the Secretary of State to direct a company to change its name if it appears that the name has been used, or is intended to be used, to facilitate an offence involving dishonesty or deception.
Exemplar quote from bill: ...efore section 75 insert— “Provision of misleading information”. (3) Before section 76 insert— “Misleading indication of activities and names used for criminal purposes”. (4) After section 76 insert— ...“76A Power to direct change of name used for criminal purposes (1) The Secretary of State may direct a company to change its name if it appears to the Secretary of State that the name has been used, or is intended to be used, by the company to facilitate— (a) the commission of an offence involving dishonesty or deception, or (b) the carrying out of conduct that, if carried out in any part of the United Kingdom, would amount to such an offence.... (2) The direction must be in writing and must specify the period within which the company is to change its name. (3) The period must be a period of at least 28 days beginning with the date of the dir...
- ‼️ Economic Impact
  This provision could have a significant impact on companies that are found to be using their names for deceptive or dishonest purposes. It could also deter such behavior in the future.
- ‼️ Justice System
  This provision strengthens the powers of the Secretary of State in combating economic crime and corporate malfeasance.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 167M of the Companies Act 2006
The bill proposes a new provision that prohibits an individual from acting as a director of a company unless their identity is verified.
Exemplar quote from bill: ... 167L of the Companies Act 2006 (inserted by Schedule 2 to this Act) insert— “Directors: duties relating to ID verification and notification 167M Prohibition on director acting unless ID verified (1) ...An individual must not act as a director of a company unless the individual’s identity is verified (see section 1110A).... (2) A company must ensure that an individual does not act as a director unless the individual’s identity is verified (see section 1110A). (3) A person who contravenes subsection (1) commits an offenc...
- ‼️ Justice System
  This change could potentially increase accountability and transparency among company directors by ensuring that only individuals with verified identities can hold office.
- ‼️ Economic Impact
  This could impact the ease with which individuals can become directors, potentially affecting the governance of companies.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 84A
The bill introduces definitions for "cryptoasset" and "crypto wallet", providing a legal basis for the regulation and control of these digital entities.
Exemplar quote from bill: ...hat paragraph, or (c) the power conferred on a magistrates’ court by section 67AA (power to order destruction of cryptoassets).” Interpretation and miscellaneous provision 18 After section 84 insert— ...“84A Cryptoassets etc (1) “Cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically. (2) “Crypto wallet” means— (a) software, (b) hardware, (c) a physical item, or (d) any combination of the things mentioned in paragraphs (a) to (c), which is used to store the cryptographic private key that allows cryptoassets to be accessed.... (3) “Cryptoasset-related item” has the meaning given in section 47C(5B). (4) The circumstances in which a cryptoasset is taken to be “destroyed” include circumstances where it is— (a) disposed of, (b...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Schedule 1 to the Anti-terrorism, Crime and Security Act 2001
The bill proposes the insertion of a new part into Schedule 1 of the Anti-terrorism, Crime and Security Act 2001, which provides for the seizure and detention of terrorist cryptoassets. It also provides a definition for "cryptoasset".
Exemplar quote from bill: ...TS TO THE ANTI-TERRORISM, CRIME AND SECURITY ACT 2001 1 Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (forfeiture of terrorist property) is amended as follows. 2 After Part 4B insert— ...“PART 4BA SEIZURE AND DETENTION OF TERRORIST CRYPTOASSETS Interpretation 10Z7A(1) In this Schedule— “cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically;... “crypto wallet” means— (a) software, (b) hardware, (c) a physical item, or (d) any combination of the things mentioned in paragraphs (a) to (c), which is used to store the cryptographic private key t...
- ‼️ National Security
  This change could potentially have a significant impact on national security, as it introduces new measures to combat the use of cryptoassets for terrorist purposes.
- ‼️ Justice System
  This change could potentially affect the legal processes related to the seizure and detention of assets used for terrorist purposes.
- ‼️ Economic Impact
  This change could potentially have a significant impact on the cryptoasset market, as it introduces new regulatory measures that could affect the operation of crypto wallets.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Registrar's power to strike off company registered on false basis
The bill proposes a new power for the registrar to strike off a company from the register if they have reasonable cause to believe that any information contained in the application for the registration of the company, or in any application for restoration of the company to the register, is misleading, false or deceptive in a material particular.
Exemplar quote from bill: ...efore Clause 69 54 Insert the following new Clause— “Registrar’s power to strike off company registered on false basis (1) The Companies Act 2006 is amended as follows. (2) After section 1002 insert— ...“Registrar’s power to strike off company registered on false basis 1002A Power to strike off company registered on false basis (1) The registrar may strike a company’s name off the register if the registrar has reasonable cause to believe that— (a) any information contained in the application for the registration of the company, or in any application for restoration of the company to the register, is misleading, false or deceptive in a material particular, or (b) any statement made to the registrar in connection with such an application is misleading, false or deceptive in a material particular.... (2) In subsection (1) the reference to an application includes any documents delivered to the registrar in connection with the application. (3) The registrar may not exercise the power in subsection ...
- ‼️ Economic Impact
  This change could have a significant impact on the economic landscape by providing a mechanism to remove companies from the register that have provided false or misleading information. This could potentially deter fraudulent activity and improve the integrity of the business environment.
- ‼️ Justice System
  This change could impact the justice system by providing a new legal tool to combat fraudulent or deceptive business practices. It could potentially increase the workload of the registrar and the courts as they deal with cases involving companies that have been struck off the register.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
New Clause - Power to strike out certain claims
The bill proposes a new clause that requires the power to make Civil Procedure Rules to be exercised in a way that ensures that a claim can be struck out before trial if the court determines that the claim is a SLAPP (Strategic Lawsuit Against Public Participation) claim and that the claimant has failed to show that it is more likely than not that the claim would succeed at trial.
Exemplar quote from bill: ...ed offence, or (ii) under the law of Scotland of inciting the commission of a listed offence,” 145 Page 164, line 39, after “(b)” insert “, (ba)” After Clause 180 146 Insert the following new Clause— ...“Power to strike out certain claims Strategic litigation against public participation: requirement to make rules of court (1) The power to make Civil Procedure Rules must be exercised so as to secure that Civil Procedure Rules include provision for ensuring that a claim may be struck out before trial where the court determines— (a) that the claim is a SLAPP claim (see section (Meaning of “SLAPP claim”)), and (b) that the claimant has failed to show that it is more likely than not that the claim would succeed at trial.... 42 (2) Rules made in compliance with subsection (1) may include rules about how a determination under that subsection is to be made, including (in particular)— (a) rules for determining the nature an...
- ‼️ Justice System
  (Variously affected)
- ‼️ Freedom of Information
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
New Clause - Attributing criminal liability for economic crimes to certain bodies
The bill proposes a new clause that attributes criminal liability for economic crimes to certain bodies. If a senior manager of a body corporate or partnership commits a relevant offence, the organisation is also guilty of the offence.
Exemplar quote from bill: ...hts and Fundamental Freedoms agreed by the Council of Europe at Rome on 4 November 1950 as it has effect for the time being in relation to the United Kingdom.” 148 Insert the following new Clause— 44 ...“Attributing criminal liability for economic crimes to certain bodies Attributing criminal liability for economic crimes to certain bodies (1) If a senior manager of a body corporate or partnership (“the organisation”) acting within the actual or apparent scope of their authority commits a relevant offence after this section comes into force, the organisation is also guilty of the offence.... This is subject to subsection (3). (2) “Relevant offence” means an act which constitutes— (a) an offence listed in Schedule (Criminal liability of bodies: economic crimes) (“a listed offence”), (b) a...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section (Failure to prevent fraud)
The bill proposes that a corporate body or partnership can be held liable if an associated person commits a fraud offence with the intention of benefiting the body or any person to whom the associate provides services on behalf of the body. However, the body can defend itself if it can prove that it had reasonable prevention procedures in place at the time of the offence.
Exemplar quote from bill: ... the same meaning as in section (Attributing criminal liability for economic crimes to certain bodies).” 151 Insert the following new Clause— 46 “Failure to prevent fraud Failure to prevent fraud (1) ...A relevant body is guilty of an offence if, in a financial year of the body (“the year of the fraud offence”), a person who is associated with the body (“the associate”) commits a fraud offence intending to benefit (whether directly or indirectly)— (a) the relevant body, or (b) any person to whom, or to whose subsidiary undertaking, the associate provides services on behalf of the relevant body.... (2) A relevant body is also guilty of an offence under subsection (1) if— (a) an employee of the relevant body commits a fraud offence intending to benefit (whether directly or indirectly) the releva...
- ‼️ Justice System
  This change could significantly impact how fraud offences are prosecuted, potentially holding corporate bodies and partnerships more accountable for the actions of their associates.
- ‼️ Economic Impact
  This could have financial implications for corporate bodies and partnerships, as they could face fines if found guilty of such offences.
- 🟢🟢 Flagged as ?positive?
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section (Failure to prevent fraud and money laundering)
A new clause is inserted that makes a relevant body guilty of an offence if an associated person commits a fraud or money laundering offence with the intention to benefit the relevant body or any person to whom the associate provides services on behalf of the relevant body.
Exemplar quote from bill: ... to prevent fraud) of the Economic Crime and Corporate Transparency Act 2023 (failure to prevent fraud offences).”” 159 Insert the following new Clause— “Failure to prevent fraud and money laundering ...(1) A relevant body is guilty of an offence if a person who is associated with the body (“the associate”) commits a fraud or money laundering offence intending to benefit (whether directly or indirectly)— (a) the relevant body, or (b) any person to whom, or to whose subsidiary, the associate provides services on behalf of the relevant body.... (2) The relevant body is not guilty of an offence under subsection (1)(a) where the conduct underlying the offence was intended to cause harm to the body. 53 (3) It is a defence for the relevant body...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 9 of the Companies Act 2006
The bill proposes to insert a new requirement in the Companies Act 2006 that subscribers must declare their intention to form the company for lawful purposes.
Exemplar quote from bill: ... others of unlawful activities. (2) In Objective 2 the reference to “the register” includes any records kept by the registrar under any enactment.” Company formation 2 Statement as to lawful purposes ...In section 9 of the Companies Act 2006 (registration documents), in subsection (2)— (a) omit the “and” at the end of paragraph (c); (b) at the end of paragraph (d) insert “, and (e) that the subscribers wish to form the company for lawful purposes.”... 3 Information about subscribers (1) The Companies Act 2006 is amended as follows. (2) In section 9 (registration documents)— (a) after subsection (3) insert— “(3A) The application must contain— (a) a...
- ‼️ Economic Impact
  This change could potentially deter the formation of companies for illicit purposes, thus promoting economic integrity.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 9 of the Companies Act 2006
The bill proposes to insert new requirements for the registration of companies, including the provision of detailed information about subscribers and their eligibility to act as directors.
Exemplar quote from bill: ...7 Insert the following new Clause— “Information about subscribers (1) The Companies Act 2006 is amended as follows. 2 (2) In section 9 (registration documents)— (a) after subsection (3) insert— “(3A) ...The application must contain— (a) a statement of the required information about each of the subscribers to the memorandum of association (see section 9A), (b) a statement that none of the subscribers to the memorandum of association is disqualified under the directors disqualification legislation (see section 159A(2)), (c) if any of them would be so disqualified but for the permission of a court to act, a statement to that effect, in respect of each of them, specifying— (i) the subscriber’s name, (ii) the court by which permission was given, and (iii) the date on which permission was given, and (d) if any of them would be disqualified under the directors disqualification legislation by virtue of section 11A of the Company Directors Disqualification Act 1986 or Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002 (designated persons under sanctions legislation) but for the authority of a licence of the kind mentioned in that section or Article, a statement to that effect, in respect of each of them, specifying— (i) the subscriber’s name, and (ii) the date on which it was issued and by whom it was issued.”;...(b) after subsection (6) insert— “(7) In subsection (3A)(c) “permission of a court to act” means permission of a court under a provision mentioned in column 2 of the table in section 159A(2).” (3) Aft...
- ‼️ Economic Impact
  This change could potentially increase transparency in company formation and deter illicit activities.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 12 of the Companies Act 2006
The bill proposes to insert a new requirement for the verification of the identity of each individual named as a director in the statement of proposed officers.
Exemplar quote from bill: ... 1 — Companies etc 4 4 Proposed officers: identity verification (1) Section 12 of the Companies Act 2006 (statement of proposed officers) is amended as follows. (2) After subsection (2) insert— “(2A) ...The statement must, in the case of each individual named as a director, confirm that the individual’s identity is verified (see section 1110A)....” (3) The provision that may be made under section 206(7) in connection with the coming into force of this section includes— (a) provision requiring a company incorporated in pursuance of an applicati...
- ‼️ Economic Impact
  This change could potentially increase transparency in company formation and deter illicit activities.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 12 of the Companies Act 2006
The bill proposes to insert a new requirement for the statement of proposed officers to include a declaration by the subscribers that no one named as a director is disqualified or otherwise ineligible for appointment as a director.
Exemplar quote from bill: ...ion 1060 of the Companies Act 2006). 5 Proposed officers: disqualification (1) The Companies Act 2006 is amended as follows (2) In section 12 (statement of proposed officers), at the end insert— “(4) ...The statement must also include a statement by the subscribers to the memorandum of association that no one named as a director is— (a) disqualified under the directors disqualification legislation (see section 159A(2)), or (b) otherwise ineligible by virtue of any enactment for appointment as a director.... (5) Where any of the persons named as directors would be disqualified under the directors disqualification legislation but for the permission of a court to act, the statement must also include a stat...
- ‼️ Economic Impact
  This change could potentially increase transparency in company formation and deter illicit activities.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The bill introduces a new provision that allows the Secretary of State to direct a company to change its name if it appears that the company's registration by that name was in contravention of any requirement imposed by this Part, or if the Secretary of State had proper grounds to form an opinion at the time of registration.
Exemplar quote from bill: ...tion to change name wrongly registered (1) The Companies Act 2006 is amended as follows. (2) After section 76A (inserted by section 17 of this Act) insert— “Direction to change name wrongly registered...“76B Direction to change name wrongly registered (1) The Secretary of State may direct a company to change its name if— (a) it appears to the Secretary of State that the company’s registration by that name was in contravention of any requirement imposed by this Part, or (b) the Secretary of State did not, at the time at which the name was registered, form the opinion mentioned in section 53, 56A or 57A, but had proper grounds for doing so.... (2) The direction must be in writing and must specify the period within which the company is to change its name. (3) The period must be a period of at least 28 days beginning with the date of the dir...
- ‼️ Economic Impact
  This provision could impact companies that have registered their names in contravention of the requirements of this Part. It could also deter such behavior in the future.
- ‼️ Justice System
  This provision strengthens the powers of the Secretary of State in ensuring compliance with the requirements of the Companies Act.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167N of the Companies Act 2006
The bill proposes a new provision that prohibits a person from acting as a director of a company until notice is given under section 167G.
Exemplar quote from bill: ... of a company otherwise than on its incorporation, and (b) notice under section 167G of the person having done so has not been given within the period mentioned in subsection (6) of that section. (2) ...The person may not act as a director of the company until notice is given under section 167G.... (3) A person who contravenes subsection (2) commits an offence. (4) Where the offence is committed by a firm, every officer of the firm who is in default also commits the offence. 5 10 15 20 25 30 35...
- ‼️ Justice System
  This change could potentially increase accountability and transparency among company directors by ensuring that notice is given before a person can act as a director.
- ‼️ Economic Impact
  This could impact the ease with which individuals can become directors, potentially affecting the governance of companies.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: substitution
Sections 1087A and 1087B
The bill proposes to substitute sections 1087A and 1087B with new provisions that protect the date of birth information of directors and registrable persons. The registrar is prohibited from making available for public inspection any document containing relevant date of birth information. The bill also limits the application of this provision to documents delivered before it comes fully into force and provides exceptions for certain old documents. The registrar is also prohibited from disclosing relevant date of birth information except in accordance with certain provisions or as permitted by section 1110F.
Exemplar quote from bill: ...ime and Corporate Transparency Bill Part 1 — Companies etc 43 substitute— “(da) relevant date of birth information that section 1087A provides is not to be made available for public inspection;”. (3) ...For sections 1087A and 1087B substitute— “1087A Protection of date of birth information (1) The registrar must not make available for public inspection— (a) so much of any document delivered to the registrar as is required to contain relevant date of birth information; (b) any record of the information contained in part of a document that is unavailable because of paragraph (a). (2) This section has limited application in relation to documents delivered before it comes fully into force: see section 1087B. (3) “Relevant date of birth information” means— (a) information as to the day of the month (but not the month or year) on which a director (or proposed director) was born; (b) information as to the day of the month (but not the month or year) on which a registrable person in relation to the company was born. (4) Information about a director (or proposed director) or registrable person does not cease to be relevant date of birth information when they cease to be a director (or proposed director) or registrable person. (5) Subsection (1)(b) does not affect the availability for public inspection of the same information contained in material derived from a part of a document that was not required to contain the information. (6) In this section “registrable person”, in relation to a company, has the meaning given by section 790C(4). 1087B Protection of date of birth information in old documents (1) This section limits the extent to which section 1087A applies in relation to documents delivered to the registrar before that section comes fully into force (“old documents”). (2) Section 1087A does not apply in relation to any old documents registered before 10 October 2015. (3) Section 1087A does not apply in relation to any old document that is— (a) a statement of a company’s proposed officers delivered under section 9 in circumstances where the subscribers gave notice of election under section 167A (election to keep information on central register) in respect of the company’s register of directors when the statement was delivered; (b) a document delivered by the company under section 167D (duty to notify registrar of changes while election in force); (c) a statement of initial significant control delivered under section 9 in circumstances where the subscribers gave notice of election under section 790X in respect of the company when the statement was delivered; (d) a document containing a statement or updated statement delivered by the company under section 790X(6)(b) or (7) 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 44 (statement accompanying notice of election made after incorporation); (e) a document delivered by the company under section 790ZA (duty to notify registrar of changes while election in force). (4) Section 1087A does not apply in relation to any old document if— (a) the document is— (i) a statement of proposed officers delivered under section 9, or (ii) notice given under section 167 of a person having become a director of the company, (b) after the delivery of the document an election was made under section 167A in respect of the company’s register of directors, and (c) the relevant date of birth information relates to a person who was a director of the company when that election took effect. (5) References in subsections (3)(a) to (e) and (4)(a) to (c) to a provision of this Act are to the provision as it had effect at the time at which the document was delivered (the provisions in question were repealed by the Economic Crime and Corporate Transparency Act 2023). 1087C Disclosure of date of birth information (1) The registrar must not disclose relevant date of birth information except— (a) in accordance with subsection (2) or (3), or (b) as permitted by section 1110F (general powers of disclosure by the registrar). (2) The registrar may disclose relevant date of birth information if the information is made available for public inspection. (3) The registrar may disclose relevant date of birth information to a credit reference agency (as defined by section 243(7)). (4) Subsections (3) to (8) of section 243 (permitted disclosure of address information by the registrar) apply for the purposes of subsection (3) as for the purposes of that section (reading references there to protected information as references to relevant date of birth information). (5) In this section “relevant date of birth information” has the meaning given by section 1087A(3).”... Accounts and reports 53 Filing obligations of micro-entities Before section 444 of the Companies Act 2006 (but after the italic heading before that section) insert— “443A Filing obligations of micro-...
- ‼️ Privacy and Civil Liberties
  The proposed change enhances the privacy and civil liberties of directors and registrable persons by protecting their date of birth information from public inspection and disclosure.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 241 of the Companies Act 2006
The bill introduces a new provision making it an offence for a company and its officers to use or disclose information in contravention of subsection (1) of Section 241 of the Companies Act 2006.
Exemplar quote from bill: ...closure of directors’ address information by companies In section 241 of the Companies Act 2006 (protected information: restriction on use or disclosure by company), after subsection (2) insert— “(3) ...If a company uses or discloses information in contravention of subsection (1), an offence is committed by— (a) the company, and (b) every officer of the company who is in default.... (4) A person guilty of an offence under this section is liable on summary conviction— (a) in England and Wales, to a fine; (b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the ...
- ‼️ Justice System
  This change could potentially enhance the ability of the justice system to hold companies and their officers accountable for the misuse of information.
- ‼️ Privacy and Civil Liberties
  This change could potentially enhance privacy protections by making it an offence for companies and their officers to misuse information.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 790ZG of the Companies Act 2006
The bill amends Section 790ZG of the Companies Act 2006 to allow the Secretary of State to make regulations requiring a company to refrain from using or disclosing relevant PSC particulars except in specified circumstances, and to confer power on the registrar to make an order to this effect on application.
Exemplar quote from bill: ...ale.” 93 Use or disclosure of PSC information by companies (1) The Companies Act 2006 is amended as follows. (2) For section 790ZG substitute— “790ZG Power to make regulations protecting material (1) ...The Secretary of State may by regulations— (a) require a company to refrain from using, or refrain from disclosing, relevant PSC particulars except in circumstances specified in the regulations; (b) confer power on the registrar, on application, to make an order requiring a company to refrain from using, or refrain from disclosing, relevant PSC particulars except in circumstances specified in the regulations.... (2) “Relevant PSC particulars” means such particulars of a person with significant control over the company as may be prescribed. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill...
- ‼️ Privacy and Civil Liberties
  This change could potentially enhance privacy protections by allowing for regulations that restrict the use and disclosure of relevant PSC particulars.
- ‼️ Justice System
  This change could potentially enhance the ability of the justice system to regulate the use and disclosure of relevant PSC particulars.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 16 of the Limited Partnerships Act 1907
The bill proposes to replace the existing section 16 of the Limited Partnerships Act 1907 with a new provision that allows any person to inspect the register of limited partnerships and require a copy of any material on the register that is available for inspection.
Exemplar quote from bill: ...6 relating to limited partnerships;”. (3) Omit sections 13 and 14. (4) For section 16 substitute— “The register of limited partnerships 16 Inspection and copies of the register of limited partnerships...“(1) Any person may— (a) inspect the register of limited partnerships; (b) require a copy of any material on the register of limited partnerships that is available for inspection.... (2) The right of inspection extends to the originals of documents delivered to the registrar in hard copy form if, and only if, the record kept by the registrar of the contents of the document is ill...
- ‼️ Freedom of Information
  This change could potentially increase the transparency and accessibility of information about limited partnerships.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Guidance about preventing fraud offences
The Secretary of State is required to issue guidance about procedures that relevant bodies can implement to prevent associated persons from committing fraud offences as mentioned in section 188(1).
Exemplar quote from bill: ... section 188 is to be paid out of the partnership assets. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 5 — Miscellaneous 181 192 Guidance about preventing fraud offences ...(1) The Secretary of State must issue guidance about procedures that relevant bodies can put in place to prevent persons associated with them from committing fraud offences as mentioned in section 188(1).... (2) The Secretary of State may from time to time revise the whole or any part of the guidance issued under this section. (3) The Secretary of State must publish— (a) any guidance issued under this se...
- ‼️ Political Power
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Release of detained cryptoassets
The bill proposes a new provision that allows a person who claims ownership of detained cryptoassets to apply for their release.
Exemplar quote from bill: ...omic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 321 Victims etc: detained cryptoassets 10Z7CK(1) ...A person who claims that any cryptoassets detained under this Schedule belong to the person may apply for some or all of the cryptoassets to be released.... (2) An application under sub-paragraph (1) is to be made— (a) in England and Wales or Northern Ireland, to a magistrates’ court; (b) in Scotland, to the sheriff. (3) The application may be made in th...
- ‼️ Human Rights
  This change could potentially protect the property rights of individuals whose cryptoassets have been detained, by providing a mechanism for them to apply for the release of these assets.
- ‼️ Justice System
  This change could potentially increase the workload of the courts, as they may need to handle more applications for the release of detained cryptoassets.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Compensation for detention of cryptoassets
The bill proposes a new provision that allows for compensation to be paid to a person who has suffered loss as a result of the detention of their cryptoassets or the making of a crypto wallet freezing order, if no order is made under certain paragraphs of the bill.
Exemplar quote from bill: ...om whom cryptoassets were seized include a reference to a person by or for whom the crypto wallet was administered immediately before the crypto wallet freezing order was made. Compensation 10Z7CM(1) ...This paragraph applies if no order is made under paragraph 10Z7CA, 10Z7CD or 10Z7CE in respect of cryptoassets detained under this Schedule or held in a crypto wallet that is subject to a crypto wallet freezing order under paragraph 10Z7BB.... (2) Where this paragraph applies, the following may make an application to the relevant court for compensation— (a) a person to whom the cryptoassets belong or from whom they were seized; (b) a perso...
- ‼️ Human Rights
  This change could potentially protect the property rights of individuals whose cryptoassets have been detained or whose crypto wallets have been frozen, by providing a mechanism for them to seek compensation for their loss.
- ‼️ Justice System
  This change could potentially increase the workload of the courts, as they may need to handle more applications for compensation.
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Guidance about preventing fraud offences)
The Secretary of State is required to issue guidance about procedures that relevant bodies can implement to prevent associated persons from committing fraud offences.
Exemplar quote from bill: ...e balance sheet total More than £18 million net (or £21.6 million gross) Aggregate number of employees More than 250. 51 156 Insert the following new Clause— “Guidance about preventing fraud offences ...(1) The Secretary of State must issue guidance about procedures that relevant bodies can put in place to prevent persons associated with them from committing fraud offences as mentioned in section (Failure to prevent fraud)(1).... (2) The Secretary of State may from time to time revise the whole or any part of the guidance issued under this section. (3) The Secretary of State must publish— (a) any guidance issued under this se...
- ‼️ Justice System
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 790D and 790E
The bill proposes to substitute sections 790D and 790E with new provisions that impose a duty on companies to find out about persons with significant control and to give notices to such persons.
Exemplar quote from bill: ...rences to a company obtaining confirmation of information are to be read accordingly).”” 60 178 Page 184, line 18, leave out paragraphs 10 to 13 and insert— “10 For sections 790D and 790E substitute— ...“790CB Duty to find out about persons with significant control A company to which this Part applies must take reasonable steps to find out if there is anyone who is a registrable person or a registrable relevant legal entity in relation to the company and, if so, to identify them. 790D Company’s duty to give notices to persons with significant control... (1) A company to which this Part applies must give a notice to a person under this section if— (a) the company knows or has cause to believe that the person is a registrable person or a registrable r...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢🟢 Flagged as ?positive?
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 790C
The bill proposes to insert a new section after section 790C to clarify the meaning of "confirmation" in the context of this Part of the Act.
Exemplar quote from bill: ...onal provision(1)” 176 Page 183, line 38, leave out paragraph 9 and insert— “9 In section 790C (key terms), omit subsection (10).” 177 Page 184, line 17, at end insert— “9A After section 790C insert— ...“790CA References to “confirmation” etc of information For the purposes of this Part a company has had confirmation of— (a) a person’s status as a registrable person or a registrable relevant legal entity in relation to the company, (b) the required particulars of a person (see section 790K), (c) any other information about a person, if the person has supplied that information to the company whether or not in pursuance of any duty imposed by this Part (and references to a company obtaining confirmation of information are to be read accordingly).”...” 60 178 Page 184, line 18, leave out paragraphs 10 to 13 and insert— “10 For sections 790D and 790E substitute— “790CB Duty to find out about persons with significant control A company to which this ...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Company formation
The bill proposes new requirements for company formation, including a statement of lawful purposes, information about subscribers, identity verification for proposed officers, and disqualification provisions for proposed officers and persons with initial significant control.
Exemplar quote from bill: ...HL Bill 138 58/3 Economic Crime and Corporate Transparency Bill [AS AMENDED IN GRAND COMMITTEE] CONTENTS PART 1 COMPANIES ETC The registrar of companies 1 The registrar’s objectives Company formation ...2 Statement as to lawful purposes 3 Information about subscribers 4 Proposed officers: identity verification 5 Proposed officers: disqualification 6 Persons with initial significant control: disqualification 7 Persons with initial significant control: identity verification... Company names 8 Names for criminal purposes 9 Names suggesting connection with foreign governments etc 10 Names containing computer code 11 Prohibition on re-registering name following direction 12 P...
- ‼️ Economic Impact
  These changes could significantly impact the process of company formation, potentially deterring fraudulent or criminal activity.
- ‼️ Justice System
  The introduction of disqualification provisions could have implications for the justice system, potentially increasing the number of cases related to company formation.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Sanctions and Anti-Money Laundering Act 2018
The insertion amends the Sanctions and Anti-Money Laundering Act 2018 to include the power to impose director disqualification sanctions.
Exemplar quote from bill: ...or paragraph (4A) substitute— “(4A) In this Article “relevant provisions of the companies legislation” has the meaning given by Article 6(3ZA).” 35 Power to impose director disqualification sanctions ...(1) The Sanctions and Anti-Money Laundering Act 2018 is amended as follows. (2) In section 1 (power to make sanctions regulations), in subsection (5), after paragraph (a) insert— “(ab) impose director disqualification sanctions (see section 3A);”.... (3) After section 3 insert— “3A Director disqualification sanctions (1) For the purposes of section 1(5)(ab) regulations “impose director disqualification sanctions” if they provide for designated pe...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Company Directors Disqualification Act 1986
The insertion amends the Company Directors Disqualification Act 1986 to include a new section 11A, which makes it an offence for a person subject to director disqualification sanctions to act as a director of a company or to be involved in the promotion, formation, or management of a company.
Exemplar quote from bill: ...s any licences provided for under subsection (3A), make any provision mentioned (in relation to licences) in subsection (3).” 36 Disqualification of persons designated under sanctions legislation: GB ...(1) The Company Directors Disqualification Act 1986 is amended as follows. (2) After section 11 insert— “11A Designated persons under sanctions legislation (1) It is an offence for a person who is subject to director disqualification sanctions to act as a director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company (but see subsection (2)).... (2) Subsection (1) does not apply— (a) to the extent that an exception from subsection (1) has been created by virtue of section 15(3A) of the Sanctions and AntiMoney Laundering Act 2018, or (b) to a...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Companies Act 2006, New Sections 113A to 113I
New sections 113A to 113I are inserted into the Companies Act 2006. These sections outline the required information about members, the power to amend this information, duties on new members and existing members to notify required information and changes to it, the power for the company to require information from members, and offences related to failure to comply with these sections or making false statements in connection with these sections.
Exemplar quote from bill: ...e register recording the date on which the information changed and the date on which the change was entered in the register.”; (f) in subsection (7), after “If” insert “, without reasonable excuse,”. ...(5) After section 113 insert— “113A Required information about members: individuals (1) The required information about a member who is an individual is— (a) name; (b) a service address. ... 113I Aggravated false statement offences in connection with sections 113D to 113F (1) A person commits an offence if, in purported compliance with section 113D or 113E, the person makes a statement that the person knows to be misleading, false or deceptive in a material particular....tice under section 113F, to provide their name may be satisfied by providing their title instead; (b) the title may be entered in the register of members instead of their forename and surname (and ref...
- ‼️ Corporate Governance
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: amendment
Proceeds of Crime Act 2002, Anti-terrorism, Crime and Security Act 2001, Terrorism Act 2000
The bill proposes amendments to the Proceeds of Crime Act 2002, the Anti-terrorism, Crime and Security Act 2001, and the Terrorism Act 2000 to make provisions for a civil recovery regime in relation to cryptoassets. It also makes provisions about financial institutions and cryptoassets.
Exemplar quote from bill: ...rthern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998. PART 4 CRYPTOASSETS 173 Cryptoassets: confiscation orders ...Schedule 7 amends the Proceeds of Crime Act 2002 to make provision in connection with cryptoassets and confiscation orders under Parts 2, 3 and 4 of that Act.... 174 Cryptoassets: civil recovery (1) Schedule 8 amends the Proceeds of Crime Act 2002 to make provision for a civil recovery regime in relation to cryptoassets. (2) It also contains related amendment...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- ‼️ National Security
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Sections 185, 186, 187, 188, 189
The bill introduces new definitions and regulations regarding "relevant actions" and "business relationships" in the context of preventing, detecting, or investigating economic crime. It also establishes that a large organization can be held accountable if an associate commits a fraud offense intending to benefit the organization or any person to whom the associate provides services on behalf of the organization. The Secretary of State is given the power to amend Schedule 11 by adding or removing offenses from the list.
Exemplar quote from bill: ...mission, and (b) imposing and maintaining professional and ethical standards for its members, as well as imposing sanctions for non-compliance with those standards. 185 Meaning of “relevant actions” ...In sections 182 and 183, “relevant actions”, of a person, means the actions of— (a) determining, for the purposes of preventing, detecting or investigating economic crime— (i) whether it is appropriate to apply any customer due diligence measures, or any similar measures, in respect of a customer or proposed customer of the person; (ii) the nature or extent of the measures;... (b) carrying out, for such purposes— (i) effective measures for identifying or verifying the identity of, or (ii) any other customer due diligence measures in respect of, a customer or proposed custo...
- ‼️ Economic Impact
  The proposed changes could significantly impact businesses, particularly large organizations, by holding them accountable for the fraudulent actions of their associates. This could lead to increased scrutiny and due diligence measures within organizations to prevent economic crime.
- ‼️ Justice System
  The changes could potentially increase the number of prosecutions for economic crimes, as large organizations could be held accountable for the actions of their associates. The Secretary of State's power to amend the list of offenses could also impact the types of cases brought before the courts.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Law Society: powers to fine in cases relating to economic crime
The Law Society is given the power to impose penalties without a set limit on the amount in cases related to economic crime.
Exemplar quote from bill: ...of the Economic Crime and Corporate Transparency Act 2023 (failure to prevent fraud offences).” Regulatory and investigatory powers 195 Law Society: powers to fine in cases relating to economic crime ...(1) In section 44D of the Solicitors Act 1974 (disciplinary powers of Law Society), after subsection (2) insert— “(2A) In a case where this subsection applies, subsection (2)(b) has effect as if the words after “penalty” (which set a limit on the amount of the penalty a person may be directed to pay) were omitted.... (2B) Subsection (2A) applies where the Society takes action against a person under subsection (2)(b)— (a) for failure to comply with a requirement or rule referred to in subsection (1)(a), where— (i)...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Cryptoassets: confiscation orders
The bill proposes that an appropriate officer may seize any free property if the officer has reasonable grounds for suspecting that it is a cryptoasset-related item. A cryptoasset-related item is defined as an item of property that is, or that contains or gives access to information that is, likely to assist in the seizure of any cryptoasset.
Exemplar quote from bill: ...bsection (3), omit paragraph (b). 3 (1) Section 47C (power to seize property) is amended as follows. (2) In subsection (2), after “not” insert “under subsection (1)”. (3) After subsection (5) insert— ...“(5A) On being satisfied as mentioned in section 47B(1) an appropriate officer may seize any free property if the officer has reasonable grounds for suspecting that it is a cryptoasset-related item. (5B) A “cryptoasset-related item” is an item of property that is, or that contains or gives access to information that is, likely to assist in the seizure under subsection (1) of any cryptoasset.... (5C) The circumstances in which a cryptoasset is “seized” for the purposes of subsection (1) include circumstances in which it is transferred into a crypto wallet controlled by the appropriate office...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Schedule 7 — Cryptoassets: confiscation orders
The bill proposes the insertion of a new provision that gives the court the power to destroy cryptoassets if they are part of the property subject to a confiscation order. This power can only be exercised if it is not reasonably practicable to realise the cryptoassets or if their realisation would be contrary to the public interest. The court must assess the market value of the cryptoassets and can only destroy them to the extent that their market value is less than or equal to the amount remaining to be paid under the confiscation order. If the receiver destroys any cryptoassets, the defendant is treated as having paid an amount equal to the market value of the destroyed cryptoassets towards the satisfaction of the confiscation order.
Exemplar quote from bill: ... follows. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscation orders Part 1 — England and Wales 224 (2) In subsection (2), at the end insert— ...“(e) so far as the property consists of cryptoassets, power to destroy the property.”... (3) In subsection (8)(a), for “or (c)” substitute “, (c) or (e)”. (4) After subsection (9) insert— (9A) The court may confer the power mentioned in subsection (2)(e) only where— (a) it is not reasona...
- ‼️ Justice System
  This change could significantly impact the justice system by introducing a new power for the court to destroy cryptoassets. This could affect how confiscation orders are enforced and could potentially lead to a shift in how cryptoassets are treated in legal proceedings.
- ‼️ Economic Impact
  The destruction of cryptoassets could have economic implications, particularly if the cryptoassets have a significant market value. This could potentially impact the value of certain cryptoassets and could affect the wider crypto market.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Schedule 7 — Cryptoassets: confiscation orders
The bill proposes the insertion of a new section that applies to cryptoassets held by a person in a crypto wallet administered by a UK-connected cryptoasset service provider. If a confiscation order is made against a person holding such cryptoassets and a receiver has not been appointed, a magistrates' court may order the service provider to realise the cryptoassets and pay the proceeds to the designated officer for the court. If the proceeds exceed the amount payable under the confiscation order, the excess must be paid to an appropriate officer identified in the order.
Exemplar quote from bill: ...;”; ““relevant financial institution” means a bank, a building society, an electronic money institution or a payment institution;”. (7) For the heading substitute “Money”. 12 After section 67 insert— ...“67ZA Cryptoassets (1) This section applies to cryptoassets which— (a) are held by a person, and (b) are held in a crypto wallet administered by a UK-connected cryptoasset service provider, but only so far as the cryptoassets are free property.... (2) Subsection (3) applies if— (a) a confiscation order is made against a person holding cryptoassets to which this section applies, and (b) a receiver has not been appointed under section 50 in rela...
- ‼️ Justice System
  This change could significantly impact the justice system by introducing a new mechanism for the realisation of cryptoassets under a confiscation order. This could affect how such orders are enforced and could potentially lead to a shift in how cryptoassets are treated in legal proceedings.
- ‼️ Economic Impact
  The realisation of cryptoassets could have economic implications, particularly if the cryptoassets have a significant market value. This could potentially impact the value of certain cryptoassets and could affect the wider crypto market.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 150A - Cryptoassets etc
The bill introduces a new section defining "cryptoasset", "crypto wallet", and "cryptoasset-related item". It also outlines the circumstances under which a cryptoasset is considered "destroyed". The Secretary of State is given the power to amend these definitions, but must consult the Scottish Ministers before doing so.
Exemplar quote from bill: ... or (c) the power conferred on the sheriff by section 131AA (power to order destruction of cryptoassets).” Interpretation and miscellaneous provision 36 After section 150 insert— “150ACryptoassets etc...“(1) “Cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically. (2) “Crypto wallet” means— (a) software, (b) hardware, (c) a physical item, or (d) any combination of the things mentioned in paragraphs (a) to (c), which is used to store the cryptographic private key that allows cryptoassets to be accessed. (3) “Cryptoasset-related item” has the meaning given in section 127C(5B). (4) The circumstances in which a cryptoasset is taken to be “destroyed” include circumstances where it is— (a) disposed of, (b) transferred, or (c) otherwise dealt with, in such a way as to ensure, or to make it virtually certain, that it will not be the subject of any further transactions or be dealt with again in any other way. (5) The Secretary of State may by regulations amend the definitions of “cryptoasset” and “crypto wallet” in this section. (6) The Secretary of State must consult the Scottish Ministers before making regulations under subsection (5).”... 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscation orders Part 3 — Northern Ireland 237 PART 3 NORTHERN IRELAND Introductory 37 Part 4 of th...
- ‼️ Economic Impact
  The definitions and regulations around cryptoassets could have significant implications for the digital economy and cryptocurrency markets.
- ‼️ Justice System
  The legal definitions and regulations around cryptoassets could impact how crimes involving these assets are prosecuted.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Chapter 3E of the Proceeds of Crime Act 2002
The bill introduces a new provision for the making of a "crypto wallet freezing order", which can be made by a relevant court if there are reasonable grounds for suspecting that some or all of the cryptoassets held in the crypto wallet are recoverable property or are intended for use in unlawful conduct.
Exemplar quote from bill: ...s head office in the United Kingdom, and (b) the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in the United Kingdom. ...303Z37 Making of a crypto wallet freezing order (1) This section applies where an application for a crypto wallet freezing order is made under section 303Z36 in relation to a crypto wallet. (2) The relevant court may make the order if satisfied that there are reasonable grounds for suspecting that some or all of the cryptoassets held in the crypto wallet— (a) are recoverable property, or (b) are intended by any person for use in unlawful conduct.... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002 259 (3) A crypto wal...
- ‼️ Economic Impact
  This change could have significant implications for individuals and entities that hold cryptoassets, potentially subjecting them to increased legal risk and regulatory oversight.
- ‼️ Justice System
  This change could also have significant implications for the justice system, potentially providing law enforcement with new tools to combat economic crime involving cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Chapter 3E of the Proceeds of Crime Act 2002
The bill introduces a new provision for the making of a "forfeiture order", which can be applied for while any cryptoassets are detained under Chapter 3C or while a crypto wallet freezing order is in effect. The application can be made to a magistrates' court or to the sheriff by the Scottish Ministers.
Exemplar quote from bill: ...nce in subsection (1) to staying the proceedings is to be read as a reference to sisting the proceedings. CHAPTER 3E FORFEITURE OF CRYPTOASSETS FOLLOWING DETENTION OR FREEZING ORDER Forfeiture orders ...303Z41 Forfeiture order (1) This section applies— (a) while any cryptoassets are detained under Chapter 3C, or (b) while a crypto wallet freezing order made under section 303Z37 has effect. (2) An application for the forfeiture of some or all of the cryptoassets that are detained or held in the crypto wallet that is subject to the crypto wallet freezing order may be made— (a) to a magistrates’ court by a person within subsection (3), or (b) to the sheriff by the Scottish Ministers.... (3) The following persons are within this subsection— (a) the Commissioners for His Majesty’s Revenue and Customs, (b) a constable, (c) an SFO officer, and (d) an accredited financial investigator wh...
- ‼️ Economic Impact
  This change could have significant implications for individuals and entities that hold cryptoassets, potentially subjecting them to increased legal risk and regulatory oversight.
- ‼️ Justice System
  This change could also have significant implications for the justice system, potentially providing law enforcement with new tools to combat economic crime involving cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 303Z42
The Secretary of State is given the power to amend regulations regarding the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order. The amendment can include provisions about the process for the forfeiture of cryptoassets, the realisation of forfeited cryptoassets, and the application of the proceeds of such realisation. The Secretary of State must consult the Scottish Ministers and the Department of Justice before making these regulations.
Exemplar quote from bill: ... 303Z45(3), the crypto wallet freezing order ceases to have effect immediately after that determination or other disposal. (6) Subsections (4)(b) and (5) are subject to section 303Z46 and Chapter 3F. ...(7) The Secretary of State may by regulations amend this section to make provision about the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order.... (8) Regulations under subsection (7) may in particular make provision about— (a) the process for the forfeiture of cryptoassets; (b) the realisation of forfeited cryptoassets; (c) the application of ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Section 303Z56, 303Z57, 303Z58, 303Z59
The bill introduces new provisions for the conversion of forfeited cryptoassets into money. It outlines the process and conditions under which such conversion can take place, and the subsequent detention and release of the converted assets.
Exemplar quote from bill: ...ction must provide for notice to be given to persons affected by the order. (13) No appeal may be made against an order made under this section. 303Z56 Conversion: existing forfeiture proceedings (1) ...Where— (a) cryptoassets are forfeited under section 303Z41 or 303Z45, and (b) before the cryptoassets are realised or destroyed in accordance with section 303Z48, an order is made under section 303Z54 requiring the cryptoassets to be converted into money, section 303Z62(1) applies in relation to the converted cryptoassets as if they had been detained under section 303Z57 and forfeited under section 303Z60 (and accordingly section 303Z48 ceases to apply).... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002 277 (2) Where— (a) c...
- ‼️ Economic Impact
  The proposed changes could have significant implications for the handling of cryptoassets in economic crime cases, potentially affecting the value of assets seized and the ease of their disposal.
- ‼️ Justice System
  The changes could impact how law enforcement and the courts handle cases involving cryptoassets, potentially streamlining processes and providing clearer guidelines.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Seizure and detention of cryptoassets
The bill introduces provisions for the seizure and detention of cryptoassets suspected to be linked to terrorism. An authorised officer can seize such assets, which can initially be detained for 48 hours. This detention period can be extended by a court order.
Exemplar quote from bill: ...8A of the Proceeds of Crime Act 2002 (evidence overseas). (10) An order under sub-paragraph (1) must provide for notice to be given to persons affected by the order. Seizure of cryptoassets 10Z7AD(1) ...An authorised officer may seize cryptoassets if the authorised officer has reasonable grounds for suspecting that the cryptoassets are terrorist cryptoassets.... (2) The circumstances in which a cryptoasset is “seized” for the purposes of sub-paragraph (1) include circumstances in which it is transferred into a crypto wallet controlled by the authorised offic...
- ‼️ National Security
  This change could potentially enhance national security by providing a mechanism to seize and detain cryptoassets linked to terrorism.
- ‼️ Justice System
  This change could impact the justice system by introducing new powers for authorised officers and courts in relation to cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision for the forfeiture of cryptoassets that are detained or held in a crypto wallet that is subject to a freezing order.
Exemplar quote from bill: ...er” means a police officer of at least the rank of superintendent. (2) Paragraph 10Z7B(6)(b) (administration of crypto wallets) applies in relation to this Part as it applies in relation to Part 4BB. ...Forfeiture 10Z7CA(1) This paragraph applies— (a) while any cryptoassets are detained under Part 4BA, or (b) while a crypto wallet freezing order made under paragraph 10Z7BB has effect.... (2) An application for the forfeiture of some or all of the cryptoassets that are detained or held in the crypto wallet that is subject to the crypto wallet freezing order may be made— (a) to a magis...
- ‼️ Justice System
  This change could significantly affect the legal processes related to the detention and freezing of crypto wallets, introducing a mechanism for the forfeiture of detained or frozen cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🟣🟣🟣🟣 Reshaping
- Type: insertion
Various Acts and Regulations
The bill proposes to insert a new schedule that outlines the criminal liability of bodies for economic crimes. The schedule includes common law offences and statutory offences under various Acts and Regulations.
Exemplar quote from bill: ...edule 9 227 Page 315, line 20, at end insert— “20A An offence under section (Failure to prevent fraud) of this Act (failure to prevent fraud).” After Schedule 9 228 Insert the following new Schedule— ...“SCHEDULE CRIMINAL LIABILITY OF BODIES: ECONOMIC CRIMES Common law offences 1 Cheating the public revenue. 2 Conspiracy to defraud. 3 In Scotland, the following offences at common law— (a) fraud; (b) uttering; (c) embezzlement; (d) theft. Statutory offences 4 An offence under any of the following provisions of the Theft Act 1968— (a) section 1 (theft); (b) section 17 (false accounting); (c) section 19 (false statements by company directors etc); (d) section 20 (suppression etc of documents); (e) section 24A (dishonestly retaining a wrongful credit). 5 An offence under any of the following provisions of the Theft Act (Northern Ireland) 1969— (a) section 1 (theft); (b) section 17 (false accounting); (c) section 18 (false statements by company directors etc); (d) section 19 (suppression etc of documents); (e) section 23A (dishonestly retaining a wrongful credit). 6 An offence under any of the following provisions of the Customs and Excise Management Act 1979— (a) section 68 (offences in relation to exportation of prohibited or restricted goods); (b) section 167 (untrue declarations etc); (c) section 170 (fraudulent evasion of duty). 7 An offence under the Forgery and Counterfeiting Act 1981 (forgery, counterfeiting and kindred offences). 8 An offence under section 72 of the Value Added Tax Act 1994 (fraudulent evasion of VAT). 9 An offence under section 46A of the Criminal Law (Consolidation) (Scotland) Act 1995 (false monetary instruments). 10 An offence under any of the following sections of the Financial Services and Markets Act 2000— (a) section 23 (contravention of prohibition on carrying on regulated activity unless authorised or exempt); (b) section 25 (contravention of restrictions on financial promotion); (c) section 85 (prohibition on dealing etc in transferable securities without approved prospectus); (d) section 398 (misleading the FCA or PRA). 11 An offence under any of the following sections of the Terrorism Act 2000— (a) section 15 (fund-raising); (b) section 16 (use and possession); (c) section 17 (funding arrangements); (d) section 18 (money laundering); (e) section 63 (terrorist finance: jurisdiction). 12 An offence under any of the following sections of the Proceeds of Crime Act 2002— (a) section 327 (concealing etc criminal property); (b) section 328 (arrangements facilitating acquisition etc of criminal property); (c) section 329 (acquisition, use and possession of criminal property); (d) section 330 (failing to disclose knowledge or suspicion of money laundering); (e) section 333A (tipping off: regulated sector). 13 An offence under section 993 of the Companies Act 2006 (fraudulent trading). 14 An offence under any of the following sections of the Fraud Act 2006— (a) section 1 (fraud); (b) section 6 (possession etc of articles for use in frauds); (c) section 7 (making or supplying articles for use in frauds); (d) section 9 (participating in fraudulent business carried on by sole trader); (e) section 11 (obtaining services dishonestly). 15 An offence under any of the following sections of the Bribery Act 2010— (a) section 1 (bribing another person); (b) section 2 (being bribed); (c) section 6 (bribery of foreign public officials). 16 An offence under section 49 of the Criminal Justice and Licensing (Scotland) Act 2010 (possession, making or supplying articles for use in frauds). 17 An offence under any of the following sections of the Financial Services Act 2012— (a) section 89 (misleading statements); (b) section 90 (misleading impressions); (c) section 91 (misleading statements etc in relation to benchmarks). 18 An offence under regulation 86 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. 19 An offence under regulations made under section 49 of the Sanctions and Anti-Money Laundering Act 2018 (money laundering and terrorist financing etc). 20 (1) An offence under an instrument made under section 2(2) of the European Communities Act 1972 for the purpose of implementing, or otherwise in relation to, EU obligations created or arising by or under an EU financial sanctions Regulation. (2) An offence under an Act or under subordinate legislation where the offence was created for the purpose of implementing a UN financial sanctions Resolution. (3) An offence under paragraph 7 of Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (freezing orders). (4) An offence under paragraph 30 or 30A of Schedule 7 to the CounterTerrorism Act 2008 where the offence relates to a requirement of the kind mentioned in paragraph 13 of that Schedule. (5) An offence under paragraph 31 of Schedule 7 to the Counter-Terrorism Act 2008. (6) An offence under regulations made under section 1 of the Sanctions and Anti-Money Laundering Act 2018 (sanctions regulations). (7) In this paragraph— “EU financial sanctions Regulation” and “UN financial sanctions Resolution” have the same meanings as in Part 8 of the Policing and Crime Act 2017 (see section 143 of that Act); “subordinate legislation” has the same meaning as in the Interpretation Act 1978.”...1978.” 87 229 Insert the following new Schedule— “SCHEDULE FAILURE TO PREVENT FRAUD: FRAUD OFFENCES Common law offences 1 Cheating the public revenue. 2 In Scotland, the following offences at common l...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Company names
The bill introduces new regulations around company names, including prohibitions on names used for criminal purposes, names suggesting connections with foreign governments, and names containing computer code. It also provides the registrar with the power to change company names in certain circumstances.
Exemplar quote from bill: ...dentity verification 5 Proposed officers: disqualification 6 Persons with initial significant control: disqualification 7 Persons with initial significant control: identity verification Company names ...8 Names for criminal purposes 9 Names suggesting connection with foreign governments etc 10 Names containing computer code 11 Prohibition on re-registering name following direction 12 Prohibition on using name that another company has been directed to change 13 Directions to change name: period for compliance 14 Requirements to change name: removal of old name from public inspection 15 Objections to company’s registered name 16 Misleading indication of activities 17 Direction to change name used for criminal purposes 18 Direction to change name wrongly registered 19 Registrar’s power to change names containing computer code 20 Registrar’s power to change company’s name for breach of direction 21 Sections 19 and 20: consequential amendments 22 Company names: exceptions based on national security etc... Business names 23 Use of name suggesting connection with foreign governments etc ii Economic Crime and Corporate Transparency Bill 24 Use of name giving misleading indication of activities 25 Use of ...
- ‼️ Economic Impact
  These changes could impact companies that need to change their names to comply with the new regulations, potentially incurring costs.
- ‼️ Justice System
  The new powers granted to the registrar could have implications for the justice system, potentially increasing the number of cases related to company names.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1081A of the Companies Act 2006
The bill proposes the insertion of a new section 1081A into the Companies Act 2006, which outlines the objectives of the registrar in promoting the integrity of registers. These objectives include ensuring proper document delivery, maintaining accurate information in the register, minimizing the risk of false or misleading records, and minimizing unlawful activities by companies and others.
Exemplar quote from bill: ... section 1059A (scheme of Part 35), in subsection (2), at the appropriate place insert— “section 1081A (registrar’s objectives to promote integrity of registers etc),”. (3) After section 1081 insert— ...“1081A Registrar’s objectives to promote integrity of registers etc (1) The registrar must, in performing the registrar’s functions, seek to promote the following objectives. Objective 1 Objective 1 is to ensure that any person who is required to deliver a document to the registrar does so (and that the requirements for proper delivery are complied with). Objective 2 Objective 2 is to ensure that information contained in the register is accurate and that the register contains everything it ought to contain. Objective 3 Objective 3 is to minimise the risk of records kept by the registrar creating a false or misleading impression to members of the public. Objective 4 Objective 4 is to minimise the extent to which companies and others— (a) carry out unlawful activities, or (b) facilitate the carrying out by others of unlawful activities. (2) In Objective 2 the reference to “the register” includes any records kept by the registrar under any enactment.”...“the register” includes any records kept by the registrar under any enactment.” Company formation 2 Statement as to lawful purposes In section 9 of the Companies Act 2006 (registration documents), in ...
- ‼️ Economic Impact
  This change could potentially increase the accuracy and reliability of company registers, which could have positive implications for economic transparency and accountability.
- ‼️ Justice System
  The change could potentially enhance the ability of the justice system to hold companies accountable for unlawful activities.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 53A of the Companies Act 2006
The bill proposes a new provision that prohibits the registration of a company under a name that, in the opinion of the Secretary of State, is intended to facilitate the commission of an offence involving dishonesty or deception.
Exemplar quote from bill: ...n by section 790C (see also section 790J).” Company names 8 Names for criminal purposes (1) The Companies Act 2006 is amended as follows. (2) After section 53 insert— “53A Names for criminal purposes ...A company must not be registered under this Act by a name if, in the opinion of the Secretary of State, the registration of the company by that name is intended to facilitate— (a) the commission of an offence involving dishonesty or deception, or (b) the carrying out of conduct that, if carried out in any part of the United Kingdom, would amount to such an offence....” (3) In section 1047 (registered name of overseas company), in subsection (4), after 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 7 paragraph (a) inser...
- ‼️ Economic Impact
  This change could potentially reduce economic crime by making it harder for companies to use deceptive names to facilitate illegal activities.
- ‼️ Justice System
  This change could potentially increase the workload of the Secretary of State, who will need to assess the intent behind company name registrations.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 56A of the Companies Act 2006
The bill proposes a new provision that prohibits the registration of a company under a name that, in the opinion of the Secretary of State, would be likely to give the false impression that the company is connected with a foreign government or an international organisation.
Exemplar quote from bill: ...9 Names suggesting connection with foreign governments etc (1) The Companies Act 2006 is amended as follows. (2) After section 56 insert— “56A Names suggesting connection with foreign governments etc ...A company must not be registered under this Act by a name that, in the opinion of the Secretary of State, would be likely to give the false impression that the company is connected with— (a) a foreign government or an agency or authority of a foreign government, or (b) an international organisation whose members include two or more countries or territories (or their governments)....” (3) In section 1047 (registered name of overseas company), in subsection (4), after paragraph (b) insert— “(bza) section 56A (names suggesting connection with foreign governments etc);”. 10 Names co...
- ‼️ Economic Impact
  This change could potentially reduce economic crime by making it harder for companies to use deceptive names to falsely imply a connection with foreign governments or international organisations.
- ‼️ Justice System
  This change could potentially increase the workload of the Secretary of State, who will need to assess the potential implications of company name registrations.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 57B of the Companies Act 2006
The bill proposes a new provision that prohibits a company from re-registering under a name that has previously been changed following a direction or order under certain sections of the Companies Act 2006.
Exemplar quote from bill: ...ows. (2) After section 57A (inserted by section 10 of this Act) insert— “Prohibitions where a company has been required to change a name 57B Prohibition on re-registering name following direction (1) ...Where a company’s name has at any time been changed following a direction under section 67, 75, 76, 76A or 76B, or an order under section 73, the company must not subsequently be registered under this Act by the original name or a name that is similar to it.... 5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 8 (2) But subsection (1) does not prevent the registration of the company by any name approved by the Secreta...
- ‼️ Economic Impact
  This change could potentially reduce economic crime by making it harder for companies to revert to a previously changed name that may have been associated with illegal activities.
- ‼️ Justice System
  This change could potentially increase the workload of the registrar of companies, who will need to ensure that companies do not re-register under prohibited names.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 76E of the Companies Act 2006
The bill introduces an exception to the rules governing company registration. If the Secretary of State deems it necessary for national security or for the prevention or detection of serious crime, a company can be registered under a certain name regardless of the other provisions in this Part of the Act.
Exemplar quote from bill: ...to comply with direction).” 22 Company names: exceptions based on national security etc After section 76D of the Companies Act 2006 (inserted by section 20 of this Act) insert— “CHAPTER 4A EXCEPTIONS ...76E Exceptions based on national security etc (1) Nothing in this Part prevents the registration of a company under this Act by a name if the Secretary of State is satisfied that the registration of the company by that name is necessary— (a) in the interests of national security, or (b) for the purposes of preventing or detecting serious crime.... (2) For the purposes of subsection (1)(b)— (a) “crime” means conduct which— (i) constitutes a criminal offence, or (ii) is, or corresponds to, any conduct which, if it all took place in any one part ...
- ‼️ National Security
  This change could potentially impact national security, as it allows for exceptions to company registration rules in the interest of national security.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Article 6 (disqualification for persistent breaches of companies legislation)
The insertion adds a new sub-paragraph (aa) to paragraph (3) of Article 6, which states that a financial penalty can be imposed on a person by the registrar for an offence under section 1132A of the Companies Act 2006 or section 39 of the Economic Crime (Transparency and Enforcement) Act 2022.
Exemplar quote from bill: ...sions of the companies legislation (see paragraph (3ZA))”; (b) in paragraph (2), for “such provisions as are mentioned in paragraph (1)” substitute “relevant provisions of the companies legislation”; ...(c) in paragraph (3), after sub-paragraph (a) (but before the “or” at the end of that sub-paragraph) insert— “(aa) a financial penalty is imposed on the person by the registrar in respect of such an offence by virtue of regulations under— section 1132A of the Companies Act 2006, or section 39 of the Economic Crime (Transparency and Enforcement) Act 2022,”;... (d) after paragraph (3) insert— “(3ZA) In this Article “relevant provisions of the companies legislation” means— (a) any provision of the companies legislation requiring any return, account or other ...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 14 (offences by body corporate)
The amendment to section 14 expands the scope of offences by a body corporate to include contravention of sections 12A, 12B, and 11A. It also clarifies that if the offence occurred with the consent or neglect of any director, manager, secretary or similar officer, that person, as well as the body corporate, is guilty of the offence.
Exemplar quote from bill: ...a person subject to director disqualification sanctions for the purposes of this section (see section 3A of that Act).” (3) In section 13 (criminal penalties), after “section 11” insert “or 11A”. (4) ...In section 14 (offences by body corporate), for subsection (1) substitute— “(1) Where— (a) a body corporate is— (i) guilty of an offence of acting in contravention of a disqualification order or disqualification undertaking or in contravention of section 12A or 12B, or (ii) guilty of an offence under section 11A, and (b) it is proved that the offence occurred with the consent or connivance of, or was attributable to any neglect on the part of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, the person, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly.”... (5) In section 15 (personal liability for company’s debts where person acts while disqualified)— (a) in subsection (1)(a), after “section 11” insert “, 11A”; (b) omit the “or” at the end of subsectio...
- ‼️ Justice System
  This amendment could potentially increase accountability within corporations by holding individuals responsible for offences committed by the body corporate.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 15 (personal liability for company’s debts where person acts while disqualified)
The amendment to section 15 expands the conditions under which a person can be held personally liable for a company's debts while acting while disqualified. It also provides a defense for a person who did not know and could not reasonably have been expected to know that they were subject to director disqualification sanctions.
Exemplar quote from bill: ...te, or any person who was purporting to act in any such capacity, the person, as well as the body corporate, is guilty of the offence and liable to be proceeded against and punished accordingly.” (5) ...In section 15 (personal liability for company’s debts where person acts while disqualified)— (a) in subsection (1)(a), after “section 11” insert “, 11A”; (b) omit the “or” at the end of subsection (1)(a); 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 27 (c) after subsection (1)(b) insert “, or (c) as a person who is involved in the management of the company, they act or are willing to act on instructions given in contravention of section 11A or Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002.”; (d) after subsection (1) insert— “(1A) A person who is subject to director disqualification sanctions (within the meaning of section 11A) and is involved in the management of a company is not personally responsible under subsection (1)(a) for all of the relevant debts of a company if the person proves that they did not know and could not reasonably have been expected to know that they were subject to director disqualification sanctions at the time at which they were so involved.”; (e) in subsection (3)(b), after “(b)” insert “or (c)”.... (6) In section 18 (register of disqualification orders and undertakings), in subsection (2A), after paragraph (c) insert— “(d) persons who are subject to director disqualification sanctions within th...
- ‼️ Justice System
  This amendment could potentially increase accountability within corporations by expanding the conditions under which individuals can be held personally liable for a company's debts.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 18 (register of disqualification orders and undertakings)
The amendment to section 18 expands the register of disqualification orders and undertakings to include persons who are subject to director disqualification sanctions and any licenses issued by virtue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018.
Exemplar quote from bill: ...nably have been expected to know that they were subject to director disqualification sanctions at the time at which they were so involved.”; (e) in subsection (3)(b), after “(b)” insert “or (c)”. (6) ...In section 18 (register of disqualification orders and undertakings), in subsection (2A), after paragraph (c) insert— “(d) persons who are subject to director disqualification sanctions within the meaning of section 11A; (e) any licences issued by virtue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018.”... (7) In section 21 (interaction with Insolvency Act), in subsection (4), after “section 11” insert “, 11A”. 37 Section 36: application to other bodies (1) The Company Directors Disqualification Act 19...
- ‼️ Justice System
  This amendment could potentially increase transparency and accountability by expanding the register of disqualification orders and undertakings.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The insertion into the Companies Act 2006 prohibits the appointment of a person as a director of a company if the person is disqualified under the directors disqualification legislation.
Exemplar quote from bill: ...gulations repeal any of the previous subsections of this section before the subsection is brought into force. Directors 40 Disqualified directors (1) The Companies Act 2006 is amended as follows. (2) ...After section 159 insert— “159A Disqualified person not to be appointed as director (1) A person may not be appointed a director of a company if the person is disqualified under the directors disqualification legislation (see subsection (2)).... (2) In the table— (a) Part 1 defines “disqualified under the directors disqualification legislation” for the purposes of provisions of this Act so far as relating to— (i) a company registered in Engl...
- ‼️ Justice System
  This insertion could potentially increase accountability within corporations by prohibiting the appointment of disqualified persons as directors.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 169A of the Companies Act 2006
The bill proposes a new provision that automatically removes a director from office if they become disqualified under the directors disqualification legislation.
Exemplar quote from bill: ...s shadow director, although the person could not, by virtue of this section, be validly appointed as a director.” (3) After section 169 insert— “169A Removal from office of disqualified directors (1) ...A person who has been appointed as a director of a company ceases to hold office by virtue of that appointment if the person becomes disqualified under the directors disqualification legislation (see section 159A(2)).... Any of the circumstances mentioned in Article 15 of the Company Directors Disqualification (Northern Ireland) Order 2002 (bankruptcy etc) apply to P. Article 15 of the 2002 Order. P is subject to dir...
- ‼️ Justice System
  This change could potentially increase accountability among company directors by ensuring that disqualified individuals cannot continue to hold office.
- ‼️ Economic Impact
  This could impact the stability of companies if directors are suddenly removed from their positions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, Section 113
The amendment to Section 113 of the Companies Act 2006 changes the requirements for what must be entered in the register of members. Now, the required information and the date of registration must be entered for each member. Additionally, when a person ceases to be a member, the date of cessation must be entered in the register.
Exemplar quote from bill: ...s not affect the person becoming a member of the company by virtue of subsection (2).” (3) For the italic heading “General” at the beginning of Chapter 2 of Part 8 substitute “Duty to keep register”. ...(4) In section 113 (register of members)— (a) for subsection (2) substitute— “(2) There must be entered in the register, in respect of each person who is a member— (a) the required information (see sections 113A and 113B), and (b) the date on which the person was registered as a member. (2A) Where a person ceases to be a member there must be entered in the register the date at which the person’s membership ceased.”;... (b) in subsection (3), omit “, with the names and addresses of the members,”; (c) in subsection (5), after “show a single” insert “service”; (d) in subsection (6), omit “, with the names and addresse...
- ‼️ Corporate Governance
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The bill proposes to insert new sections into the Companies Act 2006, titled "Inspection etc of register and index of members" and "Removal of entries from register of members".
Exemplar quote from bill: ...include the same details of a person’s name or title as are entered in the register of members.” 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 39 (8) ...Before section 114 insert— “Inspection etc of register and index of members”. (9) Before section 121 insert— “Removal of entries from register of members”.... (10) In section 123 (single member companies)— (a) in subsection (1), omit “, with the name and address of the sole member,”; (b) in subsection (2), omit “, with the name and address of the sole memb...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 771 of the Companies Act 2006
The bill proposes to insert a new subsection (1A) into Section 771 of the Companies Act 2006, which stipulates that a company may not register a transfer unless it has the necessary information to enter into its register of members in relation to the transferee.
Exemplar quote from bill: ... member,”; (b) in subsection (2), omit “, with the name and address of the sole member”; (c) in subsection (3), omit “, with the name and address of the person who was formerly the sole member”. (11) ...In section 771 (procedure on transfer being lodged), after subsection (1) insert— “(1A) The company may not register the transfer under subsection (1)(a) unless satisfied that it has the information that it is required to enter in its register of members in relation to the transferee.”... 47 Additional ground for rectifying the register of members In section 125 of the Companies Act 2006 (power of court to rectify the register), for subsection (1) substitute— “(1) If a company’s regis...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 125 of the Companies Act 2006
The bill proposes to amend Section 125 of the Companies Act 2006 to allow a person aggrieved, any member of the company, or the company itself to apply to the court for rectification of the register if the register of members does not include required information or includes information that it is not required to include.
Exemplar quote from bill: ...(1)(a) unless satisfied that it has the information that it is required to enter in its register of members in relation to the transferee.” 47 Additional ground for rectifying the register of members ...In section 125 of the Companies Act 2006 (power of court to rectify the register), for subsection (1) substitute— “(1) If a company’s register of members— (a) does not include information that it is required to include, or (b) includes information that it is not required to include, the person aggrieved, or any member of the company, or the company, may apply to the court for rectification of the register.”... 48 Register of members: protecting information (1) The Companies Act 2006 is amended as follows. (2) In section 114 (register to be kept available for inspection), in subsection (1), after paragraph ...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (S.I. 2008/409)
The bill proposes to remove the option for companies to abridge their accounts as per the Companies Act.
Exemplar quote from bill: ...tled to any such exemption unless its balance sheet contains a statement by the directors— (a) identifying the exemption in question, and (b) confirming that the company qualifies for the exemption.” ...57 Removal of option to abridge Companies Act accounts (1) Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 (S.I. 2008/409) (Companies Act individual accounts) is amended as follows. (2) In paragraph 1(3), omit “Subject to paragraph 1A”. (3) Omit paragraph 1A (abridged accounts). (4) In paragraph 1B(2), omit “, otherwise than pursuant to paragraph 1A(2),”. (5) In paragraph 1C, omit— (a) “abridgment or”; (b) “1A or”.... Confirmation statements 58 Confirmation statements (1) The Companies Act 2006 is amended as follows. (2) In section 853A (duty to deliver confirmation statements)— (a) in subsection (1), for paragrap...
- ‼️ Economic Impact
  This change could potentially increase the transparency of companies' financial activities, but may also increase the administrative burden on small companies.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, section 853A
The bill proposes to amend the Companies Act 2006, specifically section 853A, to change the requirements for confirmation statements. Companies will now need to confirm that they have delivered all required information to the registrar at the same time as the confirmation statement. They can assume that the information has been properly delivered unless the registrar notifies them otherwise.
Exemplar quote from bill: ...it paragraph 1A (abridged accounts). (4) In paragraph 1B(2), omit “, otherwise than pursuant to paragraph 1A(2),”. (5) In paragraph 1C, omit— (a) “abridgment or”; (b) “1A or”. Confirmation statements ...58 Confirmation statements (1) The Companies Act 2006 is amended as follows. (2) In section 853A (duty to deliver confirmation statements)— (a) in subsection (1), for paragraph (b) substitute— “(b) a statement (a “confirmation statement”) confirming— (i) that the company has delivered to the registrar, or is delivering to the registrar at the same time as the confirmation statement, all of the information that it is required to deliver in relation to the confirmation period concerned under any duty to notify a relevant event (see section 853B), (ii) that the company is delivering to the registrar at the same time as the confirmation statement any information that it is required to deliver by virtue of a duty imposed by any of sections 853BA to 853H, and (iii) in the case of a company’s first statement under this paragraph, that the company has delivered to the registrar, or is delivering to the registrar at the same time as the confirmation statement, any information that it is required to deliver under section 167I, 279I or 790LD (pre-incorporation changes).”; (b) omit subsection (2); 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 48 (c) for subsections (7) and (8), substitute— “(7) For the purpose of making a confirmation statement a company is entitled to assume that information that has been delivered to the registrar has been properly delivered unless the registrar has notified the company otherwise.”... (3) In section 853K (confirmation statements: power to make further provision by regulations), in subsection (3), for “section 853A(2)” substitute “section 853A(1)(b)”. 59 Duty to confirm lawful purp...
- ‼️ Economic Impact
  This change could potentially increase the transparency of companies' activities, but may also increase the administrative burden on companies.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006, after section 853B
The bill proposes to insert a new section into the Companies Act 2006, requiring companies to confirm that their intended future activities are lawful when they make a confirmation statement.
Exemplar quote from bill: ...tified the company otherwise.” (3) In section 853K (confirmation statements: power to make further provision by regulations), in subsection (3), for “section 853A(2)” substitute “section 853A(1)(b)”. ...59 Duty to confirm lawful purposes After section 853B of the Companies Act 2006 insert— “853BA Duty to confirm lawful purpose Where a company makes a confirmation statement it must at the same time deliver to the registrar a statement that the intended future activities of the company are lawful.”... 60 Duty to notify a change in company’s principal business activities In section 853C of the Companies Act 2006 (duty to notify a change in company’s principal business activities), after subsection ...
- ‼️ Economic Impact
  This change could potentially increase the transparency of companies' activities and ensure that they are operating within the law. However, it may also increase the administrative burden on companies.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, section 853C
The bill proposes to amend the Companies Act 2006, specifically section 853C, to require companies to notify the registrar if their principal business activities have changed by the time of their incorporation.
Exemplar quote from bill: ... to confirm lawful purpose Where a company makes a confirmation statement it must at the same time deliver to the registrar a statement that the intended future activities of the company are lawful.” ...60 Duty to notify a change in company’s principal business activities In section 853C of the Companies Act 2006 (duty to notify a change in company’s principal business activities), after subsection (1) insert— “(1A) This section also applies where— (a) a company makes its first confirmation statement, and (b) by the time of its incorporation, the company’s principal business activities had changed from those specified in the statement under section 9(5)(c).”... 61 Confirmation statements: offences (1) The Companies Act 2006 is amended as follows. (2) In section 853J (power to amend duties to deliver certain information), in subsection (4)(a)— (a) at the end...
- ‼️ Economic Impact
  This change could potentially increase the transparency of companies' activities, but may also increase the administrative burden on companies.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, sections 853J and 853L
The bill proposes to amend the Companies Act 2006, specifically sections 853J and 853L, to change the offences related to confirmation statements. Every officer of a company who is in default will now be liable.
Exemplar quote from bill: ...makes its first confirmation statement, and (b) by the time of its incorporation, the company’s principal business activities had changed from those specified in the statement under section 9(5)(c).” ...61 Confirmation statements: offences (1) The Companies Act 2006 is amended as follows. (2) In section 853J (power to amend duties to deliver certain information), in subsection (4)(a)— (a) at the end of sub-paragraph (i) insert “and”; (b) for sub-paragraphs (ii) to (iv) substitute— “(ii) every officer of the company who is in default;”. (3) In section 853L (failure to deliver confirmation statement)— (a) in subsection (1)— (i) at the end of paragraph (a) insert “and”; (ii) for paragraphs (b) to (d) substitute— “(b) every officer of the company who is in default.”; (b) omit subsection (4).... Identity verification 62 Identity verification of persons with significant control (1) The Companies Act 2006 is amended as follows. 5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill...
- ‼️ Economic Impact
  This change could potentially increase the accountability of company officers, but may also increase the legal risks they face.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Companies Act 2006, section 790J
The bill proposes to amend the Companies Act 2006, specifically section 790J, to extend the power to make exemptions to include sections 790LI to 790LO.
Exemplar quote from bill: ...ion (1)— (i) at the end of paragraph (a) insert “and”; (ii) for paragraphs (b) to (d) substitute— “(b) every officer of the company who is in default.”; (b) omit subsection (4). Identity verification ...62 Identity verification of persons with significant control (1) The Companies Act 2006 is amended as follows. (2) In section 790J (power to make exemptions), in subsection (2)(e), after “790LD” (inserted by Schedule 2 to this Act) insert “and 790LI to 790LO”....ction (2)(e), after “790LD” (inserted by Schedule 2 to this Act) insert “and 790LI to 790LO”. (3) After section 790LH (inserted by Schedule 2 of this Act) insert— “Identity verification obligations fo...
- ‼️ Economic Impact
  This change could potentially increase the flexibility of the Companies Act 2006, but may also increase the complexity of the law.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006, after section 790LH
The bill proposes to insert a new section into the Companies Act 2006, requiring initial identity verification for registrable persons. The registrar must direct the registrable person to deliver a statement confirming that their identity is verified within 14 days, which can be extended by up to 14 days at a time.
Exemplar quote from bill: ...orate Transparency Bill Part 1 — Companies etc 49 (2) In section 790J (power to make exemptions), in subsection (2)(e), after “790LD” (inserted by Schedule 2 to this Act) insert “and 790LI to 790LO”. ...(3) After section 790LH (inserted by Schedule 2 of this Act) insert— “Identity verification obligations for persons with significant control 790LI Initial identity verification: registrable persons (1) This section applies in the following cases. Case 1 is where— (a) a company is incorporated in pursuance of an application for registration containing a statement under section 12A(1)(a) naming a person as someone who will, on the company’s incorporation, become a registrable person (“the registrable person”), (b) the application does not include a statement under section 12B(2) in respect of the registrable person or it appears to the registrar that the statement is false, and (c) the company has not given a notice under section 790LD(1) in respect of the person. Case 2 is where— (a) the registrar is notified under section 790LA that a person has become a registrable person in relation to a company (“the registrable person”), and (b) the notice does not include a statement under section 790LB(1) or it appears to the registrar that the statement is false. (2) The registrar must direct the registrable person to deliver to the registrar, within the period of 14 days beginning with the date of the direction, a statement confirming that the person’s identity is verified (see section 1110A). (3) The registrar may by further direction extend that period by up to 14 days at a time. (4) A direction under this section must be in writing. (5) A direction given to a person under this section lapses if notice is later given under section 790LD(1) in respect of that person. (6) In this section “registrable person” does not include a person mentioned in section 790C(12)(a) to (d).... 790LJ Initial identity verification for registrable persons: transitional cases (1) A person must deliver to the registrar the statement required by this section if the person— (a) is a registrable p...
- ‼️ Economic Impact
  This change could potentially increase the transparency of companies' activities and ensure that they are operating within the law. However, it may also increase the administrative burden on companies.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection 790LL
This change requires a person who is a registrable relevant legal entity in relation to a company to deliver certain statements to the registrar. This applies if the person became a registrable relevant legal entity either on the incorporation of the company or otherwise before certain sections came fully into force.
Exemplar quote from bill: ...means an officer of the entity whose functions correspond to that of a director of a company. 790LL Initial identity verification in respect of registrable relevant legal entities: transitional cases ...(1) A person must deliver to the registrar the statements required by this section if the person— (a) is a registrable relevant legal entity in relation to a company at any time during the appointed day, and (b) either— (i) became a registrable relevant legal entity on the incorporation of the company in pursuance of an application for registration delivered before section 12B(3) and (4) came fully into force, or (ii) became a registrable relevant legal entity, otherwise than on the incorporation of the company, before section 790LB(2) and (3) came fully into force.... (2) The statements are— (a) a statement by the entity that— (i) specifies the name of one of its relevant officers who is an individual and whose identity is verified, and (ii) confirms that the indi...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection 790LM
This change imposes a duty on a registrable person in relation to a company to maintain their verified identity status throughout the relevant period.
Exemplar quote from bill: ... been brought fully into force. 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 52 790LM Registrable persons: duty to maintain verified identity status ...(1) A registrable person in relation to a company must ensure that, throughout the relevant period, they maintain the status of a person whose identity is verified (see section 1110A).... (2) In this section “the relevant period” means the period— (a) beginning with— (i) the incorporation of the company, in a case where the person became a registrable person on its incorporation and t...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection 790LN
This change imposes a duty on a registrable relevant legal entity in relation to a company to ensure that its registered officer is a relevant officer of the entity and is an individual whose identity is verified throughout the relevant period.
Exemplar quote from bill: ...ction “registrable person” does not include a person mentioned in section 790C(12)(a) to (d). 790LN Registrable relevant legal entities: duty to maintain registered officer whose identity is verified ...(1) A registrable relevant legal entity in relation to a company must ensure that, throughout the relevant period, its registered officer— (a) is a relevant officer of the entity, and (b) is an individual whose identity is verified (see section 1110A).... (2) In this section “registered officer”, in relation to a registrable relevant legal entity, means— (a) the person whose name is specified in— (i) a statement delivered to the registrar in respect o...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection 1110A
This change defines when an individual's identity is considered verified for the purposes of this Act.
Exemplar quote from bill: ...document delivered to the registrar under section 1110A(1)(b) or under regulations under section 1110B;”. (4) After section 1110 insert— “Identity verification 1110A Meaning of “identity is verified” ...(1) For the purposes of this Act an individual’s “identity is verified” if— (a) the individual’s identity has been verified by the registrar in accordance with regulations under section 1110B, or (b) a verification statement in respect of the individual has been delivered to the registrar, and the individual has not, since then, ceased to be an individual whose identity is verified by virtue of regulations under subsection (4).... (2) A verification statement is a statement by an authorised corporate service provider confirming that it has verified an individual’s identity in accordance with regulations under section 1110B. (3...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098F of the Economic Crime and Corporate Transparency Bill
The bill proposes a new provision that defines the circumstances under which a person ceases to be an authorised corporate service provider. This includes if the person ceases to be a relevant person as defined by the Money Laundering Regulations, or under other circumstances as provided by the Secretary of State.
Exemplar quote from bill: ...ard scale. (6) In this section “Money Laundering Regulations” and “supervisory authority” have the meanings given by section 1098B(7). 1098F Ceasing to be an authorised corporate service provider (1) ...A person ceases to be an authorised corporate service provider if the person ceases to be a relevant person as defined by regulation 8(1) of the Money Laundering Regulations.... (2) The Secretary of State may by regulations provide for other circumstances in which a person ceases to be an authorised corporate service provider. (3) The provision that can be made in regulation...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098G of the Economic Crime and Corporate Transparency Bill
The bill proposes a new provision that allows the Secretary of State to provide for circumstances in which the registrar may suspend a person’s status as an authorised corporate service provider.
Exemplar quote from bill: ...rning body. Firm Relevant officer 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 60 1098G Suspension of authorisation as a corporate service provider (1) ...The Secretary of State may by regulations provide for circumstances in which the registrar may suspend a person’s status as an authorised corporate service provider.... (2) The provision that can be made under subsection (1) includes provision as to— (a) the procedure for suspending a person’s status, (b) the period of any suspension, and (c) the revocation of a sus...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098H of the Economic Crime and Corporate Transparency Bill
The bill proposes a new provision that allows the Secretary of State to require an authorised corporate service provider to provide information to the registrar, and to require a person who ceases to be an authorised corporate service provider to notify the registrar and provide relevant information.
Exemplar quote from bill: ...ncludes provision conferring a discretion on the registrar. (4) Regulations under this section are subject to affirmative resolution procedure. 1098H Power to impose duties to provide information (1) ...The Secretary of State may by regulations— (a) require an authorised corporate service provider to provide information to the registrar in accordance with the regulations; (b) require a person who ceases to be an authorised corporate service provider by virtue of section 1098F— (i) to notify the registrar; (ii) to provide the registrar with such information relating to the circumstances by virtue of which the person so ceased as may be specified in the regulations.... (2) The provision that may be made by regulations under subsection (1)(a) includes provision requiring information to be provided on request, on the occurrence of an event or at regular intervals. (3...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098I of the Economic Crime and Corporate Transparency Bill
The bill proposes a new provision that allows the Secretary of State to enable a person who is subject to a relevant regulatory regime under the law of a territory outside the United Kingdom to become an authorised corporate service provider, even if the person is not a relevant person as defined by the Money Laundering Regulations.
Exemplar quote from bill: ...ve resolution procedure. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 61 1098I Power to enable authorisation of foreign corporate service providers (1) ...The Secretary of State may by regulations make provision for the purposes of enabling a person who is subject to a relevant regulatory regime under the law of a territory outside the United Kingdom to become an authorised corporate service provider, even if the person is not a relevant person as defined by regulation 8(1) of the Money Laundering Regulations.... (2) In subsection (1) “relevant regulatory regime” means a regulatory regime that, in the opinion of the Secretary of State, has similar objectives to the regulatory regime under the Money Laundering...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1110C of the Economic Crime and Corporate Transparency Bill
The bill proposes a new provision that allows the Secretary of State to provide for certain effects to apply to a person, if it is necessary in the interests of national security or for the purposes of preventing or detecting serious crime.
Exemplar quote from bill: ...ification: exemption on national security grounds),”. (3) After section 1110B (inserted by section 63 of this Act) insert— “1110C Identity verification: exemption on national security grounds etc (1) ...The Secretary of State may, by written notice given to a person, provide for one or more of the effects listed in subsection (2) to apply in relation to the person, if satisfied that to do so is necessary— (a) in the interests of national security, or (b) for the purposes of preventing or detecting serious crime.... (2) The effects for which the notice may provide are that— (a) where a statement of proposed officers names the person as a director, section 12(2A) does not require a statement under that subsection...
- ‼️ National Security
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1082 of the Companies Act 2006
The bill proposes an amendment to Section 1082 of the Companies Act 2006 to include authorised corporate service providers and individuals whose identity is verified in the allocation of unique identifiers.
Exemplar quote from bill: ...ge number of persons in pursuit of a common purpose.” 66 Allocation of unique identifiers (1) The Companies Act 2006 is amended as follows. (2) In section 1082 (allocation of unique identifiers)— (a) ...in subsection (1)— (i) after “in connection with the register” insert “or dealings with the registrar”; (ii) after paragraph (b) (but before the “or” at the end of that paragraph) insert— “(ba) is an authorised corporate service provider; (bb) is an individual whose identity is verified,”;... (b) subsection (2)(c), for “a statement of the person’s name” substitute “any statement by or referring to the person”; (c) in subsection (2), for paragraph (d) substitute— “(d) confer power on the r...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1025 of the Companies Act 2006
The amendment modifies the conditions for administrative restoration of a company. The applicant must now deliver all necessary documents to the registrar to ensure that if the company is restored, the registrar's records will be up to date.
Exemplar quote from bill: ...167G(3)(c); section 790LB(1) to (3); section 790LI(2); section 790LK(2); section 790LO(1) to (3); section 1067A(3) or (4);”. Restoration to the register 68 Requirements for administrative restoration ...In section 1025 of the Companies Act 2006 (requirements for administrative restoration), for subsection (5) substitute— “(5) The third condition is that the applicant has delivered to the registrar such documents relating to the company as are necessary to ensure that if the company is restored to the register the records kept by the registrar relating to the company will be up to date.... (5A) The fourth condition is— (a) that any outstanding penalties under section 453 or corresponding earlier provisions (civil penalty for failure to deliver accounts) in relation to the company have ...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on companies seeking restoration, but it also ensures that the registrar's records are accurate and up-to-date, which could improve the overall transparency and integrity of the corporate sector.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The bill introduces new requirements for the delivery of documents to the registrar. Individuals can only deliver documents on their own behalf if their identity is verified or if they fall within any exemption specified in regulations made by the Secretary of State.
Exemplar quote from bill: ... identity verification etc (1) The Companies Act 2006 is amended as follows. (2) In section 1059A (scheme of Part 35), in subsection (2), for “1068” substitute “1067A”. (3) After section 1067 insert— ...“Who may deliver documents to the registrar 1067A Delivery of documents: identity verification requirements etc (1) An individual may not deliver documents to the registrar on their own behalf unless— (a) the individual’s identity is verified (see section 1110A), or (b) the individual falls within any exemption that may be specified in regulations made by the Secretary of State for the purposes of this paragraph.... (2) An individual may not deliver documents to the registrar on behalf of another person unless— (a) the individual’s identity is verified (see section 1110A), (b) the individual is an authorised cor...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on individuals delivering documents to the registrar, but it also ensures that the identity of the person delivering the documents is verified, which could improve the overall transparency and integrity of the corporate sector.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The bill introduces a new provision that disqualifies certain individuals from delivering documents to the registrar. This applies to individuals who are disqualified under the directors disqualification legislation.
Exemplar quote from bill: ...2)(d) or (5) are subject to affirmative resolution procedure.” 70 Disqualification from delivering documents After section 1067A of the Companies Act 2006 (inserted by section 69 of this Act) insert— ...“1067B Disqualification from delivering documents (1) An individual who is a disqualified person may not deliver documents to the registrar on their own behalf or on behalf of another.... (2) An individual may not deliver a document to the registrar on behalf of a disqualified person unless— (a) the individual is an authorised corporate service provider (see section 1098A), or (b) the...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on companies, but it also ensures that disqualified individuals cannot deliver documents to the registrar, which could improve the overall transparency and integrity of the corporate sector.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1068 of the Companies Act 2006
The amendment modifies the registrar's requirements for the form, authentication, and manner of delivery of documents. The requirements must now be imposed by means of registrar's rules.
Exemplar quote from bill: ...uirements as regards who may deliver a document to the registrar;”. Facilitating electronic delivery 72 Delivery of documents by electronic means (1) The Companies Act 2006 is amended as follows. (2) ...In section 1068 (registrar’s requirements as to form, authentication and manner of delivery)— (a) after subsection (4) insert— “(4A) Any requirements under subsection (4)(b) to (d) must be imposed by means of registrar’s rules.”;... (b) omit subsections (5) to (6A). (3) Omit section 1069 (power to require delivery by electronic means). (4) In section 1072 (requirements for proper delivery), in subsection (1)(b), omit “section 10...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on companies, but it also ensures that the requirements for the delivery of documents are clearly defined by the registrar's rules, which could improve the overall transparency and integrity of the corporate sector.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006
The bill proposes to insert a new section after Section 1092 of the Companies Act 2006, granting the registrar the power to require additional information.
Exemplar quote from bill: ...dditional information (1) The Companies Act 2006 is amended in accordance with subsections (2) to (4). 5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 69 (2) ...After section 1092 insert— “Additional information 1092A Power to require information... (1) The registrar may by notice in writing require a person to provide information to the registrar for the purposes of enabling the registrar to determine— (a) whether a person has complied with any...
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 1094 of the Companies Act 2006
The bill proposes to substitute Section 1094 of the Companies Act 2006 with a new section that provides for the removal of material from the register.
Exemplar quote from bill: ...inistrative removal of material from the register (1) The Companies Act 2006 is amended as follows. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 71 (2) ...For section 1094 substitute— “1094 Removal of material from the register... (1) The registrar may remove from the register anything that appears to the registrar to be— (a) a document, or material derived from a document, accepted under section 1073 (power to accept document...
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1096 of the Companies Act 2006
The bill proposes to amend the conditions under which a court can order the removal of something from the register. The court would now need to be satisfied that the interest of the company or applicant in removing the material outweighs any interest of other persons in the material continuing to appear on the register.
Exemplar quote from bill: ...ification of the register under court order (1) Section 1096 of the Companies Act 2006 (rectification of the register under court order) is amended as follows. (2) For subsection (3) substitute— “(3) ...The court may make an order for the removal from the register of anything the registration of which had legal consequences only if satisfied that the interest of the company, or (if different) the applicant, in removing the material outweighs any interest of other persons in the material continuing to appear on the register....” (3) After subsection (5) insert— “(5A) This section does not apply to any material delivered to the registrar under Part 15.” (4) In subsection (6), omit paragraph (a) and the “or” at the end of tha...
- ‼️ Justice System
  This change could potentially make it more difficult for companies to remove information from the register, as they would need to demonstrate that their interest in doing so outweighs any other interests. This could help to ensure that important information remains publicly available.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1062A of the Companies Act 2006
The bill introduces a new requirement for the registrar to analyze information in their possession for the purpose of preventing or detecting crime.
Exemplar quote from bill: ...information for the purposes of crime prevention or detection After section 1062 of the Companies Act 2006 insert— “1062A Analysis of information for the purposes of crime prevention or detection (1) ...The registrar must carry out such analysis of information within the registrar’s possession as the registrar considers appropriate for the purposes of preventing or detecting crime.... (2) See also section 1110F (which, among other things, allows the registrar to disclose information to other public authorities).” 90 Fees: costs that may be taken into account (1) Section 1063 of th...
- ‼️ Justice System
  This change could potentially enhance the ability of the justice system to detect and prevent crime by leveraging the information held by the registrar.
- ‼️ Privacy and Civil Liberties
  This change could potentially impact privacy and civil liberties, depending on the nature and extent of the information held by the registrar and how it is used for crime prevention and detection.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1110E and 1110F of the Companies Act 2006
The bill introduces new provisions allowing any person to disclose information to the registrar for the purposes of the registrar's functions, and allowing the registrar to disclose information to any person, public authority, or person of a description specified in regulations made by the Secretary of State, for purposes connected with the exercise of their functions.
Exemplar quote from bill: ...place insert— “sections 1110E to 1110G (disclosure of information),”. (3) After section 1110C (inserted by section 84 of this Act) insert— “Disclosure of information 1110E Disclosure to the registrar ...Any person may disclose information to the registrar for the purposes of the exercise of any of the registrar’s functions. The registrar may disclose information— (a) to any person for purposes connected with the exercise of any of the registrar’s functions; (b) to a public authority for purposes connected with the exercise of any of that public authority’s functions; (c) to a person of a description, and for a purpose, specified in regulations made by the Secretary of State for the purposes of this paragraph....erson of a description, and for a purpose, specified in regulations made by the Secretary of State for the purposes of this paragraph. (2) Regulations under subsection (1)(c) are subject to affirmativ...
- ‼️ Privacy and Civil Liberties
  This change could potentially impact privacy and civil liberties, depending on the nature and extent of the information disclosed and how it is used.
- ‼️ Justice System
  This change could potentially enhance the ability of the justice system to carry out its functions by leveraging the information disclosed to and by the registrar.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1048A of the Companies Act 2006
The bill introduces a new provision that allows the Secretary of State to require overseas companies to register a UK address and an appropriate email address with the registrar.
Exemplar quote from bill: ... the registrar.” 97 Registered addresses of an overseas company (1) The Companies Act 2006 is amended as follows. (2) After section 1048 insert— “1048A Registered addresses of an overseas company (1) ...The Secretary of State may by regulations make provision requiring an overseas company that is required to register particulars under section 1046 to deliver to the registrar for registration— (a) a statement specifying an address in the United Kingdom that is an appropriate address for the company; (b) a statement specifying an appropriate email address for the company.... 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 82 (2) The regulations may include provision— (a) allowing an overseas company to change the address or em...
- ‼️ Corporate Governance
  (Variously affected)
- ‼️ International Relations
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1048B of the Companies Act 2006
The bill introduces a new provision that allows the Secretary of State to require identity verification for directors of overseas companies.
Exemplar quote from bill: ... in relation to an overseas company that is required to register particulars under section 1046. 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 83 (2) ...The Secretary of State may by regulations make provision for the purpose of ensuring that each individual who is a director of such a company is an individual whose identity is verified (see section 1110A).... (3) The regulations may include provision— (a) requiring the delivery of statements or other information to the registrar; (b) for statements or other information delivered to the registrar under the...
- ‼️ Corporate Governance
  (Variously affected)
- ‼️ International Relations
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1132A of the Companies Act 2006
The bill proposes to insert a new section 1132A into the Companies Act 2006, which gives the Secretary of State the power to make regulations allowing the registrar to impose financial penalties on a person if they are satisfied beyond reasonable doubt that the person has committed a relevant offence under the Act.
Exemplar quote from bill: ...alties (1) The Companies Act 2006 is amended as follows. (2) In the heading to Part 36 (Offences under the Companies Acts), at the end insert “and financial penalties”. (3) After section 1132 insert— ...“Financial penalties 1132A Power to make provision for financial penalties (1) The Secretary of State may by regulations make provision conferring power on the registrar to impose a financial penalty on a person if satisfied, beyond reasonable doubt, that the person has engaged in conduct amounting to a relevant offence under this Act.... (2) “Relevant offence under this Act” means any offence under this Act other than an offence under a provision contained in— (a) Part 12 (company secretaries); (b) Part 13 (resolutions and meetings);...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1097A of the Companies Act 2006
The bill proposes to amend section 1097A of the Companies Act 2006 to allow the Secretary of State to make regulations authorising or requiring the registrar to change a company's registered office address if they are satisfied that it is not an appropriate address.
Exemplar quote from bill: ...ject to affirmative resolution procedure. (8) In this section “conduct” means an act or omission.” Rectification of addresses and service of documents 102 Registered office: rectification of register ...(1) Section 1097A of the Companies Act 2006 (rectification of register relating to a company’s registered office) is amended as follows. (2) For subsection (1) substitute— “(1) The Secretary of State may by regulations make provision authorising or requiring the registrar to change the address of a company’s registered office if satisfied that it is not an appropriate address within the meaning given by section 86(2).... (1A) The regulations may authorise or require the address to be changed on the registrar’s own motion or on an application by another person.” (3) Omit subsection (2). (4) In subsection (3)— (a) afte...
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1097B of the Companies Act 2006
The bill proposes to insert a new section 1097B into the Companies Act 2006, which allows the Secretary of State to make regulations authorising or requiring the registrar to change a registered service address of a relevant person if they are satisfied that the address does not meet the requirements of section 1141(1) and (2).
Exemplar quote from bill: ...licant to appeal to the court against a refusal of the application.” 103 Rectification of register: service addresses (1) The Companies Act 2006 is amended as follows. (2) After section 1097A insert— ...“1097B Rectification of register: service addresses (1) The Secretary of State may by regulations make provision authorising or requiring the registrar to change a registered service address of a relevant person if satisfied that the address does not meet the requirements of section 1141(1) and (2).... (2) In this section— “registered service address”, in relation to a relevant person, means the address for the time being shown in the register as the person’s current service address; “relevant pers...
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1097C of the Companies Act 2006
The bill proposes a new regulation that allows the Secretary of State to authorise or require the registrar to change the registered address of a relevant person's principal office if it is determined that the address is not their actual principal office. This change can be initiated by the registrar or another person. The company has the right to appeal any decision to change the registered address. If a person's application to change the registered address is denied, they also have the right to appeal. The court will direct the registrar to register the appropriate address as the principal office in the event of an appeal.
Exemplar quote from bill: ...principal office addresses (1) The Companies Act 2006 is amended as follows. (2) After section 1097B (inserted by section 103) insert— “1097C Rectification of register: principal office addresses (1) ...The Secretary of State may by regulations make provision authorising or requiring the registrar to change the address registered as the principal office of a relevant person if satisfied that the address is not in fact their principal office.... (2) In this section— “address registered as the principal office”, in relation to a relevant person, means the address for the time being shown in the register as the address of the person’s current ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 3 and 5 of the Limited Partnerships Act 1907
The bill proposes amendments to the Limited Partnerships Act 1907. It amends section 3 to define a "limited partnership" as a firm registered as a limited partnership under the Act. It also proposes the omission of section 5, which requires the registration of limited partnerships.
Exemplar quote from bill: ... relation to a company (within the meanings given by section 790C);”. PART 2 PARTNERSHIPS CHAPTER 1 LIMITED PARTNERSHIPS ETC. Meaning of “limited partnership” 106 Meaning of “limited partnership” (1) ...The Limited Partnerships Act 1907 is amended in accordance with subsections (2) and (3). (2) In section 3 (interpretation of terms), in subsection (1) (created by section 107 of this Act), at the appropriate place insert— ““limited partnership” means a firm that is registered as a limited partnership under this Act (for the only circumstances in which a firm can cease to be registered as a limited partnership under this Act while remaining a firm see section 26 (voluntary deregistration));”. (3) Omit section 5 (registration of limited partnership required).... 5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 92 (4) In section 1099 of the Companies Act 2006 (the registrar’s index ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 3 (interpretation of terms)
The bill proposes to insert new definitions into Section 3, including "body corporate", "managing officer", "legal entity", and "service address". It also clarifies that "director" and "shadow director" have the same meanings as in the Companies Acts.
Exemplar quote from bill: ...tion 3 of the Limited Partnerships Act 1907)”. Required information about limited partnerships 107 Required information about partners (1) The Limited Partnerships Act 1907 is amended as follows. (2) ...In section 3 (interpretation of terms)— (a) the existing text becomes subsection (1); (b) in that subsection, at the appropriate places insert— ““body corporate” has the same meaning as in the Companies Acts (see section 1173 of the Companies Act 2006);”; ““managing officer”— (a) in relation to a company, means a director or shadow director; (b) in relation to a legal entity the affairs of which are managed by some or all of its members, means one of those members; (c) in relation to any other legal entity, means an officer of the entity whose functions correspond to that of a director of a company;”; ““legal entity” means a body corporate or other entity that (in each case) is a legal person under the law by which it is governed;”; ““service address” has the same meaning as in the Companies Acts (see section 1141(1) and (2) of the Companies Act 2006).”; (c) after that subsection insert— “(2) For the purposes of the definition of “managing officer” in subsection (1), “director” and “shadow director” have the same meanings as in the Companies Acts (see sections 250 and 251 of the Companies Act 2006).”... (3) In section 4 (definition and constitution of limited partnership), in subsection (4), for “body corporate” substitute “legal entity”. (4) In section 8A (application for registration)— (a) in subs...
- ‼️ Economic Impact
  The new definitions could potentially affect how companies and other legal entities are managed and regulated, with potential economic implications.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8A (application for registration)
The bill proposes to insert new provisions into Section 8A, requiring more detailed information about proposed general partners and limited partners in an application for registration.
Exemplar quote from bill: ...ts (see sections 250 and 251 of the Companies Act 2006).” (3) In section 4 (definition and constitution of limited partnership), in subsection (4), for “body corporate” substitute “legal entity”. (4) ...In section 8A (application for registration)— (a) in subsection (1)(c), after “each” insert “proposed”; (b) in subsections (2)(b) and (c), for “name of each” substitute “required information about each proposed”; (c) in subsection (2)(d), after “each” insert “proposed”; (d) in subsections (3)(a) and (b), for “name of each” substitute “required information about each proposed”; (e) after subsection (3) insert— “(3A) For the required information about a proposed general partner or a proposed limited partner see Part 2 of the Schedule.”... 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 93 (5) Schedule 4 inserts a Schedule into the Limited Partnerships Ac...
- ‼️ Economic Impact
  The new requirements could potentially affect the process of registering a limited partnership, with potential economic implications.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 4
The bill proposes to insert a new Schedule into the Limited Partnerships Act 1907, setting out the required information about partners.
Exemplar quote from bill: ...ner or a proposed limited partner see Part 2 of the Schedule.” 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 93 (5) ...Schedule 4 inserts a Schedule into the Limited Partnerships Act 1907 setting out the required information about partners.... 108 Required information about partners: transitional provision (1) This section applies in relation to a limited partnership that was registered under the Limited Partnerships Act 1907 in pursuance ...
- ‼️ Economic Impact
  The new Schedule could potentially affect the information that partners are required to provide, with potential economic implications.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8G of the Limited Partnerships Act 1907
The bill proposes to give the Secretary of State the power to make regulations that authorize or require the registrar to change the registered office address of a limited partnership if it is deemed inappropriate. The change can be initiated by the registrar or upon application by another person.
Exemplar quote from bill: ... it is registered a person may validly serve any document on the limited partnership at the address previously registered. 8G Regulations about change of address of registered office by registrar (1) ...The Secretary of State may by regulations make provision authorising or requiring the registrar to change the address of a limited partnership’s registered office if satisfied that it is not an appropriate address within the meaning given by section 8E(2).... (2) The regulations may authorise or require the address to be changed on the registrar’s own motion or on an application by another person. (3) The regulations— (a) may include provision correspondi...
- ‼️ Political Power
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8H of the Limited Partnerships Act 1907
The bill proposes to require general partners in a limited partnership to maintain an appropriate registered email address at all times. Failure to comply with this requirement would constitute an offence.
Exemplar quote from bill: ...il address within the meaning given by section 8H(2),”. (3) After section 8G (inserted by section 110 of this Act) insert— “Registered email address 8H Duty to maintain a registered email address (1) ...The general partners in a limited partnership must ensure that its registered email address is at all times an appropriate email address.... (2) An email address is an “appropriate email address” if, in the ordinary course of events, emails sent to it by the registrar would be expected to come to the attention of a person acting on behalf...
- ‼️ Political Power
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 100(6) and (7) of the Economic Crime and Corporate Transparency Bill
The bill proposes that if the general partners in a limited partnership fail to comply with subsection (2), the registrar can treat this as a reasonable cause to believe that the limited partnership has been dissolved. This is for the purposes of section 19 of the Limited Partnerships Act 1907, which gives the registrar the power to confirm the dissolution of a limited partnership. If the registrar proposes to use this failure as grounds for exercising this power, the publication of a warning notice is not required.
Exemplar quote from bill: ... has the same meaning as in the Limited Partnerships Act 1907 (see section 15 of that Act); “transitional period” means the period of 6 months beginning when section 107(4) came fully into force. (6) ...Failure by the general partners in a limited partnership to comply with subsection (2) is, in the absence of any evidence to the contrary, to be treated by the registrar as reasonable cause to believe that the limited partnership has been dissolved for the purposes of section 19 of the Limited Partnerships Act 1907 (registrar’s power to confirm dissolution of limited partnership) (inserted by section 138 of this Act).... (7) Where the registrar proposes to rely on a failure by the general partners in the limited partnership to comply with subsection (2) as grounds for exercising the power in section 19 of the Limited...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 115(1) of the Economic Crime and Corporate Transparency Bill
The bill proposes amendments to the Limited Partnerships Act 1907.
Exemplar quote from bill: ...in the United Kingdom” substitute “(within the meaning of section 3 of the Limited Partnerships Act 1907)”. Required information about limited partnerships 107 Required information about partners (1) ...The Limited Partnerships Act 1907 is amended as follows.... (2) In section 3 (interpretation of terms)— (a) the existing text becomes subsection (1); (b) in that subsection, at the appropriate places insert— ““body corporate” has the same meaning as in the Co...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 115(2) of the Economic Crime and Corporate Transparency Bill
The bill proposes that applications for registration must contain a statement that none of the proposed general partners is disqualified under the directors disqualification legislation.
Exemplar quote from bill: ...ons (2) to (4) of that section (publication of warning notice) do not apply. The general partners 115 Restrictions on general partners (1) The Limited Partnerships Act 1907 is amended as follows. (2) ...In section 8A (application for registration)— (a) after subsection (1A) (inserted by section 110 of this Act) insert— “(1B) The application must also contain a statement that none of the proposed general partners is disqualified under the directors disqualification legislation (see subsection (8)).”;... (b) in subsection (8), at the appropriate place insert— ““disqualified under the directors disqualification legislation”— (a) in relation to a statement about a person delivered to the registrar for ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 115(3) of the Economic Crime and Corporate Transparency Bill
The bill proposes that the general partners in a limited partnership must take any necessary steps to ensure that any general partner who is disqualified under the directors disqualification legislation ceases to be a general partner.
Exemplar quote from bill: ... (b) in relation to a statement about a person delivered to the registrar for Northern Ireland, means that the person falls within any of the entries in the first column of Part 2 of that table;” (3) ...After section 8I (inserted by section 113 of this Act) insert— “Duty to remove disqualified general partners 8J Duty to remove disqualified general partners (1) The general partners in a limited partnership must take any steps that are necessary to ensure that any general partner in the limited partnership who is disqualified under the directors disqualification legislation (see subsection (3)) ceases to be a general partner.... (2) Examples of the types of steps that the general partners might need to take include— (a) enforcing any express or implied agreement between the partners; (b) giving any notice, making any applica...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sections 8L, 8M, 8N, 8O, 8P, 8Q
The bill introduces new regulations for general partners in a limited partnership. It defines the term "named contact" and outlines the process for changing a registered officer or named contact. It also mandates that general partners notify the registrar of any changes in their registered officer or named contact, and if a legal entity becomes a corporate managing officer. Failure to comply with these regulations is considered an offence. The Secretary of State is also given the power to change a registered officer's service address if it does not meet certain requirements.
Exemplar quote from bill: ...s registered officer under section 8L(1), or (b) if the general partner has changed its registered officer under section 8L(1), the individual specified in the latest notice under that provision. (5) ...In this section “named contact”, in relation to the corporate managing officer of a general partner, means—... (a) the individual whose name is specified by the general partner for that corporate managing officer in— (i) a statement delivered to the registrar under section 8A(1D)(b), 8R(5)(b) or 8N(3), or (ii...
- ‼️ Economic Impact
  The changes could potentially increase transparency and accountability in economic activities involving limited partnerships.
- ‼️ Justice System
  The introduction of new offences for non-compliance with the regulations could impact the justice system, potentially leading to more prosecutions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8R of the Limited Partnerships Act 1907
The bill proposes a new requirement for general partners in a limited partnership to notify the registrar if a person becomes or ceases to be a general or limited partner in the partnership.
Exemplar quote from bill: ...nerships 119 Notification of information about partners After section 8Q of the Limited Partnerships Act 1907 (inserted by section 116 of this Act) insert— “Notification of information about partners ...8R Duty to notify registrar of change in partners (1) The general partners in a limited partnership must give notice to the registrar if a person— (a) becomes a general partner or limited partner in the limited partnership, or (b) ceases to be a general partner or limited partner in the limited partnership.... (2) A notice under subsection (1)(a) must contain the required information about the general partner or limited partner (see Part 2 of the Schedule). (3) A notice under subsection (1)(a) of a person ...
- ‼️ Economic Impact
  This change could potentially increase transparency in limited partnerships, which could have economic implications by making it easier to track changes in partnership structures.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8S of the Limited Partnerships Act 1907
The bill proposes a new requirement for general partners in a limited partnership to notify the registrar of any changes in the required information about a partner.
Exemplar quote from bill: ...l partner or a limited partner. (12) In this section “permission of a court to act” means permission under a provision mentioned in column 2 of the table in section 159A(2) of the Companies Act 2006. ...8S Duty to notify registrar of changes of information about partners (1) The general partners in a limited partnership must give notice to the registrar of any change in the required information about a partner (see Part 2 of the Schedule).... (2) The general partners in a limited partnership that is not a private fund limited partnership must give notice to the registrar of any change to the sum contributed by any limited partner. (3) The...
- ‼️ Economic Impact
  This change could potentially increase transparency in limited partnerships, which could have economic implications by making it easier to track changes in partnership structures.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8V of the Limited Partnerships Act 1907
The bill proposes a new prohibition on a person acting as a general partner in a limited partnership until notice has been given under section 8R of the Limited Partnerships Act 1907.
Exemplar quote from bill: ... fail to take all reasonable steps to prevent, the contravention. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 111 ...8V Prohibition on acting unless general partner notified (1) This section applies where— (a) a person has become a general partner in a limited partnership otherwise than on its registration, and (b) notice under section 8R of the person having done so has not been given within the period mentioned in subsection (11) of that section. (2) The general partner may not take part in the management of the partnership business until notice is given under section 8R.... (3) If a general partner contravenes subsection (2) an offence is committed by— (a) the general partner, and (b) if the general partner is a legal entity, any of its managing officers who is in defau...
- ‼️ Economic Impact
  This change could potentially increase transparency in limited partnerships, which could have economic implications by making it easier to track changes in partnership structures.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 8W of the Economic Crime and Corporate Transparency Bill
The Secretary of State is given the power to make regulations that allow or require the registrar to change the registered service address or the principal office address of a general partner in a limited partnership, if certain conditions are met.
Exemplar quote from bill: ...s). (10) Nothing in this section shall affect the liability of the general partner for all debts and obligations of the firm. 8W Regulations about change of general partner’s address by registrar (1) ...The Secretary of State may by regulations make provision authorising or requiring the registrar to— (a) change a registered service address of a general partner in a limited partnership if satisfied that the address does not meet the requirements of section 1141(1) and (2) of the Companies Act 2006; (b) change the address registered as the principal office of a general partner in a limited partnership if satisfied that the address is not in fact their principal office....s the principal office of a general partner in a limited partnership if satisfied that the address is not in fact their principal office. (2) In this section— “address registered as the principal offi...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 120 of the Economic Crime and Corporate Transparency Bill
General partners in a limited partnership are required to deliver a statement to the registrar within a transitional period, specifying required information about the partner.
Exemplar quote from bill: ...partnership, and (b) became a partner in the limited partnership before section 119 came fully into force, other than a person who became a partner in the limited partnership on its registration. (2) ...The general partners in the limited partnership must, within the transitional period, deliver a statement to the registrar specifying the required information about the partner (within the meaning of the Schedule to the Limited Partnerships Act 1907 (inserted by Schedule 4 to this Act)).... (3) If a change in the required information about the partner occurs before whichever is earlier of— (a) the end of the transitional period, and (b) the delivery of the statement mentioned in subsect...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 122 of the Economic Crime and Corporate Transparency Bill
General partners in a limited partnership are required to notify the registrar of any changes to the firm name, the address of the principal place of business, the general nature of the business, or the term or character of the limited partnership.
Exemplar quote from bill: ...Omit section 9 (registration of changes in partnerships). (4) After section 10 insert— “Notification of other changes in partnerships 10A Duty to notify registrar of other changes in partnerships (1) ...The general partners in a limited partnership must give notice to the registrar of any change mentioned in subsection (2). (2) The changes are— (a) in the case of any limited partnership, changes to— (i) the firm name, or (ii) the address of the principal place of business of the limited partnership; (b) in the case of a limited partnership that is not a private fund limited partnership, changes to— (i) the general nature of the limited partnership’s business, or (ii) the term or character of the limited partnership.... (3) The notice must specify the date on which the change occurred. (4) A notice under subsection (2)(b)(i) may specify the change to the general nature of the partnership business by reference to one...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 10A, 10B, 10C of the Limited Partnerships Act 1907
The bill introduces a new requirement for general partners in a limited partnership to deliver a confirmation statement to the registrar within 14 days after each review period. Failure to comply with this requirement or with sections 10A or 10B results in an offence committed by each general partner who is in default.
Exemplar quote from bill: ...conomic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 116 of this Act) insert— “Confirmation statements 10D Duty to deliver confirmation statements ...(1) The general partners in a limited partnership must, within the period of 14 days after each review period, deliver to the registrar a statement (a “confirmation statement”) confirming that any information required by subsection (2) is being delivered at the same time as the confirmation statement.... (2) The information that must be delivered at the same time as the confirmation statement is— (a) a notice of any notifiable change in respect of which a notice under section 8N, 8R, 8S or 10A has no...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 10D, 10E, 10F of the Limited Partnerships Act 1907
The bill gives the Secretary of State the power to make further regulations about the matters that must be confirmed in a confirmation statement delivered under section 10D(1). If the general partners fail to comply with section 10D(1), an offence is committed by each general partner who is in default.
Exemplar quote from bill: ...otifiable change” means a change mentioned in section 8N(1), 8R(1), 8S(1) to (3) or 10A(2) that occurred during the review period. 10E Power to amend matters to be confirmed in confirmation statement ...(1) The Secretary of State may by regulations make further provision about the matters that must be confirmed in a confirmation statement delivered under section 10D(1).... (2) The regulations may— (a) amend or repeal the provisions of section 10D, and (b) provide for exceptions from the requirements of that section as it has effect from time to time. (3) Regulations un...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 10G of the Limited Partnerships Act 1907
The bill gives HMRC the power to require the general partners in a limited partnership to prepare accounts in accordance with regulations made by the Secretary of State and deliver those accounts to HMRC, along with an auditor's report and any required supporting evidence.
Exemplar quote from bill: ...r HMRC to obtain accounts After section 10F of the Limited Partnerships Act 1907 (inserted by section 123 of this Act) insert— “Power for HMRC to obtain accounts 10G Power for HMRC to obtain accounts ...(1) HMRC may by notice in writing require the general partners in a limited partnership to— (a) prepare accounts in accordance with regulations made by the Secretary of State for the purposes of this paragraph; (b) deliver those accounts to HMRC, together with— (i) an auditor’s report prepared in accordance with regulations made by the Secretary of State for the purposes of this sub-paragraph; (ii) such supporting evidence as may be required by regulations made by the Secretary of the State for the purposes of this sub-paragraph.... (2) A requirement under this section may specify— (a) the period to which the accounts must relate; (b) the form and manner in which the documents are to be delivered; (c) the period within which the...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 30 of the Limited Partnerships Act 1907
The bill proposes to give the Secretary of State the power to make regulations about the winding up of a limited partnership that corresponds or is similar to any provision of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989.
Exemplar quote from bill: ...Partnerships Chapter 1 — Limited partnerships etc. 123 130 Power to make provision about winding up After section 29 of the Limited Partnerships Act 1907 (inserted by section 129 of this Act) insert— ...“30 Power to make provision about winding up (1) The Secretary of State may by regulations make provision in relation to the winding up of a limited partnership under section 28 or 29 that corresponds or is similar to any provision of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 (including any provision of that Act or Order that relates to the allocation of jurisdiction or distribution of business between courts in any part of the United Kingdom).... (2) Before making regulations under subsection (1) the Secretary of State must— (a) obtain the consent of the Department for the Economy in Northern Ireland, so far as the regulations relate to limit...
- ‼️ Economic Impact
  This change could have significant implications for the process of winding up limited partnerships, potentially affecting the economic stability of such entities.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 31 of the Limited Partnerships Act 1907
The bill proposes to require a general partner of a limited partnership to notify the court if they become aware of certain circumstances while a petition for winding up the partnership is pending.
Exemplar quote from bill: ...the affairs of the partnership and any award of sequestration of the partnership’s estate under the Bankruptcy (Scotland) Act 2016.” (3) After section 30 (inserted by section 130 of this Act) insert— ...“31 Winding up of limited partnerships: concurrent proceedings (1) Where a petition under section 28 in respect of a limited partnership is pending, a general partner of the limited partnership who is or becomes aware of any of the circumstances mentioned in subsection (3) must notify the court to which the petition was presented.... (2) Where an application under section 29 in respect of a limited partnership is pending— 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limit...
- ‼️ Justice System
  This change could affect the legal responsibilities of general partners in limited partnerships, potentially impacting the justice system's handling of such cases.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 32 of the Limited Partnerships Act 1907
The bill proposes to give the Secretary of State or the Scottish Ministers the power to amend the list of circumstances for notification under section 31 by regulations.
Exemplar quote from bill: ...nce (subject to subsection (8)). (10) For the purposes of this section a petition or application is “pending” if it has been presented or made and it has not fallen, been withdrawn or been determined....“32 Power to amend circumstances for notification under section 31 (1) The Secretary of State or the Scottish Ministers may by regulations amend the list in section 31(3).... (2) Before making regulations under subsection (1) the Secretary of State must obtain the consent of the Scottish Ministers. (3) Regulations made by the Secretary of State under subsection (1) are su...
- ‼️ Political Power
  This change could potentially increase the regulatory powers of the Secretary of State and the Scottish Ministers.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 18 of the Limited Partnerships Act 1907
The bill introduces a new duty for general partners in a limited partnership to notify the registrar of the dissolution of the partnership within 14 days of becoming aware of its dissolution.
Exemplar quote from bill: ...f dissolution After section 17 of the Limited Partnerships Act 1907 (power of board of trade to make rules) insert— “Dissolution, revival and deregistration 18 Duty to notify registrar of dissolution ...(1) A person who is a general partner in a limited partnership at a time when it is dissolved must notify the registrar of the dissolution within the period of 14 days beginning with the day on which the person becomes aware of its dissolution.... (2) A person who is a limited partner in a limited partnership at a time when it is dissolved must, if there are no general partners at that time, notify the registrar of the dissolution within the p...
- ‼️ Justice System
  This change could potentially affect the legal responsibilities of general partners in a limited partnership.
- ‼️ Economic Impact
  This change could potentially impact the operations and dissolution processes of limited partnerships.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 19 of the Limited Partnerships Act 1907
The bill introduces a new power for the registrar to publish a dissolution notice in the Gazette if they have reasonable cause to believe that a limited partnership has been dissolved.
Exemplar quote from bill: ...1907 is amended as follows. (2) After section 18 of the Limited Partnerships Act 1907 (inserted by section 137 of this Act) insert— “19 Registrar’s power to confirm dissolution of limited partnership ...(1) If the registrar has reasonable cause to believe that a limited partnership has been dissolved, the registrar may publish a notice in the Gazette (a “dissolution notice”) stating that fact.... (2) Where the registrar proposes to publish a dissolution notice, the registrar must first publish in the Gazette a notice (a “warning notice”)— (a) explaining the registrar’s proposal and its effect...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the dissolution of limited partnerships.
- ‼️ Economic Impact
  This change could potentially impact the operations and dissolution processes of limited partnerships.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 20 of the Limited Partnerships Act 1907
The bill introduces a new provision that allows the registrar to revive a dissolved limited partnership upon application, provided certain conditions are met.
Exemplar quote from bill: ...— Limited partnerships etc. 134 (ii) given the registrar notice under section 8T that the person did not become a general partner on registration of the limited partnership. 20 Administrative revival ...(1) On an application under this section the registrar must revive a limited partnership if the registrar is satisfied that the following conditions are met.... (2) Condition 1 is that the limited partnership was dissolved under section 19(6) (dissolution on publication of notice in Gazette). (3) Condition 2 is that the applicant has delivered to the registr...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the revival of dissolved limited partnerships.
- ‼️ Economic Impact
  This change could potentially impact the operations and dissolution processes of limited partnerships.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 22 of the Economic Crime and Corporate Transparency Bill
The bill introduces a provision for the administrative revival of a limited partnership that has been dissolved. The revived partnership is to be treated as if it had never been dissolved. The court has the power to give directions and make provisions to restore the partnership and all other persons to their original positions.
Exemplar quote from bill: ...s dissolved under section 19(6)), (b) the limited partnership’s registration number, and (c) the date on which the revival of the limited partnership takes effect. 22 Effect of administrative revival ...(1) The general effect of administrative revival is that the limited partnership is to be treated as having continued in existence as if it had not been dissolved under section 19(6).... (2) The court may give such directions and make such provision as seems just for placing the limited partnership and all other persons in the same position (as nearly must be) as if the limited partn...
- ‼️ Economic Impact
  This change could have significant implications for the economic operations of limited partnerships, potentially allowing for the continuation of business activities and financial transactions that would otherwise have been halted by dissolution.
- ‼️ Justice System
  This change could also impact the justice system, as it gives courts the power to make provisions and give directions to restore the status quo ante of a dissolved partnership.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 23 of the Economic Crime and Corporate Transparency Bill
The bill introduces a provision allowing for applications to be made to the court for the revival of a dissolved limited partnership. Such applications can be made by the Secretary of State, a former partner in the partnership, or any other person who appears to the court to have an interest in the matter.
Exemplar quote from bill: ...rections or provision may be made at any time within the period of three years beginning with the date on which the revival of the limited partnership took effect. 23 Application to court for revival ...(1) An application may be made to the court to revive a limited partnership that has been dissolved under section 19(6) (dissolution on publication of notice in Gazette).... (2) An application under this section may be made by— (a) the Secretary of State, (b) a person who was a partner in the limited partnership immediately before it was dissolved, or (c) any other perso...
- ‼️ Economic Impact
  This change could have significant implications for the economic operations of limited partnerships, potentially allowing for the continuation of business activities and financial transactions that would otherwise have been halted by dissolution.
- ‼️ Justice System
  This change could also impact the justice system, as it gives courts the power to make decisions on applications for the revival of dissolved partnerships.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 26 of the Economic Crime and Corporate Transparency Bill
The bill introduces a provision allowing for the voluntary deregistration of a limited partnership. The registrar must deregister the partnership if a statement is delivered to the registrar, authenticated by or on behalf of each partner, confirming that they want the partnership to be deregistered.
Exemplar quote from bill: ...Voluntary deregistration of limited partnership After section 25 of the Limited Partnerships Act 1907 (inserted by section 138 of this Act) insert— “26 Voluntary deregistration of limited partnership ...(1) The registrar must deregister a limited partnership if a statement is delivered to the registrar which is authenticated by or on behalf of each partner confirming that they want the limited partnership to be deregistered.... (2) The registrar deregisters the limited partnership by publishing a notice in the Gazette of the limited partnership’s deregistration (a “deregistration notice”). (3) The deregistration notice must...
- ‼️ Economic Impact
  This change could have significant implications for the economic operations of limited partnerships, potentially allowing for the cessation of business activities and financial transactions through voluntary deregistration.
- ‼️ Justice System
  This change could also impact the justice system, as it gives the registrar the power to deregister partnerships based on authenticated statements from partners.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 33 of the Economic Crime and Corporate Transparency Bill
The bill introduces a provision restricting the delivery of certain documents to the registrar. An individual cannot deliver a document on their own behalf or on behalf of another person unless they are an authorised corporate service provider or an employee of one acting in the course of their employment.
Exemplar quote from bill: ...on 32 of the Limited Partnerships Act 1907 (inserted by section 131 of this Act) insert— “Delivery of documents to the registrar 33 Documents to be delivered by authorised corporate service providers ...(1) An individual may not deliver a document under a provision listed in subsection (4) to the registrar on their own behalf (and, accordingly, any delivery of a document under such a provision must be made on the individual’s behalf in accordance with subsections (2) and (3)).... (2) An individual may not deliver a document under a provision listed in subsection (4) to the registrar on behalf of another person unless— (a) the individual is an authorised corporate service prov...
- ‼️ Economic Impact
  This change could have significant implications for the operations of limited partnerships and other corporate entities, potentially affecting the way they interact with the registrar and handle their documentation.
- ‼️ Justice System
  This change could also impact the justice system, as it introduces new restrictions on who can deliver documents to the registrar.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 34 and 35 of the Limited Partnerships Act 1907
The bill introduces two new offences related to false statements in the Limited Partnerships Act 1907. The first offence is for delivering or making a misleading, false or deceptive document or statement to the registrar without a reasonable excuse. The second offence is for knowingly delivering or making a misleading, false or deceptive document or statement to the registrar. Both offences apply to individuals and legal entities, with managing officers of legal entities also liable if they are in default. Penalties range from fines to imprisonment, depending on the severity of the offence and the jurisdiction.
Exemplar quote from bill: ...2 — Partnerships Chapter 1 — Limited partnerships etc. 139 143 General false statement offences (1) After section 33 of the Limited Partnerships Act 1907 (inserted by section 142 of this Act) insert— ...“34 False statements: basic offence (1) It is an offence for a person, without reasonable excuse, to— (a) deliver or cause to be delivered to the registrar, for the purposes of this Act, a document that is misleading, false or deceptive in a material particular, or (b) make to the registrar, for the purposes of this Act, a statement that is misleading, false or deceptive in a material particular. (2) Where the offence is committed by a legal entity, every managing officer of the entity who is in default also commits the offence. (3) A person guilty of an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale; (c) on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale. (4) A managing officer is “in default” for the purposes of this section if they authorise or permit, participate in, or fail to take all reasonable steps to prevent, the contravention. (5) But a corporate managing officer does not commit an offence as a managing officer in default unless one of its managing officers is in default. (6) Where any such offence is committed by a corporate managing officer the managing officer in question also commits the offence (subject to subsection (5)). 35 False statements: aggravated offence (1) It is an offence for a person knowingly to— (a) deliver or cause to be delivered to the registrar, for the purposes of this Act, a document that is misleading, false or deceptive in a material particular, or (b) make to the registrar, for the purposes of this Act, a statement that is misleading, false or deceptive in a material particular. (2) Where the offence is committed by a legal entity, every managing officer of the entity who is in default also commits the offence. (3) A person guilty of an offence under this section is liable— (a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both); (b) on summary conviction— (i) in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both); (ii) in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both); (iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both). (4) A managing officer is “in default” for the purposes of this section if they authorise or permit, participate in, or fail to take all reasonable steps to prevent, the contravention. (5) But a corporate managing officer does not commit an offence as a managing officer in default unless one of its managing officers is in default. (6) Where any such offence is committed by a corporate managing officer the managing officer in question also commits the offence (subject to subsection (5)).”...e is committed by a corporate managing officer the managing officer in question also commits the offence (subject to subsection (5)).” National security exemption from identity verification 144 Nation...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 150 of the Economic Crime and Corporate Transparency Bill
The Secretary of State is given the power to make regulations regarding qualifying Scottish partnerships. These regulations may require the delivery of information to the registrar, ensure that a partner of a qualifying Scottish partnership has at least one managing officer whose identity is verified, and make provisions similar to those relating to companies or limited partnerships. The regulations may also create summary offences punishable with a fine. The provision also allows for the amendment, repeal, or revocation of any Act.
Exemplar quote from bill: ... Act 1907 is omitted. (2) Schedule 5 contains consequential amendments relating to this Part. CHAPTER 2 MISCELLANEOUS PROVISION ABOUT PARTNERSHIPS 150 Registration of qualifying Scottish partnerships ...(1) The Secretary of State may by regulations— (a) make provision requiring the delivery to the registrar of information in connection with a qualifying Scottish partnership; (b) make provision for the purpose of ensuring that a partner of a qualifying Scottish partnership has at least one managing officer who is an individual whose identity is verified (within the meaning of section 1110A of the Companies Act 2006); (c) make provision in relation to qualifying Scottish partnerships that corresponds or is similar to any provision relating to companies or limited partnerships made by or under, or capable of being made under, any Act. (2) The regulations may create summary offences, punishable with a fine, in connection with any provision made by virtue of subsection (1)(a) or (b). (3) Do not read subsection (2) as impliedly limiting the provision that can be made by virtue of subsection (1)(c). (4) The provision that may be made by virtue of subsection (1)(c) includes provision for the purpose mentioned in subsection (1)(b). (5) The provision which may be made by regulations under subsection (1) by virtue of section 204(1)(a) includes provision amending, repealing or revoking provision made by or under any Act, whenever passed or made.... (6) In this section— “managing officer” has the meaning given by section 3(1) of the Limited Partnerships Act 1907; “qualifying Scottish partnership” means a partnership, other than a limited partner...
- ‼️ Political Power
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Paragraph 8 of Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022
The bill proposes to amend the Economic Crime (Transparency and Enforcement) Act 2022 to require more detailed information about trusts, including the details of each beneficiary, settlor or grantor, and any interested person under the trust.
Exemplar quote from bill: ...) Paragraph 8 of Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022 (required information) is amended as follows. (2) In sub-paragraph (1), for paragraphs (d) to (f) substitute— ...“(d) the specified details of each beneficiary under the trust; (e) the specified details of each settlor or grantor and, in relation to any settlor or grantor that is a legal entity, the specified details of any person who at the time at which the trust is settled— (i) is a registrable beneficial owner in relation to that entity (if it is overseas entity), or (ii) would be a registrable beneficial owner in relation to the entity if that entity were an overseas entity; (f) the specified details of any interested person under the trust and the date on which they became an interested person.”... (3) After sub-paragraph (1) insert— “(1A) In sub-paragraph (1)(d) to (f) “the specified details”— (a) in relation to a person who is an individual, means— (i) name, date of birth and nationality; (ii...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 2 to the Economic Crime (Transparency and Enforcement) Act 2022
The bill proposes to give the Secretary of State the power to amend the Schedule to expand the description of persons who are registrable beneficial owners of an overseas entity in circumstances where the overseas entity is part of a chain of entities that includes a trustee.
Exemplar quote from bill: ...0 Economic Crime and Corporate Transparency Bill Part 3 — Register of overseas entities 149 (5) Before paragraph 25 insert— “Expansion of meaning of “registrable beneficial owner” where trusts in view...“24A (1) The Secretary of State may by regulations amend this Schedule so as to expand the description of persons who are registrable beneficial owners of an overseas entity in circumstances where the overseas entity is part of a chain of entities that includes a trustee.... (2) For these purposes an overseas entity is part of a chain of entities that includes a trustee if there is a legal entity which is a beneficial owner of it by virtue of being a trustee. (3) Regulat...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022
The bill proposes to amend the Economic Crime (Transparency and Enforcement) Act 2022 to allow for the creation of offences in relation to failures to comply with requirements imposed by regulations under this section. The regulations must provide for any such offence to be punishable by a fine.
Exemplar quote from bill: ...rt— “(e) about the information that must be provided to the registrar to enable the registrar to monitor compliance with any requirements imposed by the regulations.” (3) After subsection (2) insert— ...“(2A) Regulations under this section may create offences in relation to failures to comply with requirements imposed by virtue of subsection (2)(ba) or (e). (2B) The regulations must provide for any such offence to be punishable— (a) on summary conviction in England and Wales, by a fine; (b) on summary conviction in Scotland, by a fine not exceeding level 5 on the standard scale; (c) on summary conviction in Northern Ireland, by a fine not exceeding level 5 on the standard scale....” Inspection of the register and protection of information 161 Material unavailable for public inspection: verification information In section 16 of the Economic Crime (Transparency and Enforcement) A...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Land Registration etc (Scotland) Act 2012, Land Registration Act (Northern Ireland) 1970, Economic Crime (Transparency and Enforcement) Act 2022, Companies Act 2006
The bill proposes amendments to the Land Registration etc (Scotland) Act 2012 and the Land Registration Act (Northern Ireland) 1970, specifically in relation to overseas entities. It also allows the Secretary of State to make amendments to the Economic Crime (Transparency and Enforcement) Act 2022 that correspond to any amendments made to the Companies Act 2006.
Exemplar quote from bill: ... of registrar to require information). (3) For the purposes of this paragraph the failure is remedied when the documents are delivered, or the information is provided, to the registrar of companies.” ...(2) In schedule 1A to the Land Registration etc (Scotland) Act 2012 (asp 5) (land transactions: overseas entities), in paragraph 9, for sub-paragraphs (2) and (3) substitute—... “(2) For the purpose of this schedule, an overseas entity that has failed to comply with any of the following duties is not to be treated as being a “registered overseas entity” until it remedies the...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Proceeds of Crime Act 2002
The bill proposes new provisions to the Proceeds of Crime Act 2002, specifically in relation to the sections on concealing, arrangements, and acquisition, use and possession. These new provisions provide exemptions for certain businesses in the regulated sector from committing an offence under these sections if they meet certain conditions.
Exemplar quote from bill: ... 5 — Miscellaneous 160 PART 5 MISCELLANEOUS Money laundering and terrorist financing 176 Money laundering: exiting and paying away exemptions (1) The Proceeds of Crime Act 2002 is amended as follows. ...(2) In section 327 (concealing etc), after subsection (2C) insert—... “(2D) A person (“P”) who does an act mentioned in paragraph (c) or (d) of subsection (1) does not commit an offence under that subsection if— (a) P is carrying on business in the regulated sector tha...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection (6A) and (6B)
The bill proposes the insertion of new conditions (3 and 4) for the making of an information order. These conditions relate to the assistance of an authorised National Crime Agency (NCA) officer in conducting operational or strategic analysis relevant to money laundering. The conditions also specify the circumstances under which the application for the order is made, the respondent's business sector, and the reasonableness of providing the information.
Exemplar quote from bill: .... (4) In subsection (3) for “A further” substitute “An”. (5) In subsection (4) for “a further” substitute “an”. (6) In subsection (5) for “a further” substitute “an”. (7) After subsection (6) insert— ...“(6A) Condition 3 for the making of an information order is met if— (a) the information would assist an authorised NCA officer to conduct— (i) operational analysis of information that is relevant to money laundering or suspected money laundering, or (ii) strategic analysis identifying trends or patterns in the conduct of money laundering, or systemic deficiencies or vulnerabilities which have been, are being or are likely to be, exploited for the purposes of money laundering, for the purposes of the criminal intelligence function of the National Crime Agency, so far as it relates to money laundering, (b) the respondent is a person carrying on a business in the regulated sector, (c) where the application for the order is made to a magistrates’ court, the person making the application has had regard to the code of practice under section 339ZL, (d) where the application for the order is made to the sheriff— (i) the application is made by a procurator fiscal at the request of the Director General of the National Crime Agency or an authorised NCA officer, and (ii) the person making that request has had regard to the code of practice under section 339ZL, and (e) it is reasonable in all the circumstances for the information to be provided. (6B) Condition 4 for the making of an information order is met if— (a) a request has been made by a foreign FIU to the National Crime Agency for the provision of the information required to be given under the order, (b) an authorised NCA officer has reasonable grounds to believe that the request was made only for the purpose of assisting the foreign FIU to conduct one or both of the following— (i) operational analysis of information that is relevant to money laundering or suspected money laundering, or (ii) strategic analysis identifying trends or patterns in the conduct of money laundering, or systematic deficiencies or vulnerabilities which have been, are being or are likely to be, exploited for the purposes of money laundering, and that the information is likely to be of substantial value to the foreign FIU in carrying out such analysis, (c) the provision of the information by the National Crime Agency to the foreign FIU would be for the purposes of the criminal intelligence function of the National Crime Agency, so far as it relates to money laundering, (d) the respondent is a person carrying on a business in the regulated sector, (e) where the application for the order is made to a magistrates’ court, the person making the application has had regard to the code of practice under section 339ZL, (f) where the application for the order is made to the sheriff— (i) the application is made by a procurator fiscal at the request of the Director General of the National Crime Agency or an authorised NCA officer, and (ii) the person making that request has had regard to the code of practice under section 339ZL, and (g) it is reasonable in all the circumstances for the information to be provided.”...ection 339ZL, and (g) it is reasonable in all the circumstances for the information to be provided.” (8) In subsection (7) for “A further” substitute “An”. (9) In subsection (8) for “a further” substi...
- ‼️ Justice System
  (Variously affected)
- ‼️ National Security
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
section 339ZL
The bill proposes the insertion of a new section 339ZL, which mandates the Secretary of State to make a code of practice in connection with the exercise of certain functions by the Director General of the National Crime Agency or an authorised NCA officer. The code of practice pertains to the making of an application for an information order and the making of a request to a procurator fiscal for the application of an information order. The section also outlines the process for issuing the code of practice, its legal implications, and its admissibility in court proceedings.
Exemplar quote from bill: ...n of “relevant person”, in paragraph (a), for “other National Crime Agency officer” to the end substitute “authorised NCA officer,”. (12) After section 339ZK of the Proceeds of Crime Act 2002 insert— ...“339ZL Code of practice about certain information orders (1) The Secretary of State must make a code of practice in connection with the exercise of the following functions by the Director General of the National Crime Agency or an authorised NCA officer— (a) the making of an application to the magistrates’ court for an information order in reliance on Condition 3 or 4 in section 339ZH being met; (b) the making of a request to a procurator fiscal for the procurator fiscal to apply for an information order in reliance on Condition 3 or 4 in section 339ZH being met. (2) Where the Secretary of State proposes to issue a code of practice the Secretary of State must— (a) publish a draft, (b) consider any representations made about the draft, and (c) if the Secretary of State thinks appropriate, modify the draft in the light of any such representations. (3) A requirement in paragraph (a), (b) or (c) of subsection (2) may be satisfied by the carrying out of the action required by the paragraph in question before this section comes into force. (4) The Secretary of State must lay a draft of the code before Parliament. (5) When the Secretary of State has laid a draft of the code before Parliament the Secretary of State may bring it into operation by regulations. (6) The Secretary of State may revise the whole or any part of the code and issue the code as revised; and subsections (2) to (5) apply to a revised code as they apply to the original code. (7) A failure by a person to comply with a provision of the code does not of itself make the person liable to criminal or civil proceedings. (8) The code is admissible in evidence in criminal or civil proceedings and is to be taken into account by a court or tribunal in any case in which it appears to the court or tribunal to be relevant. (9) A code of practice made under this section may be combined with a code of practice under section 22F of the Terrorism Act 2000 (code of practice relating to information orders under section 22B(1A) of that Act). (10) In this section “authorised NCA officer” has the meaning given in section 339ZH(12).”...hat Act). (10) In this section “authorised NCA officer” has the meaning given in section 339ZH(12).” (13) In section 459 of that Act (orders and regulations)— (a) in subsection (4), after paragraph (a...
- ‼️ Justice System
  (Variously affected)
- ‼️ National Security
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection (6A) and (6B)
The bill introduces new conditions for the making of an information order. These conditions relate to the assistance of an authorised National Crime Agency (NCA) officer in conducting operational or strategic analysis relevant to terrorist financing. The conditions also specify that the respondent must be a person carrying on a business in the regulated sector and that the application for the order must have regard to the code of practice under section 22F. The conditions also apply if a request has been made by a foreign Financial Intelligence Unit (FIU) to the NCA for the provision of the information required to be given under the order.
Exemplar quote from bill: ...” (5) In subsection (3) for “A further” substitute “An”. (6) In subsection (4) for “a further” substitute “an”. (7) In subsection (5) for “a further” substitute “an”. (8) After subsection (6) insert— ...“(6A) Condition 3 for the making of an information order is met if— (a) the information would assist an authorised NCA officer to conduct— (i) operational analysis of information that is relevant to terrorist financing or suspected terrorist financing, or (ii) strategic analysis identifying trends or patterns in the conduct of terrorist financing, or systemic deficiencies or vulnerabilities which have been, are being or are likely to be, exploited for the purposes of terrorist financing, for the purposes of the criminal intelligence function of the National Crime Agency so far as it relates to terrorist financing, (b) the respondent is a person carrying on a business in the regulated sector, (c) where the application for the order is made to a magistrates’ court, the person making the application has had regard to the code of practice under section 22F, (d) where the application for the order is made to the sheriff— 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 5 — Miscellaneous 169 (i) the application is made by a procurator fiscal at the request of the Director General of the National Crime Agency or an authorised NCA officer, and (ii) the person making that request has had regard to the code of practice under section 22F, and (e) it is reasonable in all the circumstances for the information to be provided. (6B) Condition 4 for the making of an information order is met if— (a) a request has been made by a foreign FIU to the National Crime Agency for the provision of the information required to be given under the order, (b) an authorised NCA officer has reasonable grounds to believe that the request was made only for the purpose of assisting the foreign FIU to conduct one or both of the following— (i) operational analysis of information that is relevant to terrorist financing or suspected terrorist financing, or (ii) strategic analysis identifying trends or patterns in the conduct of terrorist financing, or systematic deficiencies or vulnerabilities which have been, are being or are likely to be, exploited for the purposes of terrorist financing, and that the information is likely to be of substantial value to the foreign FIU in carrying out such analysis, (c) the provision of the information by the National Crime Agency to the foreign FIU would be for the purposes of the criminal intelligence function of the National Crime Agency, so far as it relates to terrorist financing, (d) the respondent is a person carrying on a business in the regulated sector, (e) where the application for the order is made to a magistrates’ court, the person making the application has had regard to the code of practice under section 22F, (f) where the application for the order is made to the sheriff— (i) the application is made by a procurator fiscal at the request of the Director General of the National Crime Agency or an authorised NCA officer, and (ii) the person making that request has had regard to the code of practice under section 22F, and (g) it is reasonable in all the circumstances for the information to be provided.”... (9) In subsection (7) for “A further” substitute “An”. (10) In subsection (8) for “a further” substitute “an”. (11) In subsection (12), after “this section” insert “in reliance on Condition 1 or 2”. ...
- ‼️ National Security
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 188: large organisations
The Secretary of State is given the power to modify the definition of "large organisation" in section 188(1) and to omit the words "which is a large organisation" in section 188(1). The Secretary of State can also make any modifications that they deem appropriate as a result of these changes.
Exemplar quote from bill: ...es Act 2006 (see section 474 of that Act); (b) in relation to any other relevant body, has a corresponding meaning; “year of the fraud offence” is to be interpreted in accordance with section 188(1). ...(5) The Secretary of State may by regulations modify this section (other than this subsection and subsections (6) and (7)) for the purpose of altering the meaning of “large organisation” in section 188(1). (6) The Secretary of State may (whether or not the power in subsection (5) has been exercised) by regulations— (a) omit the words “which is a large organisation” in section 188(1), and (b) make any modifications of this section (other than this subsection) that the Secretary of State thinks appropriate in consequence of provision made under paragraph (a).... (7) Regulations under subsection (5) or (6) may make consequential amendments of section 193. 191 Offences under section 188 committed by partnerships (1) Proceedings for an offence under section 188...
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Offences under section 188 committed by partnerships
Proceedings for an offence under section 188 that is alleged to have been committed by a partnership must be brought in the name of the partnership, not in the name of any of the partners.
Exemplar quote from bill: ...nsequence of provision made under paragraph (a). (7) Regulations under subsection (5) or (6) may make consequential amendments of section 193. 191 Offences under section 188 committed by partnerships ...(1) Proceedings for an offence under section 188 alleged to have been committed by a partnership must be brought in the name of the partnership (and not in that of any of the partners).... (2) For the purposes of such proceedings— (a) rules of court relating to the service of documents have effect as if the partnership were a body corporate, and (b) the following provisions apply as th...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Administration of Justice Act 1985, paragraph 14B of Schedule 2
The amendment removes the limit on the amount of penalty a person may be directed to pay in cases where the Law Society takes action against a person for failure to comply with a requirement or rule related to the prevention or detection of economic crime.
Exemplar quote from bill: ...e Transparency Bill Part 5 — Miscellaneous 183 (2) In paragraph 14B of Schedule 2 to the Administration of Justice Act 1985 (disciplinary powers of Law Society), after sub-paragraph (2) insert— “(2A) ...In a case where this sub-paragraph applies, sub-paragraph (2)(b) has effect as if the words after “penalty” (which set a limit on the amount of the penalty a person may be directed to pay) were omitted.... (2B) Sub-paragraph (2A) applies where the Society takes action against a person under sub-paragraph (2)(b) for failure to comply with a requirement or rule referred to in sub-paragraph (1) where— (a)...
- ‼️ Justice System
  This amendment could potentially increase the penalties for those who fail to comply with rules or requirements related to the prevention or detection of economic crime, thereby strengthening the enforcement of such rules.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Solicitors (Scotland) Act 1980, Section 53
The amendment introduces economic crime offences as a new ground for disciplinary action against solicitors in Scotland. It also allows the Scottish Solicitors’ Discipline Tribunal to impose fines of any amount in cases relating to economic crime.
Exemplar quote from bill: ...t “(other than a conviction for an economic crime offence)”; (ii) after “or has” insert “(other than in relation to a conviction for an economic crime offence)”; (b) after paragraph (b) insert— “(ba) ...a solicitor has (whether before or after enrolment as a solicitor) been convicted by any court of an economic crime offence..., or”; (c) in paragraph (c), after “offence” insert “(other than a conviction for an economic crime offence)”; (d) after paragraph (c) insert— “(ca) an incorporated practice has been convicted by any ...
- ‼️ Justice System
  This amendment could potentially increase the penalties for solicitors who are convicted of economic crime offences, thereby strengthening the enforcement of laws against such crimes.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Legal Services Act 2007, Section 1
The amendment adds the prevention and detection of economic crime to the regulatory objectives of the Legal Services Act 2007.
Exemplar quote from bill: ...egal services: objective relating to economic crime (1) Section 1 of the Legal Services Act 2007 (regulatory objectives) is amended as follows. (2) In subsection (1), after paragraph (h) insert— “(i) ...promoting the prevention and detection of economic crime....” (3) After subsection (4) insert— 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 5 — Miscellaneous 185 “(5) In subsection (1)(i) “economic crime” has the meaning given by ...
- ‼️ Justice System
  This amendment could potentially strengthen the regulatory framework for the prevention and detection of economic crime.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Legal Services Act 2007, after section 111
The amendment gives the Law Society new powers to require certain persons to provide information or produce documents for the purposes of preventing or detecting economic crime.
Exemplar quote from bill: ...n 111 insert— “PART 5A APPROVED REGULATORS: INFORMATION POWERS The Law Society’s information powers relating to economic crime 111A The Law Society’s information powers relating to economic crime (1) ...The Law Society may, by notice, require a person falling within subsection (3) to— (a) provide information, or information of a description, specified in the notice; (b) produce documents, or documents of a description, specified in the notice.... (2) The Law Society may only exercise the power in subsection (1) in relation to information or documents which the Law Society considers it necessary or expedient to have for the purposes of, or in ...
- ‼️ Justice System
  This amendment could potentially strengthen the Law Society's ability to prevent and detect economic crime by giving it new powers to require information or documents.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Power to make consequential provision
The bill grants the Secretary of State the power to make regulations that are consequential on this Act.
Exemplar quote from bill: ...accordance with the regulations. (7) In this section— “conduct” means an act or omission; “regulations” mean regulations under section 1.” PART 6 GENERAL 203 Power to make consequential provision (1) ...The Secretary of State may by regulations make provision that is consequential on this Act.... (2) Regulations under this section may amend, repeal or revoke provision made by or under primary legislation passed— (a) before this Act, or (b) later in the same session of Parliament as this Act. ...
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Regulations
The bill provides the power to make regulations under any provision of this Act, including consequential, supplementary, incidental, transitional or saving provision, and different provision for different purposes.
Exemplar quote from bill: ...ar for Scotland.” Regulations 148 Limited partnerships: regulations After section 37 of the Limited Partnerships Act 1907 (inserted by section 145 of this Act) insert— “Regulations 38 Regulations (1) ...A power to make regulations under any provision of this Act includes power to make— (a) consequential, supplementary, incidental, transitional or saving provision; (b) different provision for different purposes.... (2) Regulations made by the Secretary of State under this Act are to be made by statutory instrument. (3) Where regulations under this Act are subject to “the affirmative resolution procedure”, the r...
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167G Duty to notify registrar of change in directors
The bill proposes a new requirement for companies to notify the registrar when a person becomes or ceases to be a director, including the date of the change.
Exemplar quote from bill: ...irectors 197 3 (1) Before section 168 (and before the italic heading before that section) insert— “Notification of information about directors 167G Duty to notify registrar of change in directors (1) ...A company must give notice to the registrar if a person— (a) becomes a director of the company, or (b) ceases to be a director of the company. (2) The notice must specify the date on which the person became or ceased to be a director of the company.... (3) A notice under subsection (1)(a) of a person having become a director must contain— (a) a statement of the required information about the new director (see sections 167J and 167K); (b) a statemen...
- ‼️ Corporate Governance
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167H Duty to notify registrar of changes of information
The bill proposes a new requirement for companies to notify the registrar of any changes in the required information about a director, including the date of the change.
Exemplar quote from bill: ...5 40 45 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 1 — Register of directors 198 167H Duty to notify registrar of changes of information (1) ...A company must give notice to the registrar of any change in the required information about a director (see sections 167J and 167K). (2) The notice must specify the date on which the change occurred.... (3) A notice under this section must be given within the period of 14 days beginning with the day on which the change occurs. (4) Where a company gives notice of a change of a director’s service addr...
- ‼️ Corporate Governance
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167J Required information about a director: individuals
The bill proposes a new requirement for companies to provide specific information about a director or proposed director, including name, date of birth, nationality, any relevant former names, a service address, usual residential address, and the part of the UK or other country or state where the individual usually resides.
Exemplar quote from bill: ...d. (5) A notice under this section must be given within the period of 14 days beginning with the day on which the company was incorporated. 167J Required information about a director: individuals (1) ...The required information about a director (or proposed director) who is an individual is— (a) name, date of birth and nationality; (b) any relevant former names; (c) a service address (which may be stated as “The company’s registered office”); (d) usual residential address; (e) the part of the United Kingdom in which the individual is usually resident or, if the individual is usually resident in a country or state outside the United Kingdom, that country or state.... (2) In subsection (1)(b) “relevant former name” means any former name other than— (a) in the case of a peer, or an individual normally known by a British title, the name by which the individual was k...
- ‼️ Corporate Governance
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: deletion
Sections 161A to 167F (register of directors etc)
The bill proposes to remove sections 161A to 167F, which pertain to the register of directors.
Exemplar quote from bill: ...tions by a company), in paragraph 16, omit subparagraph (3A). SCHEDULE 2 Section 51 ABOLITION OF CERTAIN LOCAL REGISTERS PART 1 REGISTER OF DIRECTORS 1 The Companies Act 2006 is amended as follows. 2 ...Omit— (a) sections 161A to 167F (register of directors etc);... (b) the italic heading before section 161A. 5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 1 — Register of directors 197 3 (...
- ‼️ Corporate Governance
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167K
The bill proposes the insertion of a new section that outlines the required information about a director (or proposed director) that is a body corporate or a firm. This includes the corporate or firm name, principal office, service address, registered number (if a UK-registered limited company), and other particulars such as the legal form of the body corporate or firm, the law by which it is governed, and its registration details if applicable.
Exemplar quote from bill: ...an individual; (b) repeal subsection (4). (6) Regulations under this section are subject to affirmative resolution procedure. 167K Required information about a director: corporate directors and firms ...(1) The required information about a director (or proposed director) that is a body corporate, or a firm that is a legal person under the law by which it is governed, is— (a) corporate or firm name; (b) principal office; (c) a service address (which may be stated as “The company’s registered office”); (d) in the case of a limited company that is a UK-registered company, the registered number; (e) in any other case, particulars of— (i) the legal form of the body corporate or firm and the law by which it is governed, and (ii) if applicable, the register in which it is entered (including details of the state) and its registration number in that register.... (2) The Secretary of State may by regulations amend this section so as to change the required information about a director (or proposed director) of a description mentioned in subsection (1). (3) Reg...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 167L
The bill proposes the insertion of a new section that makes it an offence for a company and its officers to fail to comply with sections 167G, 167H, or 167I without a reasonable excuse.
Exemplar quote from bill: ...25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 1 — Register of directors 200 167L Directors: offence of failure to notify of changes ...(1) If a company fails, without reasonable excuse, to comply with section 167G, 167H or 167I, an offence is committed by— (a) the company, and (b) every officer of the company who is in default.... (2) For this purpose a shadow director is treated as an officer of the company. (3) A person guilty of an offence under this section is liable on summary conviction— (a) in England and Wales, to a fi...
- ‼️ Corporate Accountability
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 279G
The bill proposes the insertion of a new section that requires a company to notify the registrar if a person becomes or ceases to be the secretary or one of the joint secretaries of the company.
Exemplar quote from bill: ...(including the italic heading before section 279A). 6 Before section 280 insert— “Notification of information about secretaries 279G Duty to notify registrar of change in secretary or joint secretary ...(1) A company must give notice to the registrar if a person— (a) becomes the secretary or one of the joint secretaries of the company, or (b) ceases to be the secretary or one of the joint secretaries of the company.... 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 2 — Register of secretaries 201 (2) The notice must specify the date on wh...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 279J
The bill proposes the insertion of a new section that outlines the required information about a secretary or joint secretary (or proposed secretary or joint secretary) who is an individual. This includes the individual's name, any relevant former names, and a service address.
Exemplar quote from bill: ...5 40 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 2 — Register of secretaries 202 279J Required information about a secretary etc: individuals ...(1) The required information about a secretary or joint secretary (or proposed secretary or joint secretary) who is an individual is— (a) name; (b) any relevant former names; (c) a service address (which may be stated as “The company’s registered office”).... (2) In subsection (1)(b) “relevant former name” means any former name other than— (a) in the case of a peer, or an individual normally known by a British title, the name by which the individual was k...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 279K
The bill proposes the insertion of a new section that outlines the required information about a secretary or joint secretary (or proposed secretary or joint secretary) that is a body corporate or a firm. This includes the corporate or firm name, principal office, and service address.
Exemplar quote from bill: ...vidual; (b) repeal subsection (4). (6) Regulations under this section are subject to affirmative resolution procedure. 279K Required information about a secretary etc: corporate secretaries and firms ...(1) The required information about a secretary or joint secretary (or proposed secretary or joint secretary) that is a body corporate, or a firm that is a legal person under the law by which it is governed, is— (a) corporate or firm name; (b) principal office; (c) a service address (which may be stated as “The company’s registered office”);... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 2 — Register of secretaries 203 (d) in the case of a limited company th...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LD
The bill introduces a new requirement for companies to notify the registrar if they become aware of any changes in the particulars of a person who was named in the statement under section 12A(1)(a) as a registrable person or a registrable relevant legal entity, but did not become so, or if there were changes in the required particulars of such a person after the application for the company's registration was delivered to the registrar but before the company was incorporated.
Exemplar quote from bill: ...eivable by registrar) affects the duty to give a notice under this section (or the receipt of that notice by the registrar). 790LD Notification of changes occurring before company is incorporated (1) ...A company must give notice to the registrar if it becomes aware that a person named in the statement under section 12A(1)(a) as a person who would, on the company’s incorporation, become a registrable person or a registrable relevant legal entity did not so become.... (2) A company must give notice to the registrar if it becomes aware of any change in the required particulars of a person named in a statement under section 12A(1)(a) that occurred— (a) after the app...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LE
The bill grants the Secretary of State the power to impose further duties on a company to deliver information to the registrar about registrable persons or registrable relevant legal entities in relation to the company.
Exemplar quote from bill: ...h the day on which the company is both aware as mentioned there and has all of the information that it is required to put in the notice. 790LE Power to create further duties to notify information (1) ...The Secretary of State may by regulations impose further duties on a company to deliver information to the registrar about registrable persons, or registrable relevant legal entities, in relation to the company....le 2 — Abolition of certain local registers Part 3 — Register of people with significant control 208 persons, or registrable relevant legal entities, in relation to the company. (2) Regulations under ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LF
The bill introduces a new offence for companies and their officers if they fail, without reasonable excuse, to comply with sections 790LA, 790LC, 790LD, or regulations under section 790LE.
Exemplar quote from bill: ...egal entities, in relation to the company. (2) Regulations under this section are subject to affirmative resolution procedure. 790LF Persons with significant control: offence of failure to notify (1) ...If a company fails, without reasonable excuse, to comply with section 790LA, 790LC or 790LD, or regulations under section 790LE, an offence is committed by— (a) the company, and (b) every officer of the company who is in default.... (2) For this purpose a shadow director is treated as an officer of the company. (3) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LG
The bill introduces a new provision allowing for an application to be made to the court for an order requiring a company to deliver to the registrar the necessary information or statements to rectify the position if the company defaults in complying with sections 790LA, 790LC, 790LD, or regulations under section 790LE.
Exemplar quote from bill: ...he standard scale and, for continued contravention, a daily default fine not exceeding onetenth of level 3 on the standard scale. 790LG Power of court to order company to remedy defaults or delay (1) ...Where a company makes default in complying with section 790LA, 790LC or 790LD, or regulations under section 790LE, an application may be made to the court for an order requiring the company to deliver to the registrar the information (or statements) necessary to rectify the position.... (2) The application may be made by— (a) any person aggrieved by the default, (b) any member of the company, or (c) any person who is a registrable person or a registrable relevant legal entity in rel...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Limited Partnerships Act 1907
The bill proposes to insert a new schedule after section 38 of the Limited Partnerships Act 1907. This new schedule sets out the required information about a partner, a registered officer, and a named contact for the purposes of various sections.
Exemplar quote from bill: ...s Act 1907 (modifications of general law in case of limited partnerships), in subsection (2), omit the words from “, and” to the end. 128 Winding up limited partnerships on grounds of public interest ...After section 38 of the Limited Partnerships Act 1907 (inserted by section 148 of this Act) insert the following as a Schedule to that Act— “SCHEDULE REQUIRED INFORMATION PART 1 INTRODUCTION 1 In this Schedule— (a) Part 2 sets out the required information about a partner (or proposed partner) for the purposes of sections 8A, 8R, 8S and 8T, (b) Part 3 sets out the required information about a registered officer (or proposed registered officer) for the purposes of sections 8A, 8L, 8M and 8R, and (c) Part 4 sets out the required information about a named contact (or proposed named contact) for the purposes of sections 8A, 8L, 8N, 8O and 8R....rt for it to be wound up. (3) Where it appears to the Department for the Economy in Northern Ireland that it is expedient in the public interest for a limited partnership registered in Northern Irelan...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Economic Crime (Transparency and Enforcement) Act 2022, section 16
The bill proposes to amend section 16 of the Economic Crime (Transparency and Enforcement) Act 2022 to include a duty to comply with Schedule 6, which pertains to the delivery of further information about the transitional period.
Exemplar quote from bill: ...” 205 Insert the following new Schedule— “SCHEDULE 5A OVERSEAS ENTITIES: FURTHER INFORMATION FOR TRANSITIONAL CASES 1 The Economic Crime (Transparency and Enforcement) Act 2022 is amended as follows. ...2 In section 16 (verification of registrable beneficial owners and managing officers), in subsection (1), after paragraph (c) insert— “(d) complies with the duty under Schedule 6 (duty to deliver further information about transitional period).”... 3 After section 43 insert— “43A Duty to deliver further information for transitional cases Schedule 6 (duty to deliver further information for transitional cases) imposes further duties on overseas e...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Overseas entities: further information for transitional cases
The bill introduces a new requirement for overseas entities to deliver certain statements and information to the registrar. This includes changes in beneficial ownership, information about trusts and changes in beneficiaries under trusts, and information about changes in trusts in which beneficial owners are trustees. The entity must also confirm that it has complied with its duty to take steps to obtain information, deliver anything required by regulations under section 16 for verification of information, and provide the name and contact details of an individual who can be contacted about the statements and information.
Exemplar quote from bill: ...l Schedule 6 — Overseas entities: further information for transitional cases 216 (a) beginning with 28 February 2022; (b) ending with 31 January 2023. Duty to deliver statements and information 2 (1) ...The overseas entity must deliver to the registrar— (a) any statements or information required by— paragraph 3 (changes in beneficial ownership of overseas entity), paragraph 4 (information about trusts and changes in beneficiaries under trusts), paragraph 5 (information about changes in trusts in which beneficial owners trustees), (b) a statement that the entity has complied with paragraph 8 of this Schedule (duty to take steps to obtain information), (c) anything required by regulations under section 16 (verification of information) to be delivered to the registrar, and (d) the name and contact details of an individual who may be contacted about the statements and information.... (2) If an overseas entity is registered as an overseas entity when this Schedule comes into force it must deliver the statements and information required by this Schedule— (a) at the same time as it ...
- ‼️ Economic Impact
  This change could potentially increase transparency and accountability of overseas entities, which could have economic implications, particularly in relation to economic crime and corporate transparency.
- ‼️ Justice System
  This change could potentially impact the justice system by providing more information for investigations and prosecutions related to economic crime.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Overseas entities: further information for transitional cases
The bill introduces a new provision that makes it an offence for an overseas entity to fail to comply with the duties imposed by paragraphs 2 to 5 of this Schedule. This is the same offence as failing to comply with section 7.
Exemplar quote from bill: ...sly provided 6 A requirement imposed by paragraphs 2 to 5 to provide information may be met (in whole or in part) by confirming information previously provided. Failure to comply with this Schedule 7 ...Section 8 (offence of failure to comply with updating duty) applies in relation to a failure to comply with a duty imposed by paragraphs 2 to 5 of this Schedule as it applies in relation to a failure to comply with section 7.... Obtaining information 8 (1) An overseas entity must comply with this paragraph before complying with the requirements imposed by paragraphs 2 to 5. (2) The entity must take reasonable steps— 5 10 15 ...
- ‼️ Justice System
  This change could potentially impact the justice system by introducing a new offence related to non-compliance with certain duties by overseas entities.
- ‼️ Economic Impact
  This change could potentially have economic implications, particularly in relation to economic crime and corporate transparency.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Overseas entities and beneficial owners
The bill proposes that overseas entities must take reasonable steps to identify any person who was a registrable beneficial owner by virtue of being a trustee at the end of a relevant period. If such a person is identified, the entity must obtain information about the relevant trust, whether anyone became or ceased to be a beneficiary under the relevant trust during the relevant period, and other specified information.
Exemplar quote from bill: ...such person, to obtain— (i) the information mentioned in row 2 of column 2 of the table in paragraph 3(1), and (ii) in the case of anyone mentioned in paragraph 3(2), the information mentioned there. ...(3) The entity must take reasonable steps— (a) to identify any person who, at the end relevant period, was a registrable beneficial owner by virtue of being a trustee, and (b) if it identities any such person, to obtain — (i) the information mentioned in paragraph 4(2)(a) about the relevant trust, (ii) information as to whether anyone became or ceased to be a beneficiary under the relevant trust during the relevant period (a “relevant beneficiary”), and (iii) the information mentioned in row 2 of column 2 of the table in paragraph 4(3) in relation to any relevant beneficiary.... (4) The entity must take reasonable steps— (a) to identify any person who falls within paragraph 5(1)(a)(i) to (iii), and (b) if it identifies any such person, to obtain the information mentioned in ...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Power to exclude descriptions of registrable beneficial owner
The bill proposes that the Secretary of State may provide regulations that exclude certain persons from being treated as registrable beneficial owners of an overseas entity.
Exemplar quote from bill: ...ffences) apply in relation to information notices under this paragraph as they apply in relation to information notices under section 12. Power to exclude descriptions of registrable beneficial owner ...9 (1) The Secretary of State may by regulations provide that, for the purposes of any provision of this Schedule specified in the regulations, a person of a description so specified is not to be treated as a registrable beneficial owner of an overseas entity.... (2) Regulations under sub-paragraph (1) are subject to the negative resolution procedure.” 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscatio...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Seizure of property
The bill proposes to omit certain paragraphs in section 47B, which deals with the conditions for the exercise of seizure powers.
Exemplar quote from bill: ...ion 173 CRYPTOASSETS: CONFISCATION ORDERS PART 1 ENGLAND AND WALES Introductory 1 Part 2 of the Proceeds of Crime Act 2002 (confiscation: England and Wales) is amended as follows. Seizure of property ...2 In section 47B (conditions for exercise of seizure powers)— (a) in subsection (2), omit paragraph (b); (b) in subsection (3), omit paragraph (b).... 3 (1) Section 47C (power to seize property) is amended as follows. (2) In subsection (2), after “not” insert “under subsection (1)”. (3) After subsection (5) insert— “(5A) On being satisfied as menti...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 67AA
The bill proposes a new provision that allows a magistrates’ court to order the destruction of cryptoassets under certain conditions, such as when a confiscation order is made against the person holding the cryptoassets, no receiver has been appointed for the cryptoassets, and it is either not practicable to realise the cryptoassets or their realisation would likely facilitate criminal conduct.
Exemplar quote from bill: ...sert— “67AA Destruction of seized cryptoassets (1) This section applies to cryptoassets which are held by a person and which have been seized by an appropriate officer under a relevant seizure power. ...(2) A magistrates’ court may by order authorise an appropriate officer to destroy the cryptoassets if— (a) a confiscation order is made against the person by whom the cryptoassets are held, (b) a receiver has not been appointed under section 50 in relation to the cryptoassets, and (c) either— (i) it is not reasonably practicable to realise the cryptoassets, or (ii) there are reasonable grounds to believe that the realisation of the cryptoassets would be contrary to the public interest, having regard in particular to how likely it is that the entry of the cryptoassets into general circulation would facilitate criminal conduct by any person.... (3) An order under this section— (a) must set out the court’s assessment of the market value of the cryptoassets to which it relates; (b) may authorise the destruction of cryptoassets only to the ext...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 127C
The bill proposes a new provision that allows an appropriate officer to seize any free property if they suspect it is a cryptoasset-related item, which is defined as an item of property that is likely to assist in the seizure of any cryptoasset.
Exemplar quote from bill: ...ction (3), omit paragraph (b). 21 (1) Section 127C (power to seize property) is amended as follows. (2) In subsection (2), after “not” insert “under subsection (1)”. (3) After subsection (5) insert— “...(5A) On being satisfied as mentioned in section 127B(1) an appropriate officer may seize any free property if the officer has reasonable grounds for suspecting that it is a cryptoasset-related item. (5B) A “cryptoasset-related item” is an item of property that is, or that contains or gives access to information that is, likely to assist in the seizure under subsection (1) of any cryptoasset.... (5C) The circumstances in which a cryptoasset is “seized” for the purposes of subsection (1) include circumstances in which it is transferred into a crypto wallet controlled by the appropriate office...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 195R (release of property)
The bill proposes a new provision for the handling of unclaimed cryptoasset-related items that have been released. If not claimed within a year, the appropriate officer may retain, dispose of, or destroy the item, provided they have taken reasonable steps to notify relevant parties and have the approval of a senior officer. Any proceeds from the disposal of the item are to be paid into the Consolidated Fund.
Exemplar quote from bill: ...given in section 195C(4) (reading references there to the defendant as references to the person by whom the property is held);”. 44 In section 195R (release of property), after subsection (5) insert— ...“(6) If a cryptoasset-related item which has been released is not claimed within the period of a year beginning with the date on which it was released, the appropriate officer may— (a) retain the item and deal with it as they see fit, (b) dispose of the item, or (c) destroy the item. (7) The powers in subsection (6) may be exercised only— (a) where the appropriate officer has taken reasonable steps to notify— (i) the person from whom the item was seized, and (ii) any other persons who the appropriate officer has reasonable grounds to believe have an interest in the item, that the item has been released, and (b) with the approval of a senior officer. (8) “Senior officer” in subsection (7)(b) has the meaning given in section 195G(3). (9) Any proceeds of a disposal of the item are to be paid into the Consolidated Fund.”... Property held by persons subject to confiscation orders: destruction, realisation etc 45 In section 160A (determination of extent of defendant’s interest in property), in subsection (3)(a), after “re...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 199 (powers of enforcement receiver)
The bill proposes to grant enforcement receivers the power to destroy property that consists of cryptoassets.
Exemplar quote from bill: ... follows. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscation orders Part 1 — England and Wales 224 (2) In subsection (2), at the end insert— ...“(e) so far as the property consists of cryptoassets, power to destroy the property.”... (3) In subsection (8)(a), for “or (c)” substitute “, (c) or (e)”. (4) After subsection (9) insert— (9A) The court may confer the power mentioned in subsection (2)(e) only where— (a) it is not reasona...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 215ZA (Cryptoassets)
The bill proposes a new section that applies to cryptoassets held by a person in a crypto wallet administered by a UK-connected cryptoasset service provider, but only if the cryptoassets are free property.
Exemplar quote from bill: ...ancial institution” means a bank, a building society, an electronic money institution or a payment institution;”. (7) For the heading substitute “Money”. 12 After section 67 insert— “67ZA Cryptoassets...“(1) This section applies to cryptoassets which— (a) are held by a person, and (b) are held in a crypto wallet administered by a UK-connected cryptoasset service provider, but only so far as the cryptoassets are free property.”...(2) Subsection (3) applies if— (a) a confiscation order is made against a person holding cryptoassets to which this section applies, and (b) a receiver has not been appointed under section 50 in relat...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Definition of "Cryptoasset service provider", "cryptoasset exchange provider", and "custodian wallet provider"
The bill introduces definitions for "Cryptoasset service provider", "cryptoasset exchange provider", and "custodian wallet provider". These definitions are crucial for the regulation of cryptoassets and related services.
Exemplar quote from bill: ...ad office in the United Kingdom, and (b) the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in the United Kingdom. (3) ...“Cryptoasset service provider” in subsections (1) and (2) includes a cryptoasset exchange provider and a custodian wallet provider; and for this purpose— “cryptoasset exchange provider” means a firm or sole practitioner who by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved— (a) exchanging, or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets; (b) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another; (c) operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets; “custodian wallet provider” means a firm or sole practitioner who by way of business provides services to safeguard, or to safeguard and administer— (a) cryptoassets on behalf of its customers, or (b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets.... (4) In the definition of “cryptoasset exchange provider” in subsection (3), “cryptoasset” includes a right to, or interest in, a cryptoasset. (5) The Secretary of State may by regulations amend the d...
- ‼️ Economic Impact
  The definitions will help in regulating the cryptoasset industry, which could have significant economic implications.
- ‼️ Justice System
  The definitions will provide clarity in legal proceedings involving cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Definition of "Cryptoasset", "Crypto wallet", and "Cryptoasset-related item"
The bill introduces definitions for "Cryptoasset", "Crypto wallet", and "Cryptoasset-related item". These definitions are crucial for the regulation of cryptoassets and related services.
Exemplar quote from bill: ...power conferred on a magistrates’ court by section 67AA (power to order destruction of cryptoassets).” Interpretation and miscellaneous provision 18 After section 84 insert— “84A Cryptoassets etc (1) ...“Cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically. “Crypto wallet” means— (a) software, (b) hardware, (c) a physical item, or (d) any combination of the things mentioned in paragraphs (a) to (c), which is used to store the cryptographic private key that allows cryptoassets to be accessed. “Cryptoasset-related item” has the meaning given in section 195C(5B)....7C(5B). (4) The circumstances in which a cryptoasset is taken to be “destroyed” include circumstances where it is— (a) disposed of, (b) transferred, or (c) otherwise dealt with, 5 10 15 20 25 30 35 40...
- ‼️ Economic Impact
  The definitions will help in regulating the cryptoasset industry, which could have significant economic implications.
- ‼️ Justice System
  The definitions will provide clarity in legal proceedings involving cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 4 of the Proceeds of Crime Act 2002
The bill introduces a new provision that requires enforcement officers to obtain appropriate approval before exercising their powers to search for cryptoasset-related items, unless it is not practicable to do so.
Exemplar quote from bill: ...ryptoassetrelated item. (2) Section 303Z21 does not require a person to submit to an intimate search or strip search (within the meaning of section 164 of the Customs and Excise Management Act 1979). ...303Z23 Prior approval (1) The powers conferred by section 303Z21 may be exercised only with the appropriate approval unless, in the circumstances, it is not practicable to obtain that approval before exercising the power.... (2) The appropriate approval means the approval of a judicial officer or (if that is not practicable in any case) the approval of a senior officer. (3) A judicial officer means— (a) in relation to En...
- ‼️ Justice System
  (Variously affected)
- ‼️ Digital Privacy
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 4 of the Proceeds of Crime Act 2002
The bill introduces a new provision that requires the appointed person to prepare a report on the exercise of powers as soon as possible after the end of each financial year.
Exemplar quote from bill: ...h Administration; and the terms and conditions of the person’s appointment, including any remuneration or expenses to be paid to the person, are to be determined by the person making the appointment. ...303Z24 Report on exercise of powers (1) As soon as possible after the end of each financial year, the appointed person must prepare a report for that year.... (2) “Financial year” means— (a) the period beginning with the day on which this section came into force and ending with the next 31 March (which is the first financial year), and (b) each subsequent ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Digital Privacy
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 4 of the Proceeds of Crime Act 2002
The bill introduces a new provision that extends the requirements to make codes of practice to the powers conferred by section 303Z21.
Exemplar quote from bill: ... (Northern Ireland) 1954 applies for the purposes of subsection (8) in relation to the laying of a copy of a report as it applies in relation to the laying of a statutory document under an enactment. ...303Z25 Codes of practice (1) The requirements to make codes of practice set out in sections 303G, 303H and 303I apply in relation to the powers conferred by section 303Z21 as they apply in relation to the powers conferred by section 303C.... (2) A requirement in section 303G(2), 303H(2) or 303I(2), as applied by subsection (1), to carry out a relevant action may be satisfied by the carrying out of that action before this section comes in...
- ‼️ Justice System
  (Variously affected)
- ‼️ Digital Privacy
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes that applications for orders related to the detention of cryptoassets can be made by various entities, including the Commissioners for His Majesty’s Revenue and Customs, a constable, an SFO officer, or an accredited financial investigator. This is specific to England, Wales, and Northern Ireland. In Scotland, the Scottish Ministers or a procurator fiscal can make such applications.
Exemplar quote from bill: ...under subsection (1). (4) The court or sheriff may make an order for the period of 2 years in subsection (2)(b) to be extended to a period of up to 3 years beginning with the date of the first order. ...(5) An application for an order under subsection (1) or (4) may be made— (a) in relation to England and Wales and Northern Ireland, by— (i) the Commissioners for His Majesty’s Revenue and Customs, (ii) a constable, (iii) an SFO officer, or (iv) an accredited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453, (b) in relation to Scotland, by the Scottish Ministers in connection with their functions under section 303Z41 or by a procurator fiscal.... (6) The court, sheriff or justice may make an order under subsection (1) if satisfied, in relation to the item of property to be further detained, that— (a) there are reasonable grounds for suspectin...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes that enforcement officers must arrange for the safe storage of seized property and cryptoassets throughout the period of their detention.
Exemplar quote from bill: ...ctions in a foreign country, or (d) by a person under section 375A or 408A (evidence overseas). (9) An order under subsection (1) must provide for notice to be given to persons affected by the order. ...303Z33 Safekeeping of cryptoassets and cryptoasset-related items (1) An enforcement officer must arrange for any item of property seized under section 303Z26 to be safely stored throughout the period during which it is detained under this Chapter. (2) An enforcement officer must arrange for any cryptoassets seized under section 303Z29 to be safely stored throughout the period during which they are detained under this Chapter.... 303Z34 Release of cryptoassets and cryptoasset-related items (1) This section applies while any cryptoasset or other item of property is detained under this Chapter. (2) A magistrates’ court or (in S...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes that a magistrates’ court or sheriff may direct the release of detained cryptoassets or other property if they are satisfied that the conditions for detention are no longer met.
Exemplar quote from bill: ...der this Chapter. (2) An enforcement officer must arrange for any cryptoassets seized under section 303Z29 to be safely stored throughout the period during which they are detained under this Chapter. ...303Z34 Release of cryptoassets and cryptoasset-related items (1) This section applies while any cryptoasset or other item of property is detained under this Chapter. (2) A magistrates’ court or (in Scotland) the sheriff may direct the release of the whole or any part of the property if the following condition is met. (3) The condition is that the court or sheriff is satisfied, on an application by the person from whom the property was seized, that the conditions for the detention of the property in this Chapter are no longer met in relation to the property to be released.... (4) A person within subsection (5) may, after notifying the magistrates’ court, sheriff or justice under whose order property is being detained, release the whole or any part of the property if satis...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes definitions for terms related to cryptoassets, such as "cryptoasset exchange provider", which refers to a firm or sole practitioner who provides services related to the exchange of cryptoassets for money or other cryptoassets.
Exemplar quote from bill: ...und if— (i) the item was directed to be released by the sheriff, or (ii) the sheriff was notified under subsection (4) of the release. CHAPTER 3D RECOVERY OF CRYPTOASSETS: FREEZING ORDERS Definitions ...303Z35 Definitions (1) In this Chapter— (a) “cryptoasset exchange provider” means a firm or sole practitioner who by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved— (i) exchanging, or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets, (ii) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or (iii) operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets;... (b) “custodian wallet provider” means a firm or sole practitioner who by way of business provides services to safeguard, or to safeguard and administer— (i) cryptoassets on behalf of its customers, o...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes that an enforcement officer can apply for a crypto wallet freezing order if they suspect that cryptoassets held in a crypto wallet are recoverable property or are intended for use in unlawful conduct.
Exemplar quote from bill: ...he definitions in this section. (5) The Secretary of State must consult the Scottish Ministers and the Department of Justice before making regulations under subsection (4). Freezing of crypto wallets ...303Z36 Application for crypto wallet freezing order (1) This section applies if an enforcement officer has reasonable grounds for suspecting that cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider— (a) are recoverable property, or (b) are intended by any person for use in unlawful conduct.... (2) Where this section applies (but subject to subsection (3)) the enforcement officer may apply to the relevant court for a crypto wallet freezing order in relation to the crypto wallet in which the...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 3E of the Proceeds of Crime Act 2002
The bill introduces a new definition for "UK-connected cryptoasset service provider", which includes cryptoasset service providers that operate in the UK, have terms and conditions that allow for legal disputes to be litigated in UK courts, hold data relating to their services in the UK, or have their registered or head office in the UK and manage their business from the UK.
Exemplar quote from bill: ...ection 303Z20; “relevant court” means— (a) in England and Wales and Northern Ireland, a magistrates’ court, and (b) in Scotland, the sheriff; “senior officer” has the meaning given by section 303Z20; ...“UK-connected cryptoasset service provider” means a cryptoasset service provider which— (a) is acting in the course of business carried on by it in the United Kingdom, (b) has terms and conditions with the persons to whom it provides services which provide for a legal dispute to be litigated in the courts of a part of the United Kingdom, (c) holds, in the United Kingdom, any data relating to the persons to whom it provides services, or (d) meets the condition in subsection (9).... (9) The condition in this subsection is that— (a) the cryptoasset service provider has its registered office, or if it does not have one, its head office in the United Kingdom, and (b) the day-to-day...
- ‼️ Economic Impact
  This change could have significant implications for cryptoasset service providers operating in the UK, potentially subjecting them to increased regulatory oversight and legal obligations.
- ‼️ Digital Privacy
  The requirement for these providers to hold data relating to their services in the UK could have implications for data privacy and security.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 303Z43
Sections 303Z44 and 303Z45 are applicable if an application is made under section 303Z41 in respect of cryptoassets, the court or sheriff is satisfied that some or all of the cryptoassets are recoverable property or are intended by any person for use in unlawful conduct, and there exists property that is associated with the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in paragraph (b).
Exemplar quote from bill: ...nts of this Chapter. (10) The Secretary of State must consult the Scottish Ministers and the Department of Justice before making regulations under subsection (7). 303Z43 Associated and joint property ...(1) Sections 303Z44 and 303Z45 apply if— (a) an application is made under section 303Z41 in respect of cryptoassets, (b) the court or sheriff is satisfied that some or all of the cryptoassets are recoverable property or are intended by any person for use in unlawful conduct, and (c) there exists property that is associated with the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in paragraph (b).... (2) Sections 303Z44 and 303Z45 also apply in England and Wales and Northern Ireland if— (a) an application is made under section 303Z41 in respect of cryptoassets, (b) the court is satisfied that som...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 303Z44
When this section applies and the person who applied for the order under section 303Z41 and the person who holds the associated property or who is the excepted joint owner agree, the magistrates’ court or sheriff may, instead of making an order under section 303Z41(4), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order.
Exemplar quote from bill: ...” means the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in subsection (1)(b) or (2)(b) (as the case may be). 303Z44 Agreements about associated and joint property ...(1) Where— (a) this section applies, and (b) the person who applied for the order under section 303Z41 (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree, the magistrates’ court or sheriff may, instead of making an order under section 303Z41(4), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order.... (2) The amount of the payment is (subject to subsection (3)) to be the amount which the persons referred to in subsection (1)(b) agree represents— (a) in a case where this section applies by virtue o...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Part 5 of the Proceeds of Crime Act 2002
The amendment allows for the transfer of applications made under section 303Z41 to the appropriate court in the absence of an agreement under section 303Z44. The appropriate court may then order the forfeiture of the property in question if it is satisfied that the property is recoverable or intended for use in unlawful conduct. The court may also order the forfeiture of the associated property or the severance of the excepted joint owner's interest.
Exemplar quote from bill: ...orporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002 266 303Z45 Associated and joint property: default of agreement (1) ...Where this section applies and there is no agreement under section 303Z44, the magistrates’ court or sheriff may transfer the application made under section 303Z41 to the appropriate court.... (2) The “appropriate court” is— (a) the High Court, where the application under section 303Z41 was made to a magistrates’ court; (b) the Court of Session, where the application under section 303Z41 w...
- ‼️ Justice System
  This amendment could potentially streamline the process of dealing with property involved in economic crime, allowing for quicker resolution and recovery of assets. However, it could also potentially infringe on property rights if not properly regulated and overseen.
- ‼️ Economic Impact
  The ability to more efficiently seize and forfeit property involved in economic crime could potentially deter such crime and thus have a positive impact on the economy.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill introduces a new provision allowing individuals who claim ownership of detained cryptoassets to apply for their release.
Exemplar quote from bill: ...the reference in subsection (2)(c) to costs incurred in storing or insuring the property is to be read as a reference to costs incurred in storing or insuring the whole of the property. Supplementary ...303Z50 Victims and other owners: detained cryptoassets (1) A person who claims that any cryptoassets detained under this Part belong to the person may apply for some or all of the cryptoassets to be released.... (2) An application under subsection (1) is to be made— (a) in England and Wales or Northern Ireland, to a magistrates’ court; (b) in Scotland, to the sheriff. (3) The application may be made in the c...
- ‼️ Economic Impact
  This change could have significant economic implications for individuals who own cryptoassets that have been detained. It provides a mechanism for these individuals to potentially recover their assets.
- ‼️ Justice System
  This change could also impact the justice system, as it introduces a new legal process for the release of detained cryptoassets. This could potentially increase the workload of courts and other legal institutions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill introduces a new provision for compensation if no order is made under certain sections of the bill in respect of detained cryptoassets or cryptoassets held in a frozen crypto wallet.
Exemplar quote from bill: ... section to a person from whom cryptoassets were seized include a reference to a person by or for whom the crypto wallet was administered immediately before the crypto wallet freezing order was made. ...303Z52 Compensation (1) This section applies if no order is made under section 303Z41, 303Z44 or 303Z45 in respect of cryptoassets detained under this Part or held in a crypto wallet that is subject to a crypto wallet freezing order under section 303Z37.... (2) Where this section applies, the following may make an application to the relevant court for compensation— (a) a person to whom the cryptoassets belong or from whom they were seized, or (b) a pers...
- ‼️ Economic Impact
  This change could have significant economic implications for individuals who own cryptoassets that have been detained or held in a frozen crypto wallet. It provides a mechanism for these individuals to potentially recover their losses.
- ‼️ Justice System
  This change could also impact the justice system, as it introduces a new legal process for the compensation of individuals who have had their cryptoassets detained or held in a frozen crypto wallet. This could potentially increase the workload of courts and other legal institutions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Forfeiture order for converted cryptoassets
The bill introduces a new provision for the forfeiture of converted cryptoassets. This can be applied for by certain individuals or entities, including the Commissioners for His Majesty’s Revenue and Customs, a constable, an SFO officer, and an accredited financial investigator. The court or sheriff can order the forfeiture if they are satisfied that the cryptoassets are recoverable property or are intended for use in unlawful conduct.
Exemplar quote from bill: ...Customs, (iii) a constable, and (iv) a procurator fiscal. Forfeiture 303Z60 Forfeiture order (1) This section applies while any converted cryptoassets are detained under section 303Z57 or 303Z58. (2) ...An application for the forfeiture of some or all of the converted cryptoassets may be made— (a) to a magistrates’ court by a person within subsection (3), or (b) to the sheriff by the Scottish Ministers.... (3) The following persons are within this subsection— (a) the Commissioners for His Majesty’s Revenue and Customs, (b) a constable, (c) an SFO officer, and (d) an accredited financial investigator wh...
- ‼️ Economic Impact
  This change could potentially have a significant impact on the cryptoasset market, as it introduces a new mechanism for the forfeiture of these assets. This could deter unlawful conduct involving cryptoassets, but could also potentially impact legitimate users of these assets.
- ‼️ Justice System
  This change introduces a new legal mechanism for dealing with cryptoassets, which could have implications for how these assets are treated in the justice system.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Appeal against decision under section 303Z60
The bill introduces a new provision for appealing against a decision made under section 303Z60, which relates to the forfeiture of converted cryptoassets. This appeal can be made to various courts, depending on the location and the court that made the original decision.
Exemplar quote from bill: ...any power conferred by this Chapter) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded. 303Z61 Appeal against decision under section 303Z60 (1) ...Any party to proceedings for an order for the forfeiture of converted cryptoassets under section 303Z60 who is aggrieved by an order under that section or by the decision of the court not to make such an order may appeal— (a) from an order or decision of a magistrates’ court in England and Wales, to the Crown Court; (b) from an order or decision of the sheriff, to the Sheriff Appeal Court; (c) from an order or decision of a magistrates’ court in Northern Ireland, to a county court.... (2) An appeal under subsection (1) must be made before the end of the period of 30 days starting with the day on which the court makes the order or decision. (3) The court hearing the appeal may make...
- ‼️ Justice System
  This change introduces a new legal mechanism for appealing decisions related to the forfeiture of cryptoassets. This could have implications for how these cases are handled in the justice system.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Application of forfeited converted cryptoassets
The bill introduces a new provision for the application of forfeited converted cryptoassets. These assets, and any accrued interest on them, must be used to cover any reasonable expenses incurred by an enforcement officer in connection with the safe storage, conversion, and detention of the cryptoassets. Any remaining assets must be paid into the Consolidated Fund or the Scottish Consolidated Fund, depending on the court that ordered the forfeiture.
Exemplar quote from bill: ...lds an appeal against an order forfeiting the converted cryptoassets, it may order the release of some or all of the converted cryptoassets. 303Z62 Application of forfeited converted cryptoassets (1) ...Converted cryptoassets detained under section 303Z57 and forfeited under section 303Z60, and any accrued interest on them, must be applied as follows— (a) first, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the safe storage of the cryptoassets mentioned in section 303Z57(1) during the period the cryptoassets were detained under Chapter 3C; (b) second, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the conversion of those cryptoassets under section 303Z54(6); (c) third, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the detention of the converted cryptoassets under this Chapter; (d) fourth, they must be paid— (i) if forfeited by a magistrates’ court in England and Wales or Northern Ireland, into the Consolidated Fund, and (ii) if forfeited by the sheriff, into the Scottish Consolidated Fund....) if forfeited by a magistrates’ court in England and Wales or Northern Ireland, into the Consolidated Fund, and (ii) if forfeited by the sheriff, into the Scottish Consolidated Fund. (2) Converted cr...
- ‼️ Economic Impact
  This change could potentially have a significant impact on the cryptoasset market, as it introduces a new mechanism for the application of forfeited assets. This could deter unlawful conduct involving cryptoassets, but could also potentially impact legitimate users of these assets.
- ‼️ Justice System
  This change introduces a new legal mechanism for dealing with forfeited cryptoassets, which could have implications for how these assets are treated in the justice system.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Compensation for seized cryptoassets or applied crypto wallet freezing order
The bill proposes a new framework for compensating for seized cryptoassets or applied crypto wallet freezing orders. The compensation is to be paid by different entities depending on who seized the assets or applied the order, including constables, SFO officers, National Crime Agency officers, and accredited financial investigators.
Exemplar quote from bill: ...zed, or the relevant crypto wallet freezing order was applied for, by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for His Majesty’s Revenue and Customs. (6) ...If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by a constable, the compensation is to be paid as follows—... (a) in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met; (b) in the case of a constable of t...
- ‼️ Economic Impact
  This change could have significant economic implications for individuals and entities involved in cryptoasset transactions, as it establishes a clear framework for compensation in cases of seizure or freezing orders.
- ‼️ Justice System
  This change could impact the justice system by providing a clear framework for compensation in cases of seizure or freezing orders, potentially reducing disputes and litigation in these areas.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Powers for prosecutors to appear in proceedings
The bill proposes new powers for the Director of Public Prosecutions or the Director of Public Prosecutions for Northern Ireland to appear for a constable or an accredited financial investigator in proceedings under this Chapter. The Director of Public Prosecutions may also appear for the Commissioners for His Majesty’s Revenue and Customs or an officer of Revenue and Customs in proceedings under this Chapter.
Exemplar quote from bill: ... this section “relevant court” means— (a) in England and Wales and Northern Ireland, a magistrates’ court, and (b) in Scotland, the sheriff. 303Z53 Powers for prosecutors to appear in proceedings (1) ...The Director of Public Prosecutions or the Director of Public Prosecutions for Northern Ireland may appear for a constable or an accredited financial investigator in proceedings under this Chapter if the Director—... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002 274 (a) is asked by,...
- ‼️ Justice System
  This change could impact the justice system by providing prosecutors with new powers to represent certain parties in proceedings related to cryptoassets, potentially affecting the outcomes of these proceedings.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Amendments to the Proceeds of Crime Act 2002
The bill proposes amendments to the Proceeds of Crime Act 2002, specifically to section 2C(3A) regarding prosecuting authorities, and to Part 2 (confiscation: England and Wales) and Part 3 (confiscation: Scotland).
Exemplar quote from bill: ...te Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 2 — Consequential and other amendments 287 PART 2 CONSEQUENTIAL AND OTHER AMENDMENTS Amendments to the Proceeds of Crime Act 2002 2 ...In section 2C(3A) of the Proceeds of Crime Act 2002 (prosecuting authorities), for “or 303Z19” substitute “, 303Z19, 303Z53 or 303Z65”.... 3 (1) Part 2 of the Proceeds of Crime Act 2002 (confiscation: England and Wales) is amended as follows. (2) In section 7 (recoverable amount)— (a) in subsection (4)(c), for “or 303Z14(4)” substitute ...
- ‼️ Justice System
  This change could impact the justice system by amending existing legislation related to prosecuting authorities and confiscation, potentially affecting how these laws are enforced and interpreted.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 312(2) of the Proceeds of Crime Act 2002
The bill proposes to expand the functions of the Scottish Ministers in relation to cryptoassets, including their detention, release, forfeiture, and the continuation of crypto wallet freezing orders pending appeal. It also includes provisions for the detention of proceeds from the conversion of detained or frozen cryptoassets.
Exemplar quote from bill: ...e application or appeal, or any further application or appeal relating to the same matter, may be taken, made or brought by a different accredited financial investigator of the same description.” (7) ...In section 312(2) (performance of functions by Scottish Ministers)— (a) in paragraph (c), for “271(3) and (4)” substitute “271”, and (b) after paragraph (p) insert— “(q) section 303Z20(3) (cryptoassets); (r) section 303Z25 (codes of practice); (s) section 303Z28(5)(b) (further detention of seized cryptoassetrelated items); (t) section 303Z32(5)(b) (further detention of seized cryptoassets); (u) section 303Z34(4) and (5)(b)(i) (release of cryptoassets and cryptoasset-related items); (v) section 303Z35(5) (crypto wallets); (w) section 303Z41(2)(b) (forfeiture of cryptoassets); (x) section 303Z42(10) (forfeiture of cryptoassets: supplementary); (y) section 303Z44 (agreements about associated and joint property); (z) section 303Z45(10) (associated and joint property: default of agreement); (z1) section 303Z46(2) (continuation of crypto wallet freezing order pending appeal); (z2) section 303Z47(1) (sections 303Z41 to 303Z45: appeals); (z3) section 303Z57(7)(b) (detained cryptoassets: detention of proceeds of conversion); (z4) section 303Z58(6)(b) (frozen crypto wallets: detention of proceeds of conversion); (z5) section 303Z60(2) (forfeiture of converted cryptoassets); (z6) section 303Z61(1) (appeal against decision under section 303Z60).”... 7 (1) In section 316(1) (general interpretation)— (a) in the definition of “the court”, for “and 3B” substitute “, 3B, 3C, 3D, 3E and 3F”; (b) at the appropriate places insert— ““cryptoasset” has the...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 316(1) of the Proceeds of Crime Act 2002
The bill proposes to add definitions for "cryptoasset" and "crypto wallet" to section 316(1) of the Proceeds of Crime Act 2002. It also proposes to change the definition of "the court" and "justice of the peace" in relation to Northern Ireland.
Exemplar quote from bill: ...ozen crypto wallets: detention of proceeds of conversion); (z5) section 303Z60(2) (forfeiture of converted cryptoassets); (z6) section 303Z61(1) (appeal against decision under section 303Z60).” 7 (1) ...In section 316(1) (general interpretation)— (a) in the definition of “the court”, for “and 3B” substitute “, 3B, 3C, 3D, 3E and 3F”; (b) at the appropriate places insert— ““cryptoasset” has the meaning given by section 303Z20;”; ““crypto wallet” has the meaning given by section 303Z20;”; ““justice of the peace”, in relation to Northern Ireland, means lay magistrate;”.... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 2 — Consequential and other amendments 292 8 (1) Part 8 of the Proceeds of Crim...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 8 of the Proceeds of Crime Act 2002
The bill proposes to add a new subsection (3D) to section 341 of the Proceeds of Crime Act 2002, which defines a "cryptoasset investigation" and outlines its scope. This includes investigations into the derivation of detained or converted cryptoassets, and whether such assets are intended to be used in unlawful conduct.
Exemplar quote from bill: ...eland, means lay magistrate;”. 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 2 — Consequential and other amendments 292 8 (1) ...Part 8 of the Proceeds of Crime Act 2002 (investigations) is amended as follows. (2) In section 341 (investigations), after subsection (3C) insert— “(3D) For the purposes of this Part a cryptoasset investigation is an investigation for the purposes of Chapter 3C, 3D, 3E or 3F of Part 5 and includes investigation into— (a) the derivation of cryptoassets detained under Chapter 3C (including where the cryptoassets have been converted into money in accordance with Chapter 3F), (b) whether cryptoassets or converted cryptoassets detained under Chapter 3C or 3F are intended by any person to be used in unlawful conduct, (c) the derivation of cryptoassets held in a crypto wallet in relation to which a crypto wallet freezing order made under section 303Z37 has effect (including where the cryptoassets have been converted into money in accordance with Chapter 3F), or (d) whether cryptoassets held in such a wallet are intended by any person to be used in unlawful conduct.”... (3) In section 342 (offences of prejudicing investigation), in subsection (1) after “frozen funds investigation” insert “, a cryptoasset investigation”. (4) In section 343 (judges), in subsection (2)...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 381 (requirements for making of production order), subsection (2), paragraph (bg) and (bh)
The bill proposes the insertion of new provisions that allow for the recovery of cryptoassets in the case of an investigation into their derivation or intended use. If the cryptoassets have been converted into money, the converted cryptoassets are also recoverable.
Exemplar quote from bill: ...tigation” substitute “, a frozen funds investigation or a cryptoasset investigation”. (7) In section 346 (requirements for making of production order), in subsection (2), after paragraph (bf) insert— ...“(bg) in the case of a cryptoasset investigation into the derivation of cryptoassets, the cryptoassets the application for the order specifies as being subject to the investigation (or, if the cryptoassets have been converted into money in accordance with Chapter 3F of Part 5, the converted cryptoassets) are recoverable property; (bh) in the case of a cryptoasset investigation into the intended use of cryptoassets, the cryptoassets the application for the order specifies as being subject to the investigation (or, if the cryptoassets have been converted into money in accordance with Chapter 3F of Part 5, the converted cryptoassets) are intended by any person to be used in unlawful conduct.”... (8) In section 350 (Government departments), in subsection (5)(a) for “or a frozen funds investigation” substitute “, a frozen funds investigation or a cryptoasset investigation”. (9) In section 352 ...
- ‼️ Economic Impact
  This change could potentially impact the cryptoasset market by providing a mechanism for the recovery of assets in the case of an investigation.
- ‼️ Justice System
  This change could potentially impact the justice system by providing a new tool for law enforcement in the investigation of economic crimes involving cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Various sections and subsections
The bill proposes the substitution of various phrases in different sections and subsections to include "cryptoasset investigation" alongside "frozen funds investigation".
Exemplar quote from bill: ...on, the limited partners at that time who are solvent must take all reasonable steps to ensure that the partnership’s affairs are wound up by a person who is not a limited partner at that time. (3BA) ...For example: "In section 385 (Government departments), in subsection (4)(b) for “or a frozen funds investigation” substitute “, a frozen funds investigation or a cryptoasset investigation”."...5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 2 — Partnerships Chapter 1 — Limited partnerships etc. 121 (a) in the heading, omit “private fund limited partnerships:”; ...
- ‼️ Economic Impact
  This change could potentially impact the cryptoasset market by expanding the scope of investigations to include cryptoassets.
- ‼️ Justice System
  This change could potentially impact the justice system by expanding the scope of investigations to include cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 408A (evidence overseas), subsection (5), paragraph (e)
The bill proposes the insertion of a new provision that allows for the collection of evidence overseas in relation to a cryptoasset investigation.
Exemplar quote from bill: ...as follows— (a) in subsection (1), for “or a frozen funds investigation” substitute “, a frozen funds investigation or a cryptoasset investigation”; (b) in subsection (5), after paragraph (d) insert— ...“(e) in relation to an application or request made for the purposes of a cryptoasset investigation, evidence as to a matter described in section 341(3D)(a) to (d);”.... (29) In section 408B (evidence overseas: restrictions on use) in subsection (3), after paragraph (d) insert— “(e) if the request was made for the purposes of a cryptoasset investigation, proceedings ...
- ‼️ Economic Impact
  This change could potentially impact the cryptoasset market by expanding the scope of investigations to include overseas evidence.
- ‼️ Justice System
  This change could potentially impact the justice system by expanding the scope of investigations to include overseas evidence.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
subsection (4ZB)
The bill proposes the insertion of new provisions that allow for a crypto wallet freezing order and an order for the forfeiture of cryptoassets under certain sections of the Act.
Exemplar quote from bill: ...s. (2) In subsection (2)(g), for “or a frozen funds investigation” substitute “, a frozen funds investigation or a cryptoasset investigation”. (3) In subsection (4ZB)— (a) after paragraph (b) insert— ...“(ba) a crypto wallet freezing order made under section 303Z37 of that Act; (bb) an order for the forfeiture of cryptoassets made under section 303Z41 or 303Z45 of that Act;”;... (b) after paragraph (d) insert— “(da) a crypto wallet freezing order made under paragraph 10Z7BB of that Schedule; (db) an order for the forfeiture of cryptoassets made under paragraph 10Z7CA or 10Z7...
- ‼️ Economic Impact
  This change could potentially have a significant impact on the cryptoasset market, as it introduces new regulatory measures that could affect the operation of crypto wallets.
- ‼️ Justice System
  This change could potentially increase the powers of law enforcement agencies in dealing with cryptoassets, particularly in cases involving economic crime.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Conditions for further detention of cryptoassets
The bill sets out three conditions under which a court, sheriff, or justice can order the further detention of seized cryptoassets. These conditions relate to suspicions that the cryptoassets are intended for use in terrorism, are resources of a proscribed organisation, or are property earmarked as terrorist property.
Exemplar quote from bill: ...a) in relation to England and Wales and Northern Ireland, by the Commissioners for His Majesty’s Revenue and Customs or an authorised officer; (b) in relation to Scotland, by a procurator fiscal. (7) ...The court, sheriff or justice may make an order under subparagraph (1) if satisfied, in relation to the cryptoassets to be further detained, that condition 1, condition 2 or condition 3 is met.... (8) Condition 1 is that there are reasonable grounds for suspecting that the cryptoassets are intended to be used for the purposes of terrorism and that either— (a) their continued detention is justi...
- ‼️ National Security
  This change could potentially enhance national security by providing clear conditions under which cryptoassets linked to terrorism can be further detained.
- ‼️ Justice System
  This change could impact the justice system by setting out specific conditions that must be met for the further detention of seized cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Safekeeping and release of seized cryptoassets
The bill introduces provisions for the safekeeping of seized cryptoassets during their detention period. It also provides for the release of these assets by a magistrates' court or sheriff if certain conditions are met.
Exemplar quote from bill: ...toassets 10Z7AH(1) An authorised officer must arrange for any item of property seized under paragraph 10Z7AA to be safely stored throughout the period during which it is detained under this Part. (2) ...An authorised officer must arrange for any cryptoassets seized under paragraph 10Z7AD to be safely stored throughout the period during which they are detained under this Part.... Release of cryptoasset-related items and cryptoassets 10Z7AI(1) This paragraph applies while any cryptoasset or other item of property is detained under this Part. (2) A magistrates’ court or (in Sco...
- ‼️ National Security
  This change could potentially enhance national security by ensuring the safekeeping of seized cryptoassets linked to terrorism.
- ‼️ Justice System
  This change could impact the justice system by introducing new responsibilities for authorised officers and courts in relation to the safekeeping and release of seized cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision that allows a relevant court to vary or set aside a crypto wallet freezing order. This can be done on the application of an enforcement officer or any person affected by the order.
Exemplar quote from bill: ...toassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 309 (8) A crypto wallet freezing order must provide for notice to be given to persons affected by the order. ...Variation and setting aside of crypto wallet freezing order 10Z7BC(1) The relevant court may at any time vary or set aside a crypto wallet freezing order on an application made by— (a) an enforcement officer, or (b) any person affected by the order.... (2) But an enforcement officer may not make an application under sub-paragraph (1) unless the officer is a senior officer or is authorised to do so by a senior officer. (3) Before varying or setting ...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the freezing of crypto wallets, providing a mechanism for affected parties to challenge such orders.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision that allows for exclusions to be made from the prohibition on making withdrawals or payments from a frozen crypto wallet. This power is included in the power to vary a crypto wallet freezing order.
Exemplar quote from bill: ...an opportunity to any person who may be affected by its decision. (4) In relation to Scotland, the references in this paragraph to setting aside an order are to be read as references to recalling it. ...Exclusions 10Z7BD(1) The power to vary a crypto wallet freezing order includes (amongst other things) power to make exclusions from the prohibition on making withdrawals or payments from the crypto wallet to which the order applies.... (2) Exclusions from the prohibition may also be made when the order is made. (3) An exclusion may (amongst other things) make provision for the purpose of enabling a person by or for whom the crypto ...
- ‼️ Justice System
  This change could potentially affect the legal processes related to the freezing of crypto wallets, providing a mechanism for certain exclusions to be made from the prohibition on making withdrawals or payments from a frozen crypto wallet.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Paragraph 10Z7CC(1)
The bill introduces a new provision that allows for the application of paragraphs 10Z7CD and 10Z7CE if an application is made regarding cryptoassets, the court or sheriff is satisfied that some or all of the cryptoassets are terrorist cryptoassets, and there exists property associated with the cryptoassets.
Exemplar quote from bill: ...ulations under subparagraph (7) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. Associated and joint property 10Z7CC(1) ...Paragraphs 10Z7CD and 10Z7CE apply if— (a) an application is made under paragraph 10Z7CA in respect of cryptoassets, (b) the court or sheriff is satisfied that some or all of the cryptoassets are terrorist cryptoassets, and (c) there exists property that is associated with the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in paragraph (b).... (2) Paragraphs 10Z7CD and 10Z7CE also apply in England and Wales and Northern Ireland if— (a) an application is made under paragraph 10Z7CA in respect of cryptoassets, (b) the court is satisfied that...
- ‼️ National Security
  This change could potentially enhance national security by providing a mechanism to deal with cryptoassets associated with terrorism.
- ‼️ Justice System
  This change could impact the justice system by introducing new procedures for dealing with cryptoassets in terrorism-related cases.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Paragraph 10Z7CD(1)
The bill introduces a new provision that allows the magistrates’ court or sheriff to make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order, instead of making an order under paragraph 10Z7CA(3), if this paragraph applies and the person who applied for the order and the person who holds the associated property or who is the excepted joint owner agree.
Exemplar quote from bill: ...o the excepted joint owner’s share of property are to so much of the property as would have been theirs if the joint tenancy had been severed. Agreements about associated and joint property 10Z7CD(1) ...Where— (a) this paragraph applies, and (b) the person who applied for the order under paragraph 10Z7CA (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree, the magistrates’ court or sheriff may, instead of making an order under paragraph 10Z7CA(3), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order.... (2) The amount of the payment is (subject to sub-paragraph (3)) to be the amount which the persons referred to in sub-paragraph (1)(b) agree represents— (a) in a case where this paragraph applies by ...
- ‼️ Justice System
  This change could impact the justice system by introducing a new mechanism for dealing with associated property or joint owners in cases involving cryptoassets and terrorism.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Paragraph 10Z7CE(1)
The bill introduces a new provision that allows the magistrates’ court or sheriff to transfer the application made under paragraph 10Z7CA to the appropriate court if this paragraph applies and there is no agreement under paragraph 10Z7CD.
Exemplar quote from bill: ...made by a magistrates’ court, into the Consolidated Fund; (ii) if the order was made by the sheriff, into the Scottish Consolidated Fund. Associated and joint property: default of agreement 10Z7CE(1) ...Where this paragraph applies and there is no agreement under paragraph 10Z7CD, the magistrates’ court or sheriff may transfer the application made under paragraph 10Z7CA to the appropriate court.... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 316 (2) The “appro...
- ‼️ Justice System
  This change could impact the justice system by introducing a new mechanism for transferring cases involving cryptoassets and terrorism to the appropriate court.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sub-paragraphs (10) to (13) of the Economic Crime and Corporate Transparency Bill
The bill introduces provisions for compensation to be paid to a person who has suffered loss as a result of the seizure of forfeitable property or the making of a crypto wallet freezing order, provided the circumstances are deemed exceptional. The amount of compensation is to be determined by the appropriate court, magistrates’ court, or sheriff, and is to be paid in the same way as compensation under paragraph 10Z7CM.
Exemplar quote from bill: ...t just and equitable to do so. (9) An order under sub-paragraph (6) or (7) must provide for the payment of an amount to the person who holds the associated property or who is an excepted joint owner. ...(10) In making an order under sub-paragraph (6) or (7), and including provision in it by virtue of sub-paragraph (9), the appropriate court, the magistrates’ court or the sheriff (as the case may be) must have regard to— (a) the rights of any person who holds the associated property or who is an excepted joint owner and the value to that person of that property or (as the case may be) of that person’s share (including any value that cannot be assessed in terms of money), and (b) the interest of the person who applied for the order under paragraph 10Z7CA in realising the value of the forfeitable property....value that cannot be assessed in terms of money), and (b) the interest of the person who applied for the order under paragraph 10Z7CA in realising the value of the forfeitable property. (11) If the ap...
- ‼️ Justice System
  The proposed change could potentially increase fairness in the justice system by providing compensation to those who have suffered loss due to the seizure of their property or the freezing of their crypto wallet.
- ‼️ Economic Impact
  The proposed change could have economic implications for individuals who have had their property seized or crypto wallet frozen, as they may be able to recover some of their losses through compensation.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sub-paragraphs (1) to (8) of paragraph 10Z7CG of the Economic Crime and Corporate Transparency Bill
The bill introduces provisions for appeals against orders for the forfeiture of cryptoassets. Any party to the proceedings may appeal against the making of an order, a decision not to make an order, or a decision to include or not include provision in the order. Appeals must be made within 30 days of the order or decision being made. If an appeal is upheld, the court may order the release of the property, unless proceedings are started against any person for an offence with which the property is connected.
Exemplar quote from bill: ...r otherwise disposed of. (4) Sub-paragraph (3) of paragraph 10Z7AF applies for the purposes of sub-paragraph (3) as it applies for the purposes of that paragraph. Paragraphs 10Z7CA to 10Z7CE: appeals ...10Z7CG(1) Any party to proceedings for an order for the forfeiture of cryptoassets under paragraph 10Z7CA may appeal against— (a) the making of an order under paragraph 10Z7CA; (b) the making of an order under paragraph 10Z7CE(7); (c) a decision not to make an order under paragraph 10Z7CA unless the reason that no order was made is that an order was instead made under paragraph 10Z7CD; (d) a decision not to make an order under paragraph 10Z7CE(7). Paragraphs (c) and (d) do not apply if the application for the order under paragraph 10Z7CA was transferred in accordance with paragraph 10Z7CE(1).... (2) Where an order under paragraph 10Z7CD is made by a magistrates’ court, any party to the proceedings for the order (including any party to the proceedings under paragraph 10Z7CA that preceded the ...
- ‼️ Justice System
  The proposed change could potentially increase fairness in the justice system by providing a mechanism for appealing against orders for the forfeiture of cryptoassets, thus ensuring that individuals have the opportunity to challenge such orders.
- ‼️ Economic Impact
  The proposed change could have economic implications for individuals whose cryptoassets are subject to forfeiture, as the ability to appeal against such orders could potentially enable them to recover their assets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Proceeds of the realisation of detained cryptoassets
The bill proposes a new procedure for the application of proceeds from the realisation of detained cryptoassets. The proceeds must first be used to make any required payments, then to cover legal expenses, then to cover costs of storage, insurance, and realisation of the property, and finally, the remaining proceeds must be paid into the Consolidated Fund or the Scottish Consolidated Fund, depending on the court that ordered the forfeiture.
Exemplar quote from bill: ...ation would facilitate criminal conduct by any person. Proceeds of realisation 10Z7CJ(1) This paragraph applies where any cryptoasset or other item of property is realised under paragraph 10Z7CI. (2) ...The proceeds of the realisation must be applied as follows— (a) first, they must be applied in making any payment required to be made by virtue of paragraph 10Z7CE(9); (b) second, they must be applied in making any payment of legal expenses which, after giving effect to paragraph 10Z7CA(5) (including as applied by paragraph 10Z7CE(5)), are payable under this sub-paragraph in pursuance of provision under paragraph 10Z7CA(4) or, as the case may be, 10Z7CE(4); (c) third, they must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the property whilst detained under this Schedule and in realising the property; (d) fourth, they must be paid— (i) if the property was forfeited by a magistrates’ court or the High Court, into the Consolidated Fund; (ii) if the property was forfeited by the sheriff or the Court of Session, into the Scottish Consolidated Fund.... (3) If what is realised under paragraph 10Z7CI represents part only of an item of property, the reference in sub-paragraph (2)(c) to costs incurred in storing or insuring the property is to be read a...
- ‼️ Economic Impact
  This change could potentially increase the funds available to the government through the Consolidated Fund or the Scottish Consolidated Fund, depending on the amount of cryptoassets forfeited and realised.
- ‼️ Justice System
  This change provides a clear procedure for the application of proceeds from the realisation of detained cryptoassets, which could potentially streamline the process and reduce disputes over the allocation of these funds.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes new regulations for the seizure of cryptoassets by counter-terrorism financial investigators and immigration officers. It also outlines the process for compensation and the conditions under which these regulations apply.
Exemplar quote from bill: ...thern Ireland. 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 324 ...(7) If the cryptoassets were seized, or the crypto wallet freezing order was applied for, by a counter-terrorism financial investigator, the compensation is to be paid as follows—... (a) in the case of a counter-terrorism financial investigator who was— (i) a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of ...
- ‼️ National Security
  The proposed changes could potentially enhance the ability of counter-terrorism financial investigators and immigration officers to seize cryptoassets, which could be used in illegal activities.
- ‼️ Economic Impact
  The proposed changes could potentially impact the cryptoasset market, as they introduce new regulations for the seizure and compensation of these assets.
- ‼️ Justice System
  The proposed changes could potentially impact the legal processes related to the seizure and compensation of cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes new regulations for the conversion of detained cryptoassets into money. It outlines the conditions under which these regulations apply and the process for conversion.
Exemplar quote from bill: ...ancial institution. (4) For the purposes of Parts 2 to 4, converted cryptoassets detained under this Part are not to be treated as cash detained under this Schedule. Detained cryptoassets: conversion ...10Z7DA(1) Sub-paragraph (2) applies while any cryptoassets are detained in pursuance of an order under paragraph 10Z7AE or 10Z7AG (including where cryptoassets are subject to forfeiture proceedings).... (2) A person within sub-paragraph (3) may apply to the relevant court for an order requiring all of the cryptoassets detained pursuant to the order to be converted into money. (3) The following perso...
- ‼️ National Security
  The proposed changes could potentially enhance the ability of authorities to convert detained cryptoassets into money, which could be used to fund counter-terrorism efforts.
- ‼️ Economic Impact
  The proposed changes could potentially impact the cryptoasset market, as they introduce new regulations for the conversion of these assets into money.
- ‼️ Justice System
  The proposed changes could potentially impact the legal processes related to the conversion of detained cryptoassets into money.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision for the conversion of forfeited cryptoassets into money before they are realised or destroyed.
Exemplar quote from bill: ...0Z7DJ(1) applies in relation to the converted cryptoassets as if they had been detained under paragraph 10Z7DD and forfeited under paragraph 10Z7DG (and accordingly paragraph 10Z7CI ceases to apply). ...(2) Where— (a) cryptoassets are forfeited under paragraph 10Z7CA or 10Z7CE, and (b) before the cryptoassets are realised or destroyed in accordance with paragraph 10Z7CI, an order is made under paragraph 10Z7DB requiring the cryptoassets to be converted into money,... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 328 paragraph 10Z7...
- ‼️ Economic Impact
  This change could potentially have a significant economic impact, as it allows for the conversion of forfeited cryptoassets into money, which could then be used for various purposes.
- ‼️ Justice System
  This change could potentially impact the justice system by providing a new mechanism for dealing with forfeited cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision for the detention of the proceeds of conversion when cryptoassets are converted into money.
Exemplar quote from bill: ...he appeal is to be treated as if it had been made under paragraph 10Z7DH(1) in relation to the determination of an application under paragraph 10Z7DG for the forfeiture of the converted cryptoassets. ...Detained cryptoassets: detention of proceeds of conversion 10Z7DD(1) This paragraph applies where cryptoassets are converted into money in accordance with an order under paragraph 10Z7DA.... (2) The proceeds of the conversion (the “converted cryptoassets”) may be detained initially until the end of the period that the cryptoassets could, immediately before the conversion, have been detai...
- ‼️ Economic Impact
  This change could potentially have a significant economic impact, as it allows for the detention of the proceeds of conversion when cryptoassets are converted into money.
- ‼️ Justice System
  This change could potentially impact the justice system by providing a new mechanism for dealing with the proceeds of conversion when cryptoassets are converted into money.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision for the release of detained converted cryptoassets.
Exemplar quote from bill: ...nctions under this Schedule, to an authority exercising equivalent functions in a foreign country, or (d) by a person under section 375A or 408A of the Proceeds of Crime Act 2002 (evidence overseas). ...Release of detained converted cryptoassets 10Z7DF(1) This paragraph applies while any converted cryptoassets are detained under paragraph 10Z7DD or 10Z7DE.... (2) The relevant court may, subject to sub-paragraph (7), direct the release of the whole or any part of the converted cryptoassets if the following condition is met. (3) The condition is that, on an...
- ‼️ Economic Impact
  This change could potentially have a significant economic impact, as it allows for the release of detained converted cryptoassets.
- ‼️ Justice System
  This change could potentially impact the justice system by providing a new mechanism for dealing with detained converted cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill introduces a provision for the forfeiture of detained converted cryptoassets.
Exemplar quote from bill: ...cluded; (b) if (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the converted cryptoassets are connected, until the proceedings are concluded. ...Forfeiture 10Z7DG(1) This paragraph applies while any converted cryptoassets are detained under paragraph 10Z7DD or 10Z7DE.... (2) An application for the forfeiture of some or all of the converted cryptoassets may be made— (a) to a magistrates’ court by, the Commissioners for His Majesty’s Revenue and Customs or an authorise...
- ‼️ Economic Impact
  This change could potentially have a significant economic impact, as it allows for the forfeiture of detained converted cryptoassets.
- ‼️ Justice System
  This change could potentially impact the justice system by providing a new mechanism for dealing with detained converted cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes amendments to the Anti-terrorism, Crime and Security Act 2001 to allow for the forfeiture of converted cryptoassets that are deemed to be involved in economic crime or earmarked as terrorist property. The amendments also provide for the continued detention of these assets until the conclusion of any related proceedings, including appeals. The bill also outlines the appeal process for parties aggrieved by forfeiture orders or decisions.
Exemplar quote from bill: ...he converted cryptoassets may be made— (a) to a magistrates’ court by, the Commissioners for His Majesty’s Revenue and Customs or an authorised officer; (b) to the sheriff, by the Scottish Ministers. ...(3) The court or sheriff may order the forfeiture of some or all of the converted cryptoassets if satisfied that the converted cryptoassets to be forfeited— (a) are within subsection (1)(a) or (b) of section 1, or (b) are property earmarked as terrorist property.... (4) But in the case of property which belongs to joint tenants, one of whom is an excepted joint owner, the order may not apply to so much of it as the court thinks is attributable to the excepted jo...
- ‼️ Justice System
  The proposed changes could significantly impact the justice system by introducing new mechanisms for dealing with cryptoassets involved in economic crime or terrorism. This could potentially enhance the ability of law enforcement agencies to disrupt criminal activities and seize illicit assets.
- ‼️ Economic Impact
  The proposed changes could have economic implications by potentially affecting the use of cryptoassets, which are increasingly being used for various transactions. The changes could deter the use of cryptoassets for illicit activities, but could also potentially impact legitimate users.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Amendments to the Anti-terrorism, Crime and Security Act 2001
The bill proposes amendments to the Anti-terrorism, Crime and Security Act 2001 to provide for the application of forfeited converted cryptoassets and any accrued interest. The assets are to be used to cover reasonable expenses incurred in the safe storage, conversion, and detention of the assets. Any remaining assets are to be paid into the Consolidated Fund or the Scottish Consolidated Fund, depending on the court that ordered the forfeiture.
Exemplar quote from bill: ...scription order comes into force. (3) In this paragraph a “deproscription order” means an order under section 3(3)(b) or (8) of the Terrorism Act 2000. Application of forfeited converted cryptoassets ...10Z7DJ(1) Converted cryptoassets detained under paragraph 10Z7DD and forfeited under paragraph 10Z7DG, and any accrued interest on them, must be applied as follows— (a) first, they must be applied in making any payment of reasonable expenses incurred by an authorised officer in connection with the safe storage of the cryptoassets mentioned in paragraph 10Z7DD(1) during the period the cryptoassets were detained under Part 4BA; (b) second, they must be applied in making any payment of reasonable expenses incurred by an authorised officer in connection with the conversion of those cryptoassets under paragraph 10Z7DA(6); (c) third, they must be applied in making any payment of reasonable expenses incurred by an authorised officer in connection with the detention of the converted cryptoassets under this Part; (d) fourth, they must be paid— (i) if forfeited by a magistrates’ court in England and Wales or Northern Ireland, into the Consolidated Fund, and (ii) if forfeited by the sheriff, into the Scottish Consolidated Fund.... (2) Converted cryptoassets detained under paragraph 10Z7DE and forfeited under paragraph 10Z7DG, and any accrued interest on them, must be applied as follows— (a) first, they must be applied in makin...
- ‼️ Justice System
  The proposed changes could impact the justice system by providing a clear framework for the application of forfeited converted cryptoassets. This could potentially enhance the efficiency and effectiveness of asset forfeiture processes.
- ‼️ Economic Impact
  The proposed changes could have economic implications by potentially increasing the funds available to the Consolidated Fund or the Scottish Consolidated Fund, which could be used for various public services.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Paragraph 10Z7DL(1) to 10Z7DL(10)
The bill introduces a provision for compensation to individuals who have had their cryptoassets seized and converted into money, or detained, under certain circumstances. The compensation amount is determined by the court based on the loss suffered and other relevant circumstances.
Exemplar quote from bill: ...that paragraph, and (b) in relation to converted cryptoassets detained under paragraph 10Z7DE, some or all of the cryptoassets mentioned in sub-paragraph (1) of that paragraph. Compensation 10Z7DL(1) ...This paragraph applies if no order is made under paragraph 10Z7DG in respect of converted cryptoassets detained under this Part. Where this paragraph applies, the following may make an application to the relevant court for compensation— (a) a person to whom the relevant cryptoassets belonged immediately before they were seized; (b) a person from whom the relevant cryptoassets were seized; (c) a person by or for whom the crypto wallet mentioned in paragraph 10Z7DE(1) was administered immediately before the crypto wallet freezing order was made in relation to the crypto wallet....let. (3) If the relevant court is satisfied that— 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terroris...
- ‼️ Economic Impact
  This change could have significant economic implications for individuals who have had their cryptoassets seized, providing a potential avenue for financial recovery.
- ‼️ Justice System
  This change introduces a new legal process for compensation related to seized cryptoassets, potentially affecting how such cases are handled in the justice system.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
sub-paragraph (1AB) to (1AE)
The bill introduces definitions for "cryptoasset exchange provider" and "custodian wallet provider", and provides a definition for "cryptoasset". It also gives the Secretary of State the power to amend these definitions by regulations.
Exemplar quote from bill: ...tion)— (i) omit the “and” after paragraph (ha), and (ii) after paragraph (i) insert— “(j) a cryptoasset exchange provider, and (k) a custodian wallet provider.”; (b) after sub-paragraph (1AA) insert— ...“(1AB) For the purposes of sub-paragraph (1)(j), “cryptoasset exchange provider” means a firm or sole practitioner who by way of business provides one or more of the following services, including where the firm or sole practitioner does so as creator or issuer of any of the cryptoassets involved— (a) exchanging or arranging or making arrangements with a view to the exchange of, cryptoassets for money or money for cryptoassets, (b) exchanging, or arranging or making arrangements with a view to the exchange of, one cryptoasset for another, or (c) operating a machine which utilises automated processes to exchange cryptoassets for money or money for cryptoassets. (1AC) For the purposes of sub-paragraph (1)(k), “custodian wallet provider” means a firm or sole practitioner who by way of business provides services to safeguard, or to safeguard and administer— (a) cryptoassets on behalf of its customers, or (b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets. (1AD) For the purposes of sub-paragraphs (1AB) and (1AC), “cryptoasset” means a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology and can be transferred, stored or traded electronically. (1AE) For the purposes of sub-paragraph (1AB)— (a) “cryptoasset” includes a right to, or interest in, the cryptoasset; (b) “money” means— (i) money in sterling, (ii) money in any other currency, or (iii) money in any other medium of exchange, but does not include a cryptoasset. (1AF) The Secretary of State may by regulations amend the definitions in sub-paragraphs (1AB) to (1AE).”...medium of exchange, but does not include a cryptoasset. (1AF) The Secretary of State may by regulations amend the definitions in sub-paragraphs (1AB) to (1AE).” 8 In section 123 (orders and regulation...
- ‼️ Economic Impact
  The definitions and regulatory powers introduced could have significant implications for businesses operating in the cryptoasset sector, potentially affecting their operations and compliance requirements.
- ‼️ Political Power
  The power given to the Secretary of State to amend these definitions by regulations could have implications for the balance of power between the legislative and executive branches of government.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 11 — Failure to prevent fraud: fraud offences
The bill proposes the insertion of a new schedule that outlines offences under the Fraud Act 2006, including fraud, participating in fraudulent business carried on by a sole trader, and obtaining services dishonestly.
Exemplar quote from bill: ...ce under section 993 of the Companies Act 2006 (fraudulent trading). 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 11 — Failure to prevent fraud: fraud offences 343 6 ...An offence under any of the following provisions of the Fraud Act 2006— (a) section 1 (fraud); (b) section 9 (participating in fraudulent business carried on by sole trader); (c) section 11 (obtaining services dishonestly).... 5 HL Bill 138 58/3 Economic Crime and Corporate Transparency Bill © Parliamentary copyright House of Lords and House of Commons 2023 This publication may be reproduced under the terms of the Open Par...
- ‼️ Justice System
  This change could potentially increase the effectiveness of the justice system in dealing with economic crimes, as it clearly defines what constitutes an offence under the Fraud Act 2006.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 11A
The bill introduces a new offence for a person who is subject to director disqualification sanctions to act as a director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company.
Exemplar quote from bill: ...) The Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)) is amended as follows. (2) After Article 15 insert— “15A Designated persons under sanctions legislation...“(1) It is an offence for a person who is subject to director disqualification sanctions to act as a director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company (but see paragraph (2)).... (2) Paragraph (1) does not apply— (a) to the extent that an exception from paragraph (1) has been created by virtue of section 15(3A) of the Sanctions and AntiMoney Laundering Act 2018, or (b) to any...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 13
The bill amends section 13 to include the new offence introduced in section 11A in the list of offences that carry criminal penalties.
Exemplar quote from bill: ...ulations under section 1 of the Sanctions and Anti-Money Laundering Act 2018 is a person subject to director disqualification sanctions for the purposes of this section (see section 3A of that Act).” ...(3) In section 13 (criminal penalties), after “section 11” insert “or 11A”.... (4) In section 14 (offences by body corporate), for subsection (1) substitute— “(1) Where— (a) a body corporate is— (i) guilty of an offence of acting in contravention of a disqualification order or ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Article 22 (register of disqualification orders and undertakings)
The bill proposes to add to the register of disqualification orders and undertakings, persons who are subject to director disqualification sanctions and any licenses issued that authorise such a person to do anything that would otherwise be prohibited.
Exemplar quote from bill: ...tue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018.” (5) In Article 22 (register of disqualification orders and undertakings), in paragraph (3), after sub-paragraph (c) insert— ...“(d) persons who are subject to director disqualification sanctions within the meaning of Article 15A; (e) any licences issued by virtue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018 that authorise such a person to do anything that would otherwise be prohibited by Article 15A(1).””... Clause 40 19 Page 27, line 5, column 2, after “court” insert “or the authority of a licence, or in respect of which an exception applies,” 20 Page 27, leave out lines 14 to 17 and insert— 21 Page 28,...
- ‼️ Justice System
  This change could potentially increase accountability and transparency in the corporate sector by keeping track of individuals who have been disqualified from director positions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006, section 113
The bill proposes to amend the Companies Act 2006 to require that the register of members include the required information and the date of registration for each member, as well as the date of cessation of membership for any person who ceases to be a member.
Exemplar quote from bill: ...ion (2).” (3) For the italic heading “General” at the beginning of Chapter 2 of Part 8 substitute “Duty to keep register”. (4) In section 113 (register of members)— (a) for subsection (2) substitute— ...“(2) There must be entered in the register, in respect of each person who is a member— (a) the required information (see sections 113A and 113B), and (b) the date on which the person was registered as a member. (2A) Where a person ceases to be a member there must be entered in the register the date at which the person’s membership ceased.”...; (b) in subsection (3), omit “, with the names and addresses of the members,”; (c) in subsection (5), after “show a single” insert “service”; (d) in subsection (6), omit “, with the names and address...
- ‼️ Justice System
  This change could potentially increase transparency and accountability in the corporate sector by ensuring that accurate and up-to-date information is maintained about company members.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Companies Act 2006, section 113
The bill proposes to amend the Companies Act 2006 to require that if any of the information required to be entered in a company's register of members changes, the company must retain the old information in the register until its removal is authorised, and must include a note recording the date of the change and the date it was entered in the register.
Exemplar quote from bill: ...dresses of the members,”; (c) in subsection (5), after “show a single” insert “service”; (d) in subsection (6), omit “, with the names and addresses of the members,”; (e) after subsection (6) insert— ...“(6A) Where any of the information required to be entered in a company’s register of members changes and, at the time of the change, it is a non-traded company— (a) the fact that the information has changed does not relieve the company from the obligation to include the old information in the register if it has not already done so, (b) the old information must be retained in the register until its removal is authorised by section 121 or by court order under section 125, and (c) a note must be included in the register recording the date on which the information changed and the date on which the change was entered in the register.”... 11 (6B) Where any of the information required to be entered in a company’s register of members changes and, at the time of the change, it is a traded company, the company is not required to include o...
- ‼️ Justice System
  This change could potentially increase transparency and accountability in the corporate sector by ensuring that accurate and up-to-date information is maintained about changes to company members' information.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Offences and penalties related to false statements
The bill proposes amendments to the penalties for making false statements in compliance with certain sections. It also extends the liability for such offences to every officer of a firm in default. The penalties include imprisonment, fines, or both, with the severity varying based on the jurisdiction and whether the conviction is on indictment or summary.
Exemplar quote from bill: ...standard scale; (c) on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale. 113J Aggravated false statement offences in connection with sections 113E to 113G ...(1) A person commits an offence if, in purported compliance with section 113E or 113F, the person makes a statement that the person knows to be misleading, false or deceptive in a material particular. (2) A person commits an offence if, in purported compliance with a notice under section 113G, the person makes a statement that the person knows to be misleading, false or deceptive in a material particular. (3) Where an offence under subsection (1) or (2) is committed by a firm, the offence is also committed by every officer of the firm who is in default. (4) A person guilty of an offence under this section is liable— (a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both); (b) on summary conviction— (i) in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both); (ii) in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both) and, for continued contravention, a daily default fine not exceeding one-fifth of the statutory maximum; (iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both) and, for continued contravention, a daily default fine not exceeding one-fifth of the statutory maximum.... Duty to keep index of members”. (6) Section 115 (index of members)— (a) is moved to after the italic heading “Duty to keep index of members” inserted by subsection (5) of this section, and (b) is ren...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Verification statements for authorised corporate service providers
The bill proposes amendments to the requirements for verification statements for authorised corporate service providers. It requires the statement to specify the provider's supervisory authority or authorities for the purposes of the Money Laundering Regulations, and allows the Secretary of State to make further regulations about the contents of verification statements.
Exemplar quote from bill: ...out “790LA” and insert “790LCB” 34 Page 46, line 40, leave out “790LA” and insert “790LCB” Clause 64 35 Page 47, line 40, leave out “under section 1110A(1)(b) or” 36 Page 48, line 13, at end insert— “...(2A) A verification statement must also specify the authorised corporate service provider’s supervisory authority or authorities for the purposes of the Money Laundering Regulations. (2B) The Secretary of State may by regulations make further provision about the contents of verification statements (including provision amending this section)....” 37 Page 48, line 19, after “may” insert “by regulations” 38 Page 48, line 28, after “statement” insert “: (A)” 39 Page 48, line 30, at end insert “(B) specifying the authorised corporate service pro...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ National Security
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Delivery of documents: identity verification requirements
The bill proposes a new requirement for individuals delivering documents to the registrar. They must have their identity verified and the document must be accompanied by a statement to that effect.
Exemplar quote from bill: ... 70 55 Page 57, line 22, at end insert— “(1A) In section 9 (registration documents), omit subsection (3).” 21 56 Page 57, line 25, leave out subsection (3) and insert— “(3) After section 1067 insert— ...“Who may deliver documents to the registrar 1067A Delivery of documents: identity verification requirements etc (1) An individual may not deliver a document to the registrar on their own behalf unless— (a) their identity is verified (see section 1110A), and (b) the document is accompanied by a statement to that effect.... (2) An individual (A) may not deliver a document to the registrar on behalf of another person (B) who is of a description specified in column 1 of the following table unless— (a) the individual is of...
- ‼️ Economic Impact
  This change could potentially increase the administrative burden on individuals and businesses, as they will need to ensure that their identity is verified before they can deliver documents to the registrar. However, it could also improve the integrity of the business environment by ensuring that only verified individuals can deliver documents.
- ‼️ Justice System
  This change could impact the justice system by providing a new legal requirement for individuals delivering documents to the registrar. It could potentially increase the workload of the registrar and the courts as they deal with cases involving identity verification.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Clause 89
The Secretary of State may make regulations requiring the registrar to not make certain information available for public inspection or to refrain from disclosing certain information, except in specified circumstances.
Exemplar quote from bill: ...ilable for public inspection any address on the register that is not information to which paragraph (a) applies; (d) to refrain from disclosing any such address except in specified circumstances. (2) ...The Secretary of State may by regulations make provision requiring the registrar— (a) not to make available for public inspection any information on the register relating to an individual; (b) to refrain from disclosing information on the register relating to an individual except in specified circumstances.... (3) Regulations under subsection (1) may make provision as to— (a) who may make an application; (b) the grounds on which an application may be made; (c) the information to be included in and document...
- ‼️ Privacy and Civil Liberties
  This change could potentially impact individual privacy, as it allows for the restriction of certain information from public inspection or disclosure.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Clause 94
The Secretary of State may make regulations requiring a company to refrain from using or disclosing relevant PSC particulars, except in specified circumstances. The Secretary of State may also confer power on the registrar to make an order requiring a company to refrain from using or disclosing relevant PSC particulars, except in specified circumstances.
Exemplar quote from bill: ...ale.” 93 Use or disclosure of PSC information by companies (1) The Companies Act 2006 is amended as follows. (2) For section 790ZG substitute— “790ZG Power to make regulations protecting material (1) ...The Secretary of State may by regulations— (a) require a company to refrain from using, or refrain from disclosing, relevant PSC particulars except in circumstances specified in the regulations; (b) confer power on the registrar, on application, to make an order requiring a company to refrain from using, or refrain from disclosing, relevant PSC particulars except in circumstances specified in the regulations.... (2) “Relevant PSC particulars” means such particulars of a person with significant control over the company as may be prescribed. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill...
- ‼️ Privacy and Civil Liberties
  This change could potentially impact corporate transparency, as it allows for the restriction of certain information from use or disclosure.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
After Clause 130
The Secretary of State may make regulations in relation to the winding up of a limited partnership that corresponds or is similar to any provision of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989.
Exemplar quote from bill: .... 123 130 Power to make provision about winding up After section 29 of the Limited Partnerships Act 1907 (inserted by section 129 of this Act) insert— “30 Power to make provision about winding up (1) ...The Secretary of State may by regulations make provision in relation to the winding up of a limited partnership under section 28 or 29 that corresponds or is similar to any provision of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 (including any provision of that Act or Order that relates to the allocation of jurisdiction or distribution of business between courts in any part of the United Kingdom).... (2) Before making regulations under subsection (1) the Secretary of State must— (a) obtain the consent of the Department for the Economy in Northern Ireland, so far as the regulations relate to limit...
- ‼️ Economic Impact
  This change could potentially impact the process of winding up a limited partnership, aligning it with existing insolvency laws.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 29B of the Economic Crime and Corporate Transparency Bill
This change introduces a new requirement for general partners of a limited partnership to notify the court if they become aware of certain circumstances while an application under section 29 is pending. If they fail to do so, they commit an offence and can be fined.
Exemplar quote from bill: ...hip is pending, a general partner of the limited partnership who is or becomes aware of any of the circumstances mentioned in subsection (3) must notify the court to which the petition was presented. ...(2) Where an application under section 29 in respect of a limited partnership is pending— (a) a general partner of the limited partnership who is or becomes aware any of the circumstances mentioned in subsection (3) must notify the court to which the application was made, and (b) if the application was made by a person other than the Secretary of State, the applicant must notify the court to which the application was made if the applicant is or becomes aware of any of the circumstances mentioned in subsection (3).... (3) The circumstances are that— (a) a petition for sequestration of the limited partnership’s estate under the Bankruptcy (Scotland) Act 2016 is before a sheriff, (b) an application to the Accountant...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 29C of the Economic Crime and Corporate Transparency Bill
This change gives the Secretary of State or the Scottish Ministers the power to amend the list in section 29B(3) by regulations. However, the Secretary of State must obtain the consent of the Scottish Ministers before making such regulations. These regulations are subject to the affirmative resolution procedure.
Exemplar quote from bill: ...n a petition or application is “pending” if it has been presented or made and it has not fallen, been withdrawn or been determined. 29C Power to amend circumstances for notification under section 29B ...(1) The Secretary of State or the Scottish Ministers may by regulations amend the list in section 29B(3). (2) Before making regulations under subsection (1) the Secretary of State must obtain the consent of the Scottish Ministers. (3) Regulations made by the Secretary of State under subsection (1) are subject to the affirmative resolution procedure.... (4) Regulations made by the Scottish Ministers under subsection (1) are subject to the affirmative procedure (see Part 2 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)).”” ...
- ‼️ Political Power
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Schedule 1 (required information), Schedule 2 (registrable beneficial owners)
The bill proposes amendments to Schedule 1 and 2, which require more detailed information about registrable beneficial owners. This includes whether an individual is a registrable beneficial owner by virtue of certain paragraphs in Schedule 2, and if so, a statement as to which conditions are met and why. If the individual is a trustee, this must also be stated.
Exemplar quote from bill: ...(c) and (1A)(a)”.” After Clause 155 111 Insert the following new Clause— “Registrable beneficial owners: nominees (1) The Economic Crime (Transparency and Enforcement) Act 2022 is amended as follows. ...(2) In Schedule 1 (required information)— (a) in paragraph 3(1), for paragraphs (e) and (f) substitute— “(e) whether the individual is a registrable beneficial owner by virtue of paragraph 2(1) of Schedule 2 or paragraph 2(2) of that Schedule; (f) if the individual is a registrable beneficial owner by virtue of paragraph 2(1) of Schedule 2— (i) a statement as to which of the conditions in paragraph 6 of that Schedule is met and why, and (ii) a statement as to whether that condition is met by virtue of the individual being a trustee; (fa) if the individual is a registrable beneficial owner by virtue of paragraph 2(2) of Schedule 2, a statement as to which of the conditions in paragraph 6A of that Schedule is met and why;”;... (b) in paragraph 4, for sub-paragraph (f) substitute— “(f) whether the government or public authority is a registrable beneficial owner by virtue of paragraph 4(1) of Schedule 2 or paragraph 4(2) of ...
- ‼️ Economic Impact
  The proposed changes could increase transparency in economic transactions and potentially deter economic crime by making it more difficult for individuals to hide behind corporate entities.
- ‼️ Justice System
  The changes could potentially increase the workload for legal entities and individuals who need to provide more detailed information about beneficial ownership.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022
The bill proposes to insert new provisions into Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022. These provisions provide more detail on how information about registrable beneficial owners and managing officers is to be verified, including the kinds or sources of evidence to be used and the standard to which verification is to be carried out.
Exemplar quote from bill: ...on 7 in respect of that period, or (b) the entity is required to deliver information under Schedule 6 but has not yet done so.” 160 Verification of registrable beneficial owners and managing officers ...(1) Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022 (verification of registrable beneficial owners and managing officers) is amended as follows. (2) In subsection (2)— (a) after paragraph (a) insert— “(aa) about how the information is to be verified (including provision about the kinds or sources of evidence to be used); (ab) about the standard to which verification is to be carried out;”;... (b) after paragraph (b) insert— “(ba) about the records that must be kept in connection with verification;”; 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 3 — Register of...
- ‼️ Economic Impact
  The proposed changes could increase transparency in economic transactions and potentially deter economic crime by making it more difficult for individuals to hide behind corporate entities.
- ‼️ Justice System
  The changes could potentially increase the workload for legal entities and individuals who need to provide more detailed information about beneficial ownership.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 7 of the Economic Crime (Transparency and Enforcement) Act 2002
The bill proposes to insert a new provision into Section 7 of the Economic Crime (Transparency and Enforcement) Act 2002. This provision requires a registered overseas entity to deliver details of any changes to previously provided information to the registrar within 14 days of becoming aware of the change.
Exemplar quote from bill: ...tandard scale; (c) on summary conviction in Northern Ireland, by a fine not exceeding level 5 on the standard scale.”” 115 Insert the following new Clause— “Updating the register of overseas entities ...(1) The Economic Crime (Transparency and Enforcement) Act 2002 is amended as follows— (2) In section 7, after subsection (8) insert— “(8A) A registered overseas entity must, as soon as reasonably possible and in any event within 14 days of becoming aware of any change, deliver to the registrar details of any change to the information that has been previously provided to the registrar in accordance with section 4 or, if information has been previously delivered to the registrar under this section, any change to the latest information provided under this section, including the date such change occurred.... (8B) A registered overseas entity must deliver to the registrar the information required in accordance with subsection (8A), or deliver to the registrar a statement that there has been no change to t...
- ‼️ Economic Impact
  The proposed changes could increase transparency in economic transactions and potentially deter economic crime by making it more difficult for individuals to hide behind corporate entities.
- ‼️ Justice System
  The changes could potentially increase the workload for legal entities and individuals who need to provide more detailed information about beneficial ownership.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Clause 180
The bill proposes to insert a new provision in Clause 180 that expands the definition of an offence to include encouraging or assisting crime under Part 2 of the Serious Crime Act 2007, or inciting the commission of a listed offence under the law of Scotland.
Exemplar quote from bill: ...h-risk countries by virtue of paragraph 4(2) of Schedule 2”.” Clause 180 143 Page 164, line 34, leave out “, conspiracy or incitement” and insert “or conspiracy” 144 Page 164, line 35, at end insert— ...“(ba) constitutes an offence— (i) under Part 2 of the Serious Crime Act 2007 (England and Wales and Northern Ireland: encouraging or assisting crime) in relation to a listed offence, or (ii) under the law of Scotland of inciting the commission of a listed offence,”... 145 Page 164, line 39, after “(b)” insert “, (ba)” After Clause 180 146 Insert the following new Clause— “Power to strike out certain claims Strategic litigation against public participation: require...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
New Clause - Power to amend list of economic crimes
The bill proposes a new clause that gives the Secretary of State the power to amend the list of economic crimes by either removing an offence from the list or adding an offence to the list.
Exemplar quote from bill: ... the case may be) partnership are to be managed or organised, or (b) the actual managing or organising of the whole or a substantial part of those activities.” 45 149 Insert the following new Clause— ...“Power to amend list of economic crimes (1) The Secretary of State may by regulations amend Schedule (Criminal liability of bodies: economic crimes) by— (a) removing an offence from the list in the Schedule, or (b) adding an offence to that list.... (2) The power in subsection (1) is exercisable by the Scottish Ministers (and not by the Secretary of State) so far as it may be used to make provision that would be within the legislative competence...
- ‼️ Justice System
  (Variously affected)
- ‼️ Political Power
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Attributing criminal liability for economic crimes to certain bodies) committed by partnerships
The bill proposes that if a partnership commits an economic crime, the proceedings must be brought against the partnership as a whole, not individual partners. Any fines imposed will be paid from the partnership's assets.
Exemplar quote from bill: ...hanging the effect of the Schedule).” 150 Insert the following new Clause— “Offences under section (Attributing criminal liability for economic crimes to certain bodies) committed by partnerships (1) ...Proceedings for an offence alleged to have been committed by a partnership by virtue of section (Attributing criminal liability for economic crimes to certain bodies) must be brought in the name of the partnership (and not in that of any of the partners).... (2) For the purposes of such proceedings— (a) rules of court relating to the service of documents have effect as if the partnership were a body corporate, and (b) the following provisions apply as th...
- ‼️ Justice System
  This change could potentially shift the way economic crimes committed by partnerships are prosecuted, focusing on the entity as a whole rather than individual partners.
- ‼️ Economic Impact
  This could have financial implications for partnerships, as fines will be paid from partnership assets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Failure to prevent fraud): large organisations
The bill proposes specific criteria for determining whether a relevant body is considered a "large organisation" for the purposes of the "Failure to prevent fraud" section. The criteria include a turnover of more than £36 million, a balance sheet total of more than £18 million, and more than 250 employees.
Exemplar quote from bill: ...(concealing etc); (b) section 328 (arrangements); (c) section 329 (acquisition, use and possession).” 153 Insert the following new Clause— “Section (Failure to prevent fraud): large organisations (1) ...For the purposes of section (Failure to prevent fraud)(1) a relevant body is a “large organisation” only if the body satisfied two or more of the following conditions in the financial year of the body (“year P”) that precedes the year of the fraud offence—... (2) The reference in subsection (1) to a relevant body does not include a relevant body which is a parent undertaking (as to which see section (Large organisations: parent undertakings)).” (3) For a ...
- ‼️ Justice System
  This change could impact how fraud offences are prosecuted, potentially holding larger organisations to a higher standard of accountability.
- ‼️ Economic Impact
  This could have financial implications for large organisations, as they could face fines if found guilty of such offences.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Large organisations: parent undertakings)
A new clause is inserted that defines a "large organisation" as a parent undertaking that satisfies two or more conditions, including an aggregate turnover of more than £36 million net.
Exemplar quote from bill: ...under subsection (6) or (7) may make consequential amendments of section (Failure to prevent fraud: minor definitions).” 154 Insert the following new Clause— “Large organisations: parent undertakings ...(1) For the purposes of section (Failure to prevent fraud)(1) and (2) a relevant body which is a parent undertaking is a “large organisation” only if the group headed by it satisfied two or more of the following conditions in the financial year of the body that precedes the year of the fraud offence— Aggregate turnover More than £36 million net (or £43.2 million gross)... 50 (2) The aggregate figures are ascertained by aggregating the relevant figures determined in accordance with section (Section 188: large organisations) for each member of the group. (3) In relation...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section (Offences under section (Failure to prevent fraud) committed by partnerships)
A new clause is inserted that stipulates that proceedings for an offence under the section "Failure to prevent fraud" committed by a partnership must be brought in the name of the partnership, not the individual partners.
Exemplar quote from bill: ... relevant body, have a meaning corresponding to the meaning given by subsection (4).” 155 Insert the following new Clause— “Offences under section (Failure to prevent fraud) committed by partnerships ...(1) Proceedings for an offence under section (Failure to prevent fraud) alleged to have been committed by a partnership must be brought in the name of the partnership (and not in that of any of the partners).... (2) For the purposes of such proceedings— (a) rules of court relating to the service of documents have effect as if the partnership were a body corporate, and (b) the following provisions apply as th...
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Sanctions and Anti-Money Laundering Act 2018
The bill proposes amendments to the Sanctions and Anti-Money Laundering Act 2018. The amendments include the addition of a new section (17A) that allows for the imposition of monetary penalties on individuals who breach prohibitions or fail to comply with requirements imposed by or under regulations.
Exemplar quote from bill: ... that sub-paragraph insert—“; (ii) makes supplemental provision (within the meaning of section 1(6) of that Act) in connection with any prohibition or requirement mentioned in sub-paragraph (i).” (2) ...The Sanctions and Anti-Money Laundering Act 2018 is amended as follows. (3) In section 17 (enforcement), in subsection (9), in paragraph (a), after “(2)” insert “or makes supplemental provision in connection with any such prohibition or requirement”. (4) After section 17 insert— “17A Enforcement: monetary penalties (1) The provision that may be made by virtue of section 17(2) (enforcement of prohibitions or requirements) includes provision authorising a prescribed person to impose a monetary penalty on another person if satisfied, to the prescribed standard of proof, that the other person has breached a prohibition, or failed to comply with a requirement, that is imposed by or under regulations.... (2) Regulations authorising the Treasury to impose a monetary penalty in respect of a breach or failure for which the Treasury could impose a monetary penalty under Part 8 of the Policing and Crime A...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Proceeds of Crime Act 2002
The bill proposes the insertion of a new section (313A) into the Proceeds of Crime Act 2002. This new section pertains to cost orders in proceedings brought by an enforcement authority where the property in question has been obtained through economic crime.
Exemplar quote from bill: ...act or omission; “regulations” mean regulations under section 1.”” 161 Insert the following new Clause— Civil recovery of proceeds of crime: costs of proceedings “Civil recovery: costs of proceedings ...After section 313 of the Proceeds of Crime Act 2002 insert— “313A Costs orders (1) This section applies to proceedings brought by an enforcement authority under Part 5 of the Proceeds of Crime Act 2002 where the property in respect of which the proceedings have been brought has been obtained through economic crime.... 56 (2) The court may not make an order that any costs of proceedings relating to a case to which this section applies (including appeal proceedings) are payable by an enforcement authority to a respo...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Clause 191
The bill proposes the insertion of a new clause that allows the Secretary of State, the Scottish Ministers, and the Department of Justice in Northern Ireland to make transitional or saving provisions in connection with the coming into force of any provision of this Act.
Exemplar quote from bill: ...ubsection (5) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).” After Clause 191 172 Insert the following new Clause— ...“Transitional provision (1) The Secretary of State may by regulations made by statutory instrument make transitional or saving provision in connection with the coming into force of any provision of this Act, other than a provision mentioned in section (Commencement)(4) or (5). (2) The Scottish Ministers may by regulations make transitional or saving provision in connection with the coming into force of a provision mentioned in section (Commencement)(4). (3) The Department of Justice in Northern Ireland may by order make transitional or saving provision in connection with the coming into force of a provision mentioned in section (Commencement)(5).... (4) The power to make regulations under subsection (1) or (2), and the power to make orders under subsection (3), includes power to make different provision for— (a) different purposes, and 59 (b) wh...
- ‼️ Political Power
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790E, 790EA, 790EB, 790EC
The bill introduces new duties for companies to find out about changes in Persons with Significant Control (PSC) information, to find out about persons ceasing to be PSCs, to notify failure to comply with notices, and to notify of late compliance with notices.
Exemplar quote from bill: ...subsection (7) are subject to negative resolution procedure. (9) In this section a reference to knowing the identity of a person includes knowing information from which that person can be identified. ...790E Company’s duty to find out about changes in PSC information... (1) This section applies if a company— (a) knows or has cause to believe that there has been a change in the required particulars of a registrable person or a registrable relevant legal entity in rel...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 790F
The bill substitutes the existing subsection (1) in section 790F, making it an offence for a company and every officer of the company who fails, without reasonable excuse, to comply with a duty under several sections to take steps or give a notice.
Exemplar quote from bill: ...t subsequently complies. (2) The notice must be given within the period of 14 days beginning with the day on which the person complied with the notice under section 790D, 790DA, 790E or 790EA.” 64 11 ...In section 790F (failure by company to comply with information duties), for subsection (1) substitute— “(1) If a company fails, without reasonable excuse, to comply with a duty under section 790CB, 790D, 790DA(3), 790E, 790EA, 790EB or 790EC to take steps or give a notice, an offence is committed by— (a) the company, and (b) every officer of the company who is in default.”... 12 For sections 790G and 790H substitute— “790G Duty to notify company on becoming PSC (1) This section applies to a person if— (a) the person knows that they are a registrable person or a registrabl...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Sections 790G and 790H
The bill substitutes sections 790G and 790H, introducing new duties for persons to notify the company on becoming a PSC and to notify the company of changes in PSC information.
Exemplar quote from bill: ...der section 790CB, 790D, 790DA(3), 790E, 790EA, 790EB or 790EC to take steps or give a notice, an offence is committed by— (a) the company, and (b) every officer of the company who is in default.” 12 ...For sections 790G and 790H substitute— “790G Duty to notify company on becoming PSC... (1) This section applies to a person if— (a) the person knows that they are a registrable person or a registrable relevant legal entity in relation to a company, (b) the material in the register that...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790HA
The bill introduces a new duty for persons to notify the company of ceasing to be a PSC.
Exemplar quote from bill: ...90LC(1) or 790LCA(1). 65 (3) The person must comply with the duty in subsection (2) before the end of the period of one month beginning with the day on which the conditions in subsection (1) are met. ...790HA Duty to notify company of ceasing to be a PSC... (1) This section applies to a person if— (a) the person knows that they have ceased to be a registrable person or a registrable relevant legal entity in relation to a company, (b) the material in the...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Section 790I
The bill substitutes the existing text in section 790I, changing the enforcement of disclosure requirements to apply to notices under several sections and duties under several other sections.
Exemplar quote from bill: ...e person so ceased. (3) The person must comply with the duty in subsection (2) before the end of the period of one month beginning with the day on which the conditions in subsection (1) are met.” 12A ...In section 790I (enforcement of disclosure requirements), for the words from “a notice” to the end substitute “— (a) a notice under section 790D, 790DA, 790E or 790EA, or (b) a duty under section 790G, 790H or 790HA.”... 13 In section 790J (power to make exemptions)— (a) in subsection (2)(a), for “790D(2) or 790E” substitute “790D, 790E or 790EA”; (b) in subsection (2)(c), for “790D(5)” substitute “790DA”; (c) in sub...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 790J
The bill amends section 790J, changing the power to make exemptions to apply to several other sections.
Exemplar quote from bill: ...rcement of disclosure requirements), for the words from “a notice” to the end substitute “— (a) a notice under section 790D, 790DA, 790E or 790EA, or (b) a duty under section 790G, 790H or 790HA.” 13 ...In section 790J (power to make exemptions)— (a) in subsection (2)(a), for “790D(2) or 790E” substitute “790D, 790E or 790EA”; (b) in subsection (2)(c), for “790D(5)” substitute “790DA”; (c) in subsection (2)(d), for “and 790H” substitute “, 790H and 790HA”; (d) in subsection (2)(e) for “section 790M” substitute “any of sections 12A, 790LA, 790LBA, 790LC, 790LCA, 790LCB, 790LD, 790LDA”.”... 179 Page 185, line 30, at end insert “of persons with significant control” 180 Page 185, leave out line 31 to line 10 on page 186 and insert— “790LA Duty to notify registrar of confirmed persons with...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LA
The bill introduces a new duty for companies to notify the registrar of confirmed persons with significant control.
Exemplar quote from bill: ..., 790LA, 790LBA, 790LC, 790LCA, 790LCB, 790LD, 790LDA”.” 179 Page 185, line 30, at end insert “of persons with significant control” 180 Page 185, leave out line 31 to line 10 on page 186 and insert— “...790LA Duty to notify registrar of confirmed persons with significant control... (1) A company must give a notice to the registrar if it has had confirmation of— (a) a person’s status as a registrable person or a registrable relevant legal entity in relation to the company, and (...
- ‼️ Corporate Transparency
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LBA
The bill introduces a new duty for companies to notify the registrar of unconfirmed persons with significant control. This must be done within 14 days of the company first knowing or having cause to believe that such a person has become a registrable person or a registrable relevant legal entity in relation to the company.
Exemplar quote from bill: ...give a notice under this section (or the receipt of that notice by the registrar).” 181 Page 186, line 12, leave out “(a)” 182 Page 186, line 15, leave out “(a)” 183 Page 186, line 27, at end insert— ...“790LBA Duty to notify registrar of unconfirmed persons with significant control (1) A company must give a notice to the registrar if— (a) it knows or has cause to believe that a person has become a registrable person or a registrable relevant legal entity in relation to the company, but (b) it has not yet had confirmation as mentioned in section 790LA(1). (2) The notice must state that fact. (3) A notice under subsection (1) must be given within the period of 14 days beginning with the day on which the company first knows or has cause to believe that the person has become a registrable person or a registrable relevant legal entity in relation to the company.... (4) Nothing in this section requires a company, on its incorporation, to give a notice in relation to a person included in the statement of initial significant control under section 12A.” 184 Page 18...
- ‼️ Economic Impact
  This change could potentially increase administrative burdens on companies, but it also enhances transparency around who has significant control over companies.
- ‼️ Justice System
  This change could potentially increase the number of cases where companies fail to comply with their notification duties, leading to more enforcement actions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LCA
The bill introduces a new duty for companies to notify the registrar of pre-incorporation changes in required particulars of a proposed person with significant control (PSC).
Exemplar quote from bill: ...ce under subsection (1) must be given within the period of 14 days beginning with the day on which the company had confirmation as mentioned in that subsection.” 187 Page 186, line 42, at end insert— ...“790LCA Duty to notify of pre-incorporation changes in required particulars (1) A company must give a notice to the registrar if it— (a) has had confirmation that there was a pre-incorporation change in the required particulars of a proposed PSC (see section 790K), and (b) has had confirmation of how the required particulars have changed and the date on which they changed.... (2) But a company is not required to give a notice under subsection (1) in respect of a person if it has given a notice under section 790LD in respect of the person. (3) A notice under subsection (1)...
- ‼️ Economic Impact
  This change could potentially increase administrative burdens on companies, but it also enhances transparency around changes in control over companies before they are incorporated.
- ‼️ Justice System
  This change could potentially increase the number of cases where companies fail to comply with their notification duties, leading to more enforcement actions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LCB
The bill introduces a new duty for companies to notify the registrar when a person ceases to have significant control over the company.
Exemplar quote from bill: ... entity in relation to the company.” 188 Page 186, line 42, at end insert— “Duty to notify registrar of person ceasing to be person with significant control etc” 189 Page 186, line 42, at end insert— ...“790LCB Duty to notify registrar when person ceases to have significant control (1) A company must give a notice to the registrar if it— (a) has had confirmation that a person has ceased to be a registrable person or a registrable relevant legal entity in relation to it, and (b) has had confirmation of the date on which the person so ceased.... (2) A notice under subsection (1) must state— (a) the person’s name and service address, and (b) the date on which the person ceased to be a registrable person or a registrable relevant legal entity ...
- ‼️ Economic Impact
  This change could potentially increase administrative burdens on companies, but it also enhances transparency around changes in control over companies.
- ‼️ Justice System
  This change could potentially increase the number of cases where companies fail to comply with their notification duties, leading to more enforcement actions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 790LDA
The bill introduces a new duty for companies to notify the registrar if the company ceases to have any persons with significant control.
Exemplar quote from bill: ...” 192 Page 187, leave out lines 6 to 17 193 Page 187, line 19, leave out “becomes aware as” and insert “has the knowledge” 194 Page 187, leave out lines 21 to 24 195 Page 187, line 24, at end insert— ...“790LDA Duty to notify registrar if company ceases to have persons with significant control (1) A company must give a notice to the registrar if it knows or has cause to believe that— (a) there has at some time been a person who is a registrable person or registrable relevant legal entity in relation to the company, and (b) there has ceased to be anyone who is a registrable person or registrable relevant legal entity in relation to the company.... (2) A notice under subsection (1) must — (a) state that the company has that knowledge or cause to believe, and (b) specify the date on which the company first had that knowledge or cause to believe....
- ‼️ Economic Impact
  This change could potentially increase administrative burdens on companies, but it also enhances transparency around changes in control over companies.
- ‼️ Justice System
  This change could potentially increase the number of cases where companies fail to comply with their notification duties, leading to more enforcement actions.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Duty to Deliver Information About Changes in Beneficiaries
The bill introduces a new duty for entities to deliver information about changes in beneficiaries. This includes updating the existing duty in Section 7 of the Economic Crime (Transparency and Enforcement) Act 2022.
Exemplar quote from bill: ... maximum (or both).”” 203 Page 190, line 14, leave out “or 790LC” and insert “, 790LBA, 790LC, 790LCA, 790LCB, 790LD or 790LDA” 71 After Schedule 5 204 Insert the following new Schedule— “SCHEDULE 5A ...DUTY TO DELIVER INFORMATION ABOUT CHANGES IN BENEFICIARIES 1 The Economic Crime (Transparency and Enforcement) Act 2022 is amended as follows. 2 (1) Section 7 (updating duty) is amended as follows. (2) In subsection (1)(a) and (b), for “statement and information mentioned” substitute “statements and information mentioned”.... (3) In subsection (3)— (a) omit the “and” at the end of paragraph (a); (b) at the end of paragraph (b) insert “, and (c) the statement in row 1 of the table set out in subsection (4A), or the stateme...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: substitution
Duty to Take Steps to Obtain Information
The bill replaces the existing duty in Section 12 of the Economic Crime (Transparency and Enforcement) Act 2022. It now requires overseas entities to take reasonable steps to obtain all necessary information before making an application for registration.
Exemplar quote from bill: ...rson so became or so ceased. (8A) Any other information required by subsection (1)(b) must relate to the state of affairs as at the time of the application for removal.” 4 For section 12 substitute— “...12 Duty to take steps to obtain information (1) Before making an application for registration under section 4(1) an overseas entity must take reasonable steps to obtain all of the information that it is required to deliver to the registrar under that section if it is able to obtain it.... (2) Before complying with the updating duty under section 7 an overseas entity must take reasonable steps to obtain all of the information that it is required to deliver to the registrar under that s...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 17A
The Secretary of State is given the power to create regulations that provide exceptions to the requirement for overseas entities to deliver certain types of information. However, the Secretary of State must consult with the Scottish Ministers or the Department of Finance in Northern Ireland before making these regulations if they would fall within the legislative competence of the Scottish Parliament or the Northern Ireland Assembly, respectively.
Exemplar quote from bill: ...1)(c) or 42(1)(c)(i), a reference to a person who has ceased to be a registrable beneficial owner.” 6 After section 17 insert— “17A Exceptions to duty to provide change of beneficiary information (1) ...The Secretary of State may by regulations provide for exceptions to the requirement to deliver information by virtue of section 7(3)(c) or (4)(c) or 9(3)(c) or (4)(c).... (2) The Secretary of State must consult the Scottish Ministers before making regulations under subsection (1) that contain provision that would be within the legislative competence of the Scottish Pa...
- ‼️ Political Power
  This change gives the Secretary of State significant power to create exceptions to the information delivery requirements for overseas entities. However, it also requires consultation with Scottish and Northern Irish authorities, potentially balancing this power and ensuring that the interests of these regions are considered.
- ‼️ Economic Impact
  This change could have economic implications for overseas entities, as it could potentially reduce their administrative burden if exceptions are made to the information they are required to deliver.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Schedule 5A
A new schedule, Schedule 5A, is inserted into the Act. This schedule pertains to the provision of further information for transitional cases involving overseas entities.
Exemplar quote from bill: ... in beneficiaries) to the Economic Crime and Corporate Transparency Act 2023 (duty to deliver information about changes in beneficiaries).” 8 In section 44 (interpretation), omit subsection (2).” 205 ...Insert the following new Schedule— “SCHEDULE 5A OVERSEAS ENTITIES: FURTHER INFORMATION FOR TRANSITIONAL CASES... 1 The Economic Crime (Transparency and Enforcement) Act 2022 is amended as follows. 2 In section 16 (verification of registrable beneficial owners and managing officers), in subsection (1), after par...
- ‼️ Economic Impact
  This change could have economic implications for overseas entities, as it introduces additional information requirements for these entities in transitional cases.
- ‼️ Political Power
  This change could potentially increase the power of the government by providing it with more information about overseas entities.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Overseas Entity Reporting Requirements
The bill proposes new reporting requirements for overseas entities. These entities must provide information about each trust for which a trustee was a registrable beneficial owner at the end of the relevant period. They must also state whether they believe there is required information about the trust that they have not been able to obtain.
Exemplar quote from bill: ...evant period, was a registrable beneficial owner of the entity by virtue of being a trustee, or (b) a statement that the entity has reasonable cause to believe that there is at least one such person. ...(2) Where a statement is delivered under sub-paragraph (1)(b) the overseas entity must also deliver to the registrar — (a) the required information about each trust (a “relevant trust”) by virtue of which a trustee was a registrable beneficial owner of the entity at the end of the relevant period, (b) in relation to each relevant trust, a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain, and (c) in relation to each relevant trust, the statement in row 1 of the table set out in sub-paragraph (3), or the statement and information listed in row 2 of that table.... (3) This is the table referred to in sub-paragraph (2)(c)— 79 (4) Statements required by this paragraph to be delivered to the registrar must relate to the time when they are delivered. (5) Informati...
- ‼️ Economic Impact
  This change could potentially increase transparency and accountability of overseas entities, which could have economic implications.
- ‼️ Justice System
  This change could potentially impact the justice system by providing more information for investigations into economic crime.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: amendment
Recovery of Cryptoassets
The bill proposes amendments to the sections on the recovery of cryptoassets, specifically regarding searches, seizure and detention, and freezing orders.
Exemplar quote from bill: ...subsection (2), for “131A” substitute “131ZB(3), 131A(3) or 131AA(2)” 216 Page 209, line 38, leave out sub-paragraph (6) 217 Page 210, line 14, leave out “a court” and insert “the sheriff” Schedule 7 ...218 Page 220, leave out line 3 and insert— “RECOVERY OF CRYPTOASSETS: SEARCHES, SEIZURE AND DETENTION” 219 Page 230, leave out line 17 and insert— “RECOVERY OF CRYPTOASSETS: FREEZING ORDERS”... 220 Page 237, leave out lines 24 to 26 and insert— “(10) The Secretary of State may not make regulations under subsection (7) unless the Secretary of State has— (a) consulted the Scottish Ministers a...
- ‼️ Economic Impact
  This change could potentially impact the economic landscape by providing more tools for the recovery of cryptoassets.
- ‼️ Justice System
  This change could potentially impact the justice system by providing more tools for the recovery of cryptoassets.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 453C of the Proceeds of Crime Act 2002
The bill proposes to insert new provisions into Section 453C of the Proceeds of Crime Act 2002, which deals with obstruction offences in relation to immigration officers. The new provisions grant powers to search for, seize, and detain cryptoasset-related items.
Exemplar quote from bill: ...n of the reasons for doing so).” 221 Page 245, line 3, leave out “been made” and insert “effect” 222 Page 263, line 36, leave out “been made” and insert “effect” 223 Page 270, line 25, at end insert— ...“13A In section 453C of the Proceeds of Crime Act 2002 (obstruction offence in relation to immigration officers), in subsection (3), after paragraph (g) insert— “(ga) section 303Z21 (powers to search for cryptoasset-related items) as applied by section 24 of the UK Borders Act 2007 (exercise of civil recovery powers by immigration officers); (gb) section 303Z26 as so applied (powers to seize cryptoasset-related items); (gc) section 303Z27 as so applied (powers to detain cryptoasset-related items);”.”...224 Page 271, line 10, at end insert— “Amendments to the UK Borders Act 2007 16 (1) Section 24 of the UK Borders Act 2007 (exercise of civil recovery powers by immigration officers) is amended as foll...
- ‼️ National Security
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵🔵 High
- Type: insertion
UK Borders Act 2007
The bill proposes amendments to Section 24 of the UK Borders Act 2007, which pertains to the exercise of civil recovery powers by immigration officers. The amendments involve the substitution and insertion of various sections and chapters, expanding the scope of powers.
Exemplar quote from bill: ...r for the forfeiture of cryptoassets made under paragraph 10Z7CA or 10Z7CE of that Schedule.” (4) In subsection (5)(d)(i)— (a) after “(a)” insert “, (ba)”; (b) for “or (c)” substitute “, (c) or (da)”....“Amendments to the UK Borders Act 2007 16 (1) Section 24 of the UK Borders Act 2007 (exercise of civil recovery powers by immigration officers) is amended as follows. (2) In subsection (1), for “3B” substitute “3F”. (3) In subsection (2)(a), for “Chapter 3B” substitute “Chapters 3B to 3F”. (4) In subsection (2)(c), after “303Z2(4))” insert “, Chapter 3C (see section 303Z20(4)), Chapter 3D (see section 303Z36(8)) and Chapter 3E (see section 303Z41(9))”. (5) In subsection (2)(d), after “303G” insert “(including as section 303G is applied by section 303Z25)”. (6) In subsection (2)(e), after “303I” insert “(including as sections 303H and 303I are applied by section 303Z25)”. (7) In subsection (2)(f)— (a) in the opening words, for “or 303L(1)” substitute “, 303L(1), 303Z28(1) or (4), 303Z32(1) or (4) or 303Z57(3) or (5)”; (b) in sub-paragraph (ii), for “or (as the case may be) 303O” substitute “, 303O, 303Z41 or (as the case may be) 303Z60”. (8) In subsection (2)(g), for “or 303Z14” substitute “, 303Z14, 303Z41 or 303Z60”. (9) In subsection (2)(h), for “or 303Z18” substitute “, 303Z18, 303Z52 or 303Z64”.”...5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Schedule 9 — Cryptoassets: terrorism Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001 298 SCHEDULE 9 Section 17...
- ‼️ National Security
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Registered offices
The bill introduces a requirement for companies to have an appropriate address for their registered office.
Exemplar quote from bill: ...25 Use of name that a company has been required to change 26 Use of name that another company has been required to change 27 Use of names: exceptions based on national security etc Registered offices ...28 Registered office: appropriate address... Registered email addresses 29 Registered email addresses etc 30 Registered email addresses: transitional provision Disqualification in relation to companies 31 Disqualification for persistent breache...
- ‼️ Economic Impact
  This change could impact companies that need to change their registered office address to comply with the new requirement, potentially incurring costs.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Registered email addresses
The bill introduces a requirement for companies to have registered email addresses, along with a transitional provision for the implementation of this requirement.
Exemplar quote from bill: ...ame that another company has been required to change 27 Use of names: exceptions based on national security etc Registered offices 28 Registered office: appropriate address Registered email addresses ...29 Registered email addresses etc 30 Registered email addresses: transitional provision... Disqualification in relation to companies 31 Disqualification for persistent breaches of companies legislation: GB 32 Disqualification for persistent breaches of companies legislation: NI 33 Disquali...
- ‼️ Economic Impact
  This change could impact companies that need to establish registered email addresses to comply with the new requirement, potentially incurring costs.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 57A of the Companies Act 2006
The bill proposes a new provision that prohibits the registration of a company under a name that, in the opinion of the Secretary of State, consists of or includes computer code.
Exemplar quote from bill: ...ion with foreign governments etc);”. 10 Names containing computer code (1) The Companies Act 2006 is amended as follows. (2) After section 57 insert— “Computer code 57A Names containing computer code ...A company must not be registered under this Act by a name that, in the opinion of the Secretary of State, consists of or includes computer code....” (3) In section 1047 (registered name of overseas company), in subsection (4), after paragraph (ba) insert— “(bb) section 57A (names containing computer code);”. 11 Prohibition on re-registering name...
- ‼️ Economic Impact
  This change could potentially reduce economic crime by making it harder for companies to use deceptive names that include computer code.
- ‼️ Justice System
  This change could potentially increase the workload of the Secretary of State, who will need to assess the potential implications of company name registrations.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 1140 of the Companies Act 2006
The bill proposes an insertion to section 1140 of the Companies Act 2006 to include a registrable person or a registrable relevant legal entity in relation to a company in the list of individuals on whom documents can be served.
Exemplar quote from bill: ...103 of this Act) insert “or 1097C”; (b) after “service address” (inserted by section 103 of this Act) insert “or principal office address”. 105 Service of documents on people with significant control ...In section 1140 of the Companies Act 2006 (service of documents on directors, secretaries and others), in subsection (2), after paragraph (a) insert— “(aa) a person who is a registrable person or a registrable relevant legal entity in relation to a company (within the meanings given by section 790C);”.... PART 2 PARTNERSHIPS CHAPTER 1 LIMITED PARTNERSHIPS ETC. Meaning of “limited partnership” 106 Meaning of “limited partnership” (1) The Limited Partnerships Act 1907 is amended in accordance with subse...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 4 (definition and constitution of limited partnership)
The bill proposes to amend Section 4 by substituting "body corporate" with "legal entity".
Exemplar quote from bill: ... of the definition of “managing officer” in subsection (1), “director” and “shadow director” have the same meanings as in the Companies Acts (see sections 250 and 251 of the Companies Act 2006).” (3) ...In section 4 (definition and constitution of limited partnership), in subsection (4), for “body corporate” substitute “legal entity”.... (4) In section 8A (application for registration)— (a) in subsection (1)(c), after “each” insert “proposed”; (b) in subsections (2)(b) and (c), for “name of each” substitute “required information abou...
- ‼️ Economic Impact
  This change could potentially affect how limited partnerships are defined and constituted, with potential economic implications.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 8I of the Limited Partnerships Act 1907
The bill proposes to allow general partners in a limited partnership to change the registered email address by giving notice to the registrar. The change would take effect upon the notice being registered by the registrar.
Exemplar quote from bill: ...in default” for the purposes of this section if they authorise or permit, participate in, or fail to take all reasonable steps to prevent, the contravention. 8I Change of registered email address (1) ...A limited partnership’s registered email address can be changed by the general partners giving notice to the registrar.... (2) The notice must include a statement that the new address is an appropriate email address within the meaning given by section 8H(2). (3) The change takes effect upon the notice being registered by...
- ‼️ Political Power
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022
The bill proposes to amend the Economic Crime (Transparency and Enforcement) Act 2022 to require the name and contact details of an individual who is at least 16 years old and is willing to be contacted about the officer, if the officer is under the age of 16 years old.
Exemplar quote from bill: ... age limits (1) Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022 (applications: required information) is amended as follows. (2) In paragraph 6(1), after paragraph (f) insert— ...“(g) if the officer is under the age of 16 years old, the name and contact details of an individual who is at least 16 years old and is willing to be contacted about the officer.”... (3) In paragraph 7(1), for paragraph (g) substitute— “(g) the name and contact details of an individual who is at least 16 years old and is willing to be contacted about the officer.” 158 Registrable...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 790LH
The bill introduces a new provision allowing a person to request a company to confirm whether all of the information that it is required to deliver to the registrar under this Chapter has been delivered.
Exemplar quote from bill: ...ctifying the position. (5) Nothing in this section affects a person’s rights under section 1094 or 1096 (rectification of register). 790LH Information as to whether information has been delivered (1) ...A person may request a company to tell the person whether all of the information that it is required to deliver to the registrar under this Chapter has been delivered.... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 3 — Register of people with significant control 209 (2) The company mus...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 215 (seized money)
The bill proposes to expand the definition of "relevant financial institution" to include not only banks and building societies, but also electronic money institutions and payment institutions.
Exemplar quote from bill: ...d Wales 225 ““payment institution” means an authorised payment institution or a small payment institution (each as defined in regulation 2 of the Payment Services Regulations 2017 (S.I. 2017/752));”; ...““relevant financial institution” means a bank, a building society, an electronic money institution or a payment institution;”.... (7) For the heading substitute “Money”. 12 After section 67 insert— “67ZA Cryptoassets (1) This section applies to cryptoassets which— (a) are held by a person, and (b) are held in a crypto wallet ad...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 24 of the UK Borders Act 2007
The bill proposes amendments to Section 24 of the UK Borders Act 2007, changing references from "3B" to "3F" and adding references to additional chapters in subsection (2)(c).
Exemplar quote from bill: ... (c)” substitute “, (c) or (da)”. Amendments to the UK Borders Act 2007 17 (1) Section 24 of the UK Borders Act 2007 (exercise of civil recovery powers by immigration officers) is amended as follows. ...(2) In subsection (1), for “3B” substitute “3F”. (3) In subsection (2)(a), for “Chapter 3B” substitute “Chapters 3B to 3F”. (4) In subsection (2)(c), after “303Z2(4))” insert “, Chapter 3C (see section 303Z20(4)), Chapter 3D (see section 303Z36(8)) and Chapter 3E (see section 303Z41(9))”.... (5) In subsection (2)(d), after “303G” insert “(including as section 303G is applied by section 303Z25)”. (6) In subsection (2)(e), after “303I” insert “(including as sections 303H and 303I are appli...
- ‼️ National Security
  This change could potentially affect the powers of immigration officers in relation to the exercise of civil recovery powers.
- ‼️ Justice System
  This change could potentially affect the legal processes related to the enforcement of the UK Borders Act 2007.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Clause 1
The bill proposes an amendment to Clause 1, changing the language to ensure that the information contained in the register is accurate and complete.
Exemplar quote from bill: ... Date: 10 July 2023 5:31 pm 5.0.04 Economic Crime and Corporate Transparency Bill LORDS AMENDMENTS [The page and line references are to HL Bill 96, the bill as first printed for the Lords] Clause 1 1 ...Page 2, line 2, leave out from “that” to end of line 3 and insert “information contained in the register is accurate and that the register contains everything it ought to contain.”... 2 Page 2, line 5, leave out from “to” to “a” on line 6 and insert “ensure that records kept by the registrar do not create” 3 Page 2, leave out lines 8 to 10 and insert— “Objective 4 is to prevent c...
- ‼️ Corporate Transparency
  This change could potentially increase corporate transparency by ensuring that the register contains accurate and complete information.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 11A
The bill provides exceptions to the new offence introduced in section 11A. The offence does not apply if an exception has been created by virtue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018, or if the action was done under the authority of a licence issued by virtue of section 15(3A) of that Act.
Exemplar quote from bill: ...r disqualification sanctions to act as a director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company (but see paragraph (2))....“(2) Paragraph (1) does not apply— (a) to the extent that an exception from paragraph (1) has been created by virtue of section 15(3A) of the Sanctions and Anti-Money Laundering Act 2018, or (b) to anything done under the authority of a licence issued by virtue of section 15(3A) of that Act.... (3) It is a defence for a person charged with an offence under this Article to prove that they did not know and could not reasonably have been expected to know that they were subject to director disq...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 11A
The bill provides a defence for a person charged with the new offence introduced in section 11A. The person can defend themselves by proving that they did not know and could not reasonably have been expected to know that they were subject to director disqualification sanctions at the time they engaged in the conduct.
Exemplar quote from bill: ...as been created by virtue of section 15(3A) of the Sanctions and AntiMoney Laundering Act 2018, or (b) to anything done under the authority of a licence issued by virtue of section 15(3A) of that Act....“(3) It is a defence for a person charged with an offence under this section to prove that they did not know and could not reasonably have been expected to know that they were subject to director disqualification sanctions at the time at which they engaged in that conduct.... (4) In this section “person who is subject to director disqualification sanctions” means a person who under regulations under section 1 of the Sanctions and Anti-Money Laundering Act 2018 is a person...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: insertion
Companies Act 2006
The bill proposes to amend the Companies Act 2006 to include a provision that if an individual's name is entered in a company's register of members but is not in the required form, it does not affect the person becoming a member of the company.
Exemplar quote from bill: ...tion “relevant company” means each company given notice under section 245(2)(b).” 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 35 Register of members 46...“Register of members: information to be included and powers to obtain it (1) The Companies Act 2006 is amended as follows. (2) In section 112 (the members of a company), at the end insert— “(4) Where an individual’s name is entered in a company’s register of members but is not in the form required by section 113A, that does not affect the person becoming a member of the company by virtue of subsection (2).”... (3) For the italic heading “General” at the beginning of Chapter 2 of Part 8 substitute “Duty to keep register”. (4) In section 113 (register of members)— (a) for subsection (2) substitute— “(2) Ther...
- ‼️ Justice System
  This change could potentially increase flexibility in the process of becoming a member of a company, while still maintaining the requirement for proper documentation.
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Company's duty to keep index of members
The bill proposes amendments to the company's duty to keep an index of members. It renumbers and moves the relevant section, and changes the requirements for what information should be included in the index.
Exemplar quote from bill: ...months or a fine not exceeding the statutory maximum (or both) and, for continued contravention, a daily default fine not exceeding one-fifth of the statutory maximum. Duty to keep index of members”. ...(6) Section 115 (index of members)— (a) is moved to after the italic heading “Duty to keep index of members” inserted by subsection (5) of this section, and (b) is renumbered section 113J. (7) In that section as renumbered— (a) in subsection (1), for “names of the members of the company” substitute “names or titles of the members of the company (to be known as “the index of members’ names”)”; (b) for subsection (3) substitute— “(3) The index must include the same details of a person’s name or title as are entered in the register of members.”... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 39 (8) Before section 114 insert— “Inspection etc of register and index of members”. (9) Before section...
- ‼️ Corporate Transparency
  (Variously affected)
- 🟢 Flagged for scrutiny
- Impact: 🔵🔵 Moderate
- Type: amendment
Bankruptcy (Scotland) Act 2016
This change amends the Bankruptcy (Scotland) Act 2016 to specify that the debtor's estate is being sequestrated after sequestration has been awarded.
Exemplar quote from bill: ...ject to the affirmative procedure (see Part 2 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)).” 132 Sequestration of limited partnerships: concurrent winding up proceedings ...(1) The Bankruptcy (Scotland) Act 2016 is amended as follows. (2) In section 17 (concurrent proceedings for sequestration or analogous remedy)— (a) in subsection (2)(b), after “awarded” insert “and the debtor’s estate is being sequestrated”;... (b) in subsection (2)(c)— (i) omit “has been made”; (ii) after “estate” insert “is pending”; (c) in subsection (2)(d), after “application” insert “and the debtor’s estate is being sequestrated”; (d) ...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 80 (change of name: registration and issue of new certificate of incorporation)
The amendment modifies the conditions under which a company can change its name. The registrar must now be satisfied that the new name complies with the requirements of the Companies Acts and any relevant requirements of the company's articles. The registrar also has the power to determine a new name for a company under section 76C or 76D.
Exemplar quote from bill: ...der this section, the registrar must— (a) give the company notice of the determination, and (b) place a note of the determination in the register.” 21 Sections 19 and 20: consequential amendments (1) ...In section 80 (change of name: registration and issue of new certificate of incorporation), for subsections (1) and (2) substitute— “(1) This section applies where— (a) the registrar receives notice of a change of a company’s name and is satisfied— (i) that the new name complies with the requirements of this Part, and (ii) that the requirements of the Companies Acts, and any relevant requirements of the company’s articles, with respect to a change of name are complied with, or (b) the registrar determines a new name for a company under section 76C or 76D. (2) The registrar must enter the new name on the register in place of the former name.”... (2) In section 1047 (registered name of overseas company), in subsection (4), after 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 15 paragraph (h) (inse...
- ‼️ Economic Impact
  This change could potentially impact businesses that wish to change their name, as they now have to meet more stringent requirements. This could affect their branding and marketing strategies.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1196A of the Companies Act 2006
The bill introduces a new provision that prohibits a person from conducting business in the UK under a name that could falsely suggest a connection with a foreign government, an agency or authority of a foreign government, or an international organization with multiple country or territory members.
Exemplar quote from bill: ...t by a large number of persons in pursuit of a common purpose.” Business names 23 Use of name suggesting connection with foreign governments etc In the Companies Act 2006, after section 1196 insert— “...1196A Names suggesting connection with foreign governments etc (1) A person must not carry on business in the United Kingdom under a name that would be likely to give the false impression that the business is connected with— (a) a foreign government or an agency or authority of a foreign government, or (b) an international organisation whose members include two or more countries or territories (or their governments).... 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 16 (2) A person who contravenes this section commits an offence. (3) Where an offence under this section i...
- ‼️ Economic Impact
  This change could impact businesses that have names suggesting a connection with foreign governments or international organizations. They may need to change their names to comply with this provision, which could affect their branding and marketing strategies.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 88A of the Companies Act 2006
The bill introduces a new requirement for companies to maintain a registered email address at all times. Failure to comply with this requirement constitutes an offence, with the company and its officers liable to fines upon conviction.
Exemplar quote from bill: ...5 10 15 20 25 30 35 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 20 (5) After section 88 insert— “Registered email address 88A Duty to maintain a registered email address (1) ...A company must ensure that its registered email address is at all times an appropriate email address.... (2) An email address is an “appropriate email address” if, in the ordinary course of events, emails sent to it by the registrar would be expected to come to the attention of a person acting on behalf...
- ‼️ Economic Impact
  This change could potentially increase administrative costs for companies, as they will need to ensure they maintain a registered email address at all times. It could also lead to increased legal costs if companies are found to be in breach of this requirement.
- ‼️ Justice System
  This change could potentially increase the workload of the justice system, as more cases of non-compliance could be brought before the courts.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098A of the Economic Crime and Corporate Transparency Bill
The bill introduces a new definition for "authorised corporate service provider", which refers to a person whose application to become such a provider has been granted by the registrar.
Exemplar quote from bill: ...lations under section 1098H (authorised corporate service providers);”. (4) After section 1098 insert— “Authorised corporate service providers 1098A Meaning of “authorised corporate service provider” ...In this Act “authorised corporate service provider” means a person— (a) whose application to the registrar to become an authorised corporate service provider for the purposes of this Act has been granted (see section 1098B),... (b) who has not since ceased to be an authorised corporate service provider by virtue of section 1098F, and (c) whose status as an authorised corporate service provider is not for the time being susp...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098B of the Economic Crime and Corporate Transparency Bill
The bill introduces a new provision that allows a person to apply to become an authorised corporate service provider if they are a relevant person as defined by the Money Laundering Regulations.
Exemplar quote from bill: ... and (c) whose status as an authorised corporate service provider is not for the time being suspended by virtue of section 1098G. 1098B Application to become authorised corporate service provider (1) ...A person may apply to the registrar to become an authorised corporate service provider for the purposes of this Act if— (a) the person is a relevant person as defined by regulation 8(1) of the Money Laundering Regulations,... (b) in the case of an individual, their identity is verified (see section 1110A), and (c) the person meets any other requirements imposed by regulations made by the Secretary of State for the purpose...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 1098E of the Economic Crime and Corporate Transparency Bill
The bill introduces a new requirement for authorised corporate service providers to notify the registrar of any changes in their supervisory authority within 14 days of the change.
Exemplar quote from bill: ...ership, a member of the partnership 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 59 1098E Updating duties of authorised corporate service providers (1) ...A person who is an authorised corporate service provider must notify the registrar of any change in its supervisory authority or authorities for the purposes of the Money Laundering Regulations within the period of 14 days beginning with the date on which the change occurs.... (2) Where the change is the result of an agreement under regulation 7(2) of the Money Laundering Regulations, for the purposes of this section the change is not to be treated as having occurred until...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 1126 of the Companies Act 2006
The bill proposes to amend section 1126 of the Companies Act 2006 to include section 1112A (false statement offences) in the list of offences that require consent for prosecution.
Exemplar quote from bill: ... months or a fine not exceeding the statutory maximum (or both); (iii) in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both).” ...(4) In section 1126 (consents required for certain prosecutions)— (a) in subsection (1), for the entry relating to section 1112 substitute— “section 1112 or 1112A of this Act (false statement offences);”; (b) in subsections (2)(a)(iv) and (3)(a)(iv), after “1112” insert “or 1112A”.... 100 False statement offences: national security etc defence (1) The Companies Act 2006 is amended as follows. (2) In section 1059A (scheme of Part 35), in subsection (2), at the appropriate place ins...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 28 of the Economic Crime (Transparency and Enforcement) Act 2022
The amendment allows the registrar to remove any document or material from the register that is either accepted under section 1073 of the Companies Act 2006 or is unnecessary as defined by section 1074 of the same Act. The registrar can exercise this power either on their own motion or on an application made in accordance with regulations under section 28A(2). The Secretary of State may limit the registrar's power to remove material from the register following an application to material of a description specified in the regulations.
Exemplar quote from bill: ... Bill Part 3 — Register of overseas entities 154 165 Administrative removal of material from register (1) In the Economic Crime (Transparency and Enforcement) Act 2022— (a) for section 28 substitute— ...“28 Administrative removal of material from the register (1) The registrar may remove from the register anything that appears to the registrar to be— (a) a document, or material derived from a document, accepted under section 1073 of the Companies Act 2006 (power to accept documents not meeting requirements for proper delivery), or (b) unnecessary material as defined by section 1074 of the Companies Act 2006. (2) The power to remove material from the register under this section may be exercised— (a) on the registrar’s own motion, or (b) on an application made in accordance with regulations under section 28A(2). (3) The Secretary of State may by regulations provide that the registrar’s power to remove material from the register under this section following an application is limited to material of a description specified in the regulations. (4) Regulations under this section are subject to the negative resolution procedure.... 28A Further provision about removal of material from the register (1) The Secretary of State must by regulations make provision for notice to be given in accordance with the regulations where materia...
- ‼️ Economic Impact
  (Variously affected)
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 339A (threshold amounts)
The bill proposes amendments to section 339A, which deals with threshold amounts. The amendments include a new subsection (6A) that sets a threshold amount of £1000 for acts done by a person carrying on business in the regulated sector for the purposes of terminating a business relationship with a customer or client.
Exemplar quote from bill: ... (Information on the Payer) Regulations 2017 (S.I. 2017/692) (customer due diligence measures).” 5 10 15 20 25 30 35 40 45 50 Economic Crime and Corporate Transparency Bill Part 5 — Miscellaneous 162 ...(5) In section 339A (threshold amounts)— (a) for subsection (1) substitute— “(1) In this section— (a) subsections (2) to (6) apply for the purposes of sections 327(2C), 328(5) and 329(2C), and (b) subsection (6A) applies for the purposes of sections 327(2D), 328(6) and 329(2D).”; (b) after subsection (6) insert— “(6A) The threshold amount for acts done by a person carrying on business in the regulated sector, for the purposes of the termination of a business relationship with a customer or client, is £1000.”; (c) in subsection (7), after “subsection (2)” insert “or (6A)”.... (6) In section 340 (interpretation of Part 7), after subsection (16) insert— “(17) “Business relationship” means a business, professional or commercial relationship between a person carrying on busin...
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 459 (orders and regulations)
The bill proposes amendments to section 459, which deals with orders and regulations. The amendments include a new provision that no regulations may be made by the Secretary of State under certain sections unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.
Exemplar quote from bill: ...ustomer or client, where the relationship— (a) arises out of the business of that person, and (b) is expected by that person, at the time when contact is established, to have an element of duration.” ...(7) In section 459 (orders and regulations)— (a) in subsection (4), after paragraph (aza) insert— “(azaa) regulations under section 327(2E)(a), 328(7)(a) or 329(2E)(a);”; (b) after subsection (6ZB) insert— “(6ZBA) No regulations may be made by the Secretary of State under section 327(2E)(a), 328(7)(a) or 329(2E)(a) unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.”... 177 Money laundering: exemptions for mixed-property transactions (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 327 (concealing etc), after subsection (2E) (inserted by sect...
- ‼️ Political Power
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 279L and 279M
The bill introduces new sections 279L and 279M. Section 279L applies to firms where all members are joint secretaries of a company and the firm is not a legal person under the law by which it is governed. Section 279M establishes that if a company fails to comply with sections 279G, 279H, or 279I, an offence is committed by the company and every officer of the company who is in default.
Exemplar quote from bill: ...secretary) of a description mentioned in subsection (1). (3) Regulations under this section are subject to affirmative resolution procedure. 279L Firms all of whose partners are joint secretaries (1) ...This section applies where— (a) all the members in a firm are joint secretaries (or proposed joint secretaries) of a company, and (b) the firm is not a legal person under the law by which it is governed.... (2) Any requirement imposed by this Act to provide the required information about the members as joint secretaries (or proposed joint secretaries) may instead be satisfied by providing the informatio...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: amendment
Section 790A, 790C, 790E, 790G, 790H, 790J, 790K, 790L
The bill amends several sections of the Companies Act 2006. The amendments include changes to the requirements for companies to notify the registrar of information, the definition of a person appearing in the register as a registrable person or a registrable relevant legal entity, and the company's duty to keep information up-to-date.
Exemplar quote from bill: ... 40 Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 3 — Register of people with significant control 204 8 In section 790A (overview of Part)— (a) ...in paragraph (b), for “keep the register required by Chapter 3” substitute “notify the registrar of the information in accordance with Chapter 2A”;... (b) for paragraphs (c) and (d) substitute— “(c) Chapter 2A requires companies to notify the registrar of information relating to persons with significant control;”. 9 (1) Section 790C (key terms) is ...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 2A
The bill introduces Chapter 2A, which imposes a duty on companies to notify the registrar if they become aware that a person has become or ceased to be a registrable person or a registrable relevant legal entity in relation to the company.
Exemplar quote from bill: ...0L insert— “CHAPTER 2A DUTY TO NOTIFY REGISTRAR OF PERSONS WITH SIGNIFICANT CONTROL AND ID VERIFICATION Duty to notify registrar 790LA Duties to notify changes in persons with significant control (1) ...A company must give notice to the registrar if it becomes aware that a person has— (a) become a registrable person or a registrable relevant legal entity in relation to the company, or (b) ceased to be a registrable person or a registrable relevant legal entity in relation to it.... (2) The notice must specify the date on which the person became or ceased to be a registrable person or a registrable relevant legal entity in relation to the company. (3) A notice under subsection (...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 127Q (release of property)
The bill proposes a new provision for unclaimed cryptoasset-related items. If such an item is not claimed within a year of its release, the appropriate officer may retain, dispose of, or destroy the item.
Exemplar quote from bill: ...ven in section 47C(4) (reading references there to the defendant as references to the person by whom the property is held);”. 8 In section 47R (release of property), after subsection (5) insert— “(6) ...If a cryptoasset-related item which has been released is not claimed within the period of a year beginning with the date on which it was released, the appropriate officer may— (a) retain the item and deal with it as they see fit, (b) dispose of the item, or (c) destroy the item.... (7) The powers in subsection (6) may be exercised only— (a) where the appropriate officer has taken reasonable steps to notify— (i) the person from whom the item was seized, and (ii) any other person...
- ‼️ Economic Impact
  This change could potentially impact the value and circulation of cryptoassets, as unclaimed assets could be destroyed or disposed of.
- ‼️ Justice System
  This change could affect the handling of seized assets in criminal cases, particularly those involving cryptoassets.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 128 (enforcement administrators)
The bill proposes to give enforcement administrators the power to destroy property that consists of cryptoassets.
Exemplar quote from bill: ...ows. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Schedule 7 — Cryptoassets: confiscation orders Part 1 — England and Wales 224 (2) In subsection (2), at the end insert— “(e) ...so far as the property consists of cryptoassets, power to destroy the property....” (3) In subsection (8)(a), for “or (c)” substitute “, (c) or (e)”. (4) After subsection (9) insert— (9A) The court may confer the power mentioned in subsection (2)(e) only where— (a) it is not reason...
- ‼️ Economic Impact
  This change could potentially impact the value and circulation of cryptoassets, as assets could be destroyed.
- ‼️ Justice System
  This change could affect the handling of seized assets in criminal cases, particularly those involving cryptoassets.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 131ZB (Cryptoassets)
The bill proposes a new section that applies to cryptoassets held by a person in a crypto wallet administered by a UK-connected cryptoasset service provider, but only if the cryptoassets are free property.
Exemplar quote from bill: ...l institution” means a bank, a building society, an electronic money institution or a payment institution;”. (7) For the heading substitute “Money”. 12 After section 67 insert— “67ZA Cryptoassets (1) ...This section applies to cryptoassets which— (a) are held by a person, and (b) are held in a crypto wallet administered by a UK-connected cryptoasset service provider, but only so far as the cryptoassets are free property.... (2) Subsection (3) applies if— (a) a confiscation order is made against a person holding cryptoassets to which this section applies, and (b) a receiver has not been appointed under section 50 in rela...
- ‼️ Economic Impact
  This change could potentially impact the handling and regulation of cryptoassets in the UK.
- ‼️ Justice System
  This change could affect the handling of seized assets in criminal cases, particularly those involving cryptoassets.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Section 131AA (Destruction of seized cryptoassets)
The bill proposes a new section that applies to cryptoassets held by a person and seized by an appropriate officer under a relevant seizure power.
Exemplar quote from bill: ...5) The Secretary of State may by regulations amend the definitions in subsection (3) (including by amending subsection (4)).” 13 After section 67A insert— “67AA Destruction of seized cryptoassets (1) ...This section applies to cryptoassets which are held by a person and which have been seized by an appropriate officer under a relevant seizure power.... (2) A magistrates’ court may by order authorise an appropriate officer to destroy the cryptoassets if— (a) a confiscation order is made against the person by whom the cryptoassets are held, (b) a rec...
- ‼️ Economic Impact
  This change could potentially impact the handling and regulation of cryptoassets in the UK.
- ‼️ Justice System
  This change could affect the handling of seized assets in criminal cases, particularly those involving cryptoassets.
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Chapter 4 of the Proceeds of Crime Act 2002
The bill introduces a new definition for "enforcement officer" in the context of this chapter, which includes officers of Revenue and Customs, constables, SFO officers, and accredited financial investigators specified by the Secretary of State or the Welsh Ministers.
Exemplar quote from bill: ...ions of “cryptoasset” and “crypto wallet” in this section. (3) The Secretary of State must consult the Scottish Ministers and the Department of Justice before making regulations under subsection (2). ...(4) In this Chapter— (a) “enforcement officer” means— (i) an officer of Revenue and Customs, (ii) a constable, (iii) an SFO officer, or (iv) an accredited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453;... (b) “senior officer” means— (i) an officer of Revenue and Customs of a rank designated by the Commissioners for His Majesty’s Revenue and Customs as equivalent to that of a senior police officer of a...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵🔵 High
- Type: insertion
Part 5 of the Proceeds of Crime Act 2002
The bill proposes a new order of priority for the application of proceeds from the realisation of detained property. This includes payments required by other sections of the bill, legal expenses, costs of storing or insuring the property, and payments into the Consolidated Fund or the Scottish Consolidated Fund.
Exemplar quote from bill: ... circulation would facilitate criminal conduct by any person. 303Z49 Proceeds of realisation (1) This section applies where any cryptoasset or other item of property is realised under section 303Z48. ...(2) The proceeds of the realisation must be applied as follows— (a) first, they must be applied in making any payment required to be made by virtue of section 303Z45(9); (b) second, they must be applied in making any payment of legal expenses which, after giving effect to section 303Z41(6) (including as applied by section 303Z45(5)), are payable under this subsection in pursuance of provision under section 303Z41(5) or, as the case may be, 303Z45(4); (c) third, they must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the property whilst detained under this Part and in realising the property; (d) fourth, they must be paid— (i) if the property was forfeited by a magistrates’ court or the High Court, into the Consolidated Fund; (ii) if the property was forfeited by the sheriff or the Court of Session, into the Scottish Consolidated Fund.... 5 10 15 20 25 30 35 40 45 Economic Crime and Corporate Transparency Bill Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002 270 (3) If what is r...
- ‼️ Economic Impact
  This change could have significant economic implications, particularly for those who have property detained under this part of the bill. The prioritisation of payments could affect the amount of money that individuals or entities are able to recover from the realisation of their property.
- ‼️ Justice System
  This change could also impact the justice system, as it provides a clear framework for the application of proceeds from the realisation of detained property. This could potentially streamline legal processes and reduce disputes over the distribution of these proceeds.
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 88B of the Companies Act 2006
The bill introduces a new provision allowing companies to change their registered email address by giving notice to the registrar. The notice must confirm that the new address is appropriate, and the change takes effect once the notice is registered.
Exemplar quote from bill: ...not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 5 on the standard scale. 88B Change of registered email address (1) ...A company may change its registered email address by giving notice to the registrar.... (2) The notice must include a statement that the new address is an appropriate email address within the meaning given by section 88A(2). (3) The change takes effect upon the notice being registered b...
- ‼️ Economic Impact
  This change provides companies with flexibility to change their registered email address, which could be beneficial in cases where a company's email address needs to be changed for operational reasons.
- ‼️ Justice System
  This change could potentially increase the workload of the registrar, who will need to process notices of changes to registered email addresses.
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Article 6 (disqualification for persistent breaches of companies legislation)
The amendment changes the language in paragraph (1) of Article 6, replacing "provisions of the companies legislation" with "relevant provisions of the companies legislation".
Exemplar quote from bill: ... 32 Disqualification for persistent breaches of companies legislation: NI (1) The Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)) is amended as follows. (2) ...In Article 6 (disqualification for persistent breaches of companies legislation)— (a) in paragraph (1), for the words from “provisions of the companies legislation” to the end substitute “relevant provisions of the companies legislation (see paragraph (3ZA))”;... (b) in paragraph (2), for “such provisions as are mentioned in paragraph (1)” substitute “relevant provisions of the companies legislation”; (c) in paragraph (3), after sub-paragraph (a) (but before ...
- ‼️ Justice System
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Companies Act 2006, Section 112
The amendment to Section 112 of the Companies Act 2006 clarifies that if an individual's name is not entered in the required form in a company's register of members, it does not affect the person's membership status.
Exemplar quote from bill: ... Corporate Transparency Bill Part 1 — Companies etc 35 Register of members 46 Register of members: information to be included and powers to obtain it (1) The Companies Act 2006 is amended as follows. ...(2) In section 112 (the members of a company), at the end insert— “(4) Where an individual’s name is entered in a company’s register of members but is not in the form required by section 113A, that does not affect the person becoming a member of the company by virtue of subsection (2).”... (3) For the italic heading “General” at the beginning of Chapter 2 of Part 8 substitute “Duty to keep register”. (4) In section 113 (register of members)— (a) for subsection (2) substitute— “(2) Ther...
- ‼️ Corporate Governance
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 114 of the Companies Act 2006
The bill proposes to amend Section 114 of the Companies Act 2006 to replace "names of the members of the company" with "names or titles of the members of the company (to be known as “the index of members’ names”)"
Exemplar quote from bill: ...bers”. (6) Section 115 (index of members)— (a) is moved to after the italic heading “Duty to keep index of members” inserted by subsection (5) of this section, and (b) is renumbered section 113J. (7) ...In that section as renumbered— (a) in subsection (1), for “names of the members of the company” substitute “names or titles of the members of the company (to be known as “the index of members’ names”)”;... (b) for subsection (3) substitute— “(3) The index must include the same details of a person’s name or title as are entered in the register of members.” 5 10 15 20 25 30 35 40 45 Economic Crime and Co...
- ‼️ Corporate Transparency
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 123 of the Companies Act 2006
The bill proposes to amend Section 123 of the Companies Act 2006 to omit the requirement for the name and address of the sole member in subsections (1), (2), and (3).
Exemplar quote from bill: ...ncy Bill Part 1 — Companies etc 39 (8) Before section 114 insert— “Inspection etc of register and index of members”. (9) Before section 121 insert— “Removal of entries from register of members”. (10) ...In section 123 (single member companies)— (a) in subsection (1), omit “, with the name and address of the sole member,”; (b) in subsection (2), omit “, with the name and address of the sole member”; (c) in subsection (3), omit “, with the name and address of the person who was formerly the sole member”.... (11) In section 771 (procedure on transfer being lodged), after subsection (1) insert— “(1A) The company may not register the transfer under subsection (1)(a) unless satisfied that it has the informa...
- ‼️ Corporate Transparency
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 1083 of the Companies Act 2006
The bill proposes to reduce the period for which original documents must be preserved from three years to two years.
Exemplar quote from bill: ...ction by the Economic Crime and Corporate Transparency Act 2023”. 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 1 — Companies etc 68 78 Preservation of original documents ...In section 1083 of the Companies Act 2006 (preservation of original documents), in subsection (1), for “three years” substitute “two years”.... 79 Records relating to dissolved companies etc (1) The Companies Act 2006 is amended as follows. (2) Section 1084 (records relating to companies that have been dissolved etc) is to extend also to Sco...
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 1084 of the Companies Act 2006
The bill proposes to extend the application of Section 1084, which pertains to records relating to dissolved companies, to Scotland.
Exemplar quote from bill: ...(preservation of original documents), in subsection (1), for “three years” substitute “two years”. 79 Records relating to dissolved companies etc (1) The Companies Act 2006 is amended as follows. (2) ...Section 1084 (records relating to companies that have been dissolved etc) is to extend also to Scotland and is amended as follows—... (a) in subsection (1), after paragraph (c) insert— “and a reference in this section to “the relevant date” is to the date on which the company was dissolved, the overseas company ceased to have that...
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 1093 of the Companies Act 2006
The bill proposes to amend Section 1093 of the Companies Act 2006, which pertains to the registrar's notice to resolve inconsistencies on the register.
Exemplar quote from bill: ...ion (1), after paragraph (e) insert— “(ea) any information provided to the registrar under section 1092A (power to require further information);”. 81 Registrar’s notice to resolve inconsistencies (1) ...Section 1093 of the Companies Act 2006 (registrar’s notice to resolve inconsistency on the register) is amended as follows.... (2) For subsections (1) and (2) substitute— “(1) Where it appears to the registrar that the information contained in a document delivered to the registrar in relation to a company is inconsistent wit...
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Section 1063 of the Companies Act 2006
The bill amends Section 1063 of the Companies Act 2006 to allow the Secretary of State to consider costs incurred in carrying out functions under various acts, including the Economic Crime (Transparency and Enforcement) Act 2022 and this Act, when deciding on provisions under subsection (3)(a).
Exemplar quote from bill: ...nformation to other public authorities).” 90 Fees: costs that may be taken into account (1) Section 1063 of the Companies Act 2006 (fees) is amended as follows. (2) After subsection (3) insert— “(3A) ...In deciding what provision to make under subsection (3)(a), the Secretary of State may take into account any costs incurred or likely to be incurred by any person for the purposes of the carrying out of— (a) any function of the Secretary of State under or in connection with— the Limited Partnerships Act 1907; Part 14 of the Companies Act 1985; the Company Directors Disqualification Act 1986; the Limited Liability Partnerships Act 2000; Part 1 of the Economic Crime (Transparency and Enforcement) Act 2022; this Act;...s Act; (b) any function of a Northern Ireland department under or in connection with the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)); 5 10 15 20 25 30 35...
- ‼️ Economic Impact
  This change could potentially have economic implications for entities that incur costs in carrying out functions under the specified acts.
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 340 (interpretation of Part 7)
The bill proposes the insertion of a new subsection (17) in section 340, which provides a definition for "business relationship".
Exemplar quote from bill: ...business in the regulated sector, for the purposes of the termination of a business relationship with a customer or client, is £1000.”; (c) in subsection (7), after “subsection (2)” insert “or (6A)”. ...(6) In section 340 (interpretation of Part 7), after subsection (16) insert— “(17) “Business relationship” means a business, professional or commercial relationship between a person carrying on business in the regulated sector and a customer or client, where the relationship— (a) arises out of the business of that person, and (b) is expected by that person, at the time when contact is established, to have an element of duration.”... (7) In section 459 (orders and regulations)— (a) in subsection (4), after paragraph (aza) insert— “(azaa) regulations under section 327(2E)(a), 328(7)(a) or 329(2E)(a);”; (b) after subsection (6ZB) i...
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Extent
The bill specifies that this Act extends to England and Wales, Scotland, and Northern Ireland.
Exemplar quote from bill: ...aft of the regulations has been laid before, and approved by a resolution of, the Northern Ireland Assembly. (10) This section does not apply to regulations under sections 206 and 207. 205 Extent (1) ...This Act extends to England and Wales, Scotland and Northern Ireland, subject to subsection (2).... (2) An amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked. 206 Commencement (1) Except as provided by subsections (2) to (5), this Act ...
- ‼️ Territorial Governance
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Commencement
The bill states that this Act comes into force on a day appointed by the Secretary of State through regulations made by statutory instrument, except as provided by subsections (2) to (5).
Exemplar quote from bill: ...otland and Northern Ireland, subject to subsection (2). (2) An amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked. 206 Commencement (1) ...Except as provided by subsections (2) to (5), this Act comes into force on such day as the Secretary of State may by regulations made by statutory instrument appoint.... (2) The following come into force on the day on which this Act is passed— (a) this Part; (b) any provision of, or amendment made by, Parts 1 to 5 so far as it confers a power to make regulations or r...
- ‼️ Political Power
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Transitional provision
The bill allows the Secretary of State to make transitional or saving provision in connection with the coming into force of any provision of this Act, except for provisions mentioned in section 206(4) or (5).
Exemplar quote from bill: ...the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)). 5 10 15 20 25 30 35 40 Economic Crime and Corporate Transparency Bill Part 6 — General 194 207 Transitional provision (1) ...The Secretary of State may by regulations made by statutory instrument make transitional or saving provision in connection with the coming into force of any provision of this Act, other than a provision mentioned in section 206(4) or (5).... (2) The Scottish Ministers may by regulations make transitional or saving provision in connection with the coming into force of a provision mentioned in section 206(4). (3) The Department of Justice ...
- ‼️ Political Power
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: amendment
Schedule 8 (index of defined expressions)
The bill proposes to remove the entries related to "the central register", "PSC register", "register of directors", "register of directors’ residential addresses", and "register of secretaries" from Schedule 8 (index of defined expressions).
Exemplar quote from bill: ...ister);”. 28 In paragraph 4 of Schedule 5 (communications by a company)— (a) in sub-paragraph (1)(d), for “the company’s register of directors” substitute “the register”; (b) omit sub-paragraph (1A). ...29 In Schedule 8 (index of defined expressions), omit the entries relating to— “the central register”; “PSC register”; “register of directors”; “register of directors’ residential addresses”; “register of secretaries”....Economic Crime and Corporate Transparency Bill Schedule 2 — Abolition of certain local registers Part 4 — Consequential amendments 211 “register of secretaries”. SCHEDULE 3 Section 91 DISCLOSURE OF IN...
- ‼️ Corporate Transparency
  (Variously affected)
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: substitution
Schedule 7 — Cryptoassets: confiscation orders
The bill proposes to substitute the term "bank or a building society" with "relevant financial institution" in subsection (1)(b). This change broadens the scope of the provision to include other types of financial institutions.
Exemplar quote from bill: ...on of the confiscation order, an amount equal to the market value, as set out in the order, of the cryptoassets which have been destroyed.” 11 (1) Section 67 (seized money) is amended as follows. (2) ...In subsection (1)(b), for “bank or a building society” substitute “relevant financial institution”.... (3) In subsection (5A)— (a) for “a bank or building society” substitute “a relevant financial institution”; (b) for “the bank or building society” substitute “the relevant financial institution”. (4)...
- ‼️ Economic Impact
  This change could potentially affect a wider range of financial institutions and could have implications for how they handle cryptoassets.
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 131ZA (seized money)
The bill proposes to replace the term "bank or building society" with "relevant financial institution" in the context of seized money.
Exemplar quote from bill: ...as set out in the order, of the cryptoassets which have been destroyed.” 11 (1) Section 67 (seized money) is amended as follows. (2) In subsection (1)(b), for “bank or a building society” substitute “...relevant financial institution...”. (3) In subsection (5A)— (a) for “a bank or building society” substitute “a relevant financial institution”; (b) for “the bank or building society” substitute “the relevant financial institution”. (...
- ‼️ Economic Impact
  This change could potentially broaden the types of institutions that can handle seized money.
- ‼️ Justice System
  This change could affect the handling of seized assets in criminal cases.
- ⚫ Notable
- Impact: 🔵🔵 Moderate
- Type: insertion
Section 143 of the Policing and Crime Act 2017
The bill proposes an amendment to section 143 of the Policing and Crime Act 2017, specifically to the interpretation of "financial sanctions legislation". The amendment expands the definition to include supplemental provisions related to any prohibition or requirement.
Exemplar quote from bill: ...and lay reports under subsection (1) ceases with the laying of the first report on or after 1 January 2030. Sanctions enforcement: monetary penalties 202 Sanctions enforcement: monetary penalties (1) ...In section 143 of the Policing and Crime Act 2017 (interpretation), in subsection (4) (meaning of “financial sanctions legislation”), in paragraph (f)— (a) the words from “contains” to the end become sub-paragraph (i); (b) at the end of that sub-paragraph insert—“; (ii) makes supplemental provision (within the meaning of section 1(6) of that Act) in connection with any prohibition or requirement mentioned in sub-paragraph (i).”... (2) The Sanctions and Anti-Money Laundering Act 2018 is amended as follows. (3) In section 17 (enforcement), in subsection (9), in paragraph (a), after “(2)” insert “or makes supplemental provision i...
- ‼️ Justice System
  (Variously affected)
- ‼️ Economic Impact
  (Variously affected)
- ⚫ Notable
- Impact: 🔵 Minor
- Type: amendment
Section 3 of the Company Directors Disqualification Act 1986
The bill amends Section 3 of the Company Directors Disqualification Act 1986, changing the language to refer to "relevant provisions of the companies legislation" instead of "provisions of the companies legislation".
Exemplar quote from bill: ...e meaning as in the Companies Acts (see section 1060 of the Companies Act 2006). Disqualification in relation to companies 31 Disqualification for persistent breaches of companies legislation: GB (1) ...Section 3 of the Company Directors Disqualification Act 1986 (disqualification for persistent breaches of companies legislation) is amended as follows.... (2) In subsection (1), for the words from “provisions of the companies legislation” to the end substitute “relevant provisions of the companies legislation (see subsection (3B))”. (3) In subsection (...
- ‼️ Justice System
  This change could potentially affect how cases of persistent breaches of companies legislation are handled, depending on the interpretation of "relevant provisions".
- ⚫ Notable
- Impact: 🔵 Minor
- Type: amendment
Section 156C of the Companies Act 2006
The bill proposes to amend the language of section 156C, changing "be a director" to "hold office by virtue of that appointment".
Exemplar quote from bill: ...sert— 41 Section 40: amendments to clarify existing corresponding provisions (1) The Companies Act 2006 is amended as follows. (2) In section 156C (existing director who is not a natural person)— (a) ...in subsection (2), for “be a director” substitute “hold office by virtue of that appointment”;... (b) after subsection (2) insert— “(2A) Nothing in this section affects any liability of a person under any provision of the Companies Acts or any other enactment, if, having ceased to hold office by ...
- ‼️ Justice System
  This change clarifies the language of the law, potentially reducing ambiguity in legal proceedings.
- ⚫ Notable
- Impact: 🔵 Minor
- Type: insertion
Short title
The bill provides the short title of the Act as the Economic Crime and Corporate Transparency Act 2023.
Exemplar quote from bill: ...rthern Ireland to make an order under subsection (3) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)). 208 Short title ...This Act may be cited as the Economic Crime and Corporate Transparency Act 2023.... 5 10 15 20 25 Economic Crime and Corporate Transparency Bill Schedule 1 — Register of members: consequential amendments 195 SCHEDULES SCHEDULE 1 Section 49 REGISTER OF MEMBERS: CONSEQUENTIAL AMENDMEN...
- ‼️ Political Power
  (Variously affected)
- ⚫ Notable
- Impact: Unknown
- Type: deletion
Clause 2 and Clause 4
The bill proposes the deletion of Clause 2 and Clause 4, but without the full text of these clauses, it's unclear what the specific changes are.
Exemplar quote from bill: ...ut by others of unlawful activities.” 4 Page 2, line 10, at end insert— “(2) In Objective 2 the reference to “the register” includes any records kept by the registrar under any enactment.” Clause 2 5 ...Leave out Clause 2 Leave out Clause 4...ut Clause 4 After Clause 4 7 Insert the following new Clause— “Information about subscribers (1) The Companies Act 2006 is amended as follows. 2 (2) In section 9 (registration documents)— (a) after su...
- ⚫ Notable
- Impact: Unknown
- Type: insertion
After Clause 4
The bill proposes the insertion of a new clause after Clause 4, which amends the Companies Act 2006 to include information about subscribers. However, without the full text of this new clause, it's unclear what the specific changes are.
Exemplar quote from bill: ...sert— “(2) In Objective 2 the reference to “the register” includes any records kept by the registrar under any enactment.” Clause 2 5 Leave out Clause 2 Clause 4 6 Leave out Clause 4 After Clause 4 7 ...Insert the following new Clause— “Information about subscribers (1) The Companies Act 2006 is amended as follows.... 2 (2) In section 9 (registration documents)— (a) after subsection (3) insert— “(3A) The application must contain— (a) a statement of the required information about each of the subscribers to the memo...

That's everything!

Remember: This document is not guaranteed to reflect the content of the bill, and may be entirely inaccurate in its summaries. This is an experimental analysis. Read the bill itself on the official parliament bills website: https://bills.parliament.uk/bills/3339

Economic Crime and Corporate Transparency Bill

TL;DR:

Concerns:

Detailed Overview:

Tougher Rules on Company Formation and Directors

New Reporting and Verification Duties

Increased Powers for the Registrar

Reforms to Company Registers

Civil and Criminal Penalties

Rules on Cryptoassets

Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001

subsection 790LP

Section 1112B of the Companies Act 2006

Seizure and detention of cryptoasset-related items

Section 76 of the Companies Act 2006

Section 1189 of the Companies Act 2006

Section 246 of the Companies Act 2006

Section 1110B of the Economic Crime and Corporate Transparency Bill

Section 1110D of the Companies Act 2006

Sections 1095 and 1095A of the Companies Act 2006

Section 790ZH of the Companies Act 2006

Section 1112 of the Companies Act 2006

Section 8U of the Limited Partnerships Act 1907

Section 4 of the Limited Partnerships Act 1907

Section 6 of the Limited Partnerships Act 1907

Section 28 of the Limited Partnerships Act 1907

Section 29 of the Limited Partnerships Act 1907

Section 16A of the Limited Partnerships Act 1907

Section 16C of the Limited Partnerships Act 1907

Section 16D of the Limited Partnerships Act 1907

Section 16E of the Economic Crime and Corporate Transparency Bill

Section 16 of the Economic Crime (Transparency and Enforcement) Act 2022

Sections 22 to 24 of the Economic Crime (Transparency and Enforcement) Act 2022

Section 25 of the Economic Crime (Transparency and Enforcement) Act 2022

Section 27 of the Economic Crime (Transparency and Enforcement) Act 2022

Section 15 of the Economic Crime (Transparency and Enforcement) Act 2022

Sections 182 and 183

Section 111C of the Economic Crime and Corporate Transparency Act 2023

Section 111D of the Economic Crime and Corporate Transparency Act 2023

Section 2A of the Criminal Justice Act 1987

Regulation 16 of the Reports on Payments to Governments Regulations 2014

Section 202 of the Economic Crime and Corporate Transparency Act 2023

Regulations authorising the imposition of a monetary penalty

Companies Act 2006, section 242

Power of the Secretary of State to amend definitions

Power to destroy seized cryptoassets

Chapter 4 of the Proceeds of Crime Act 2002

Schedule 8 — Cryptoassets: civil recovery Part 1 — Amendments of Part 5 of the Proceeds of Crime Act 2002

Section 148, Section 157, Section 230, Section 278, Section 290, Section 303E, Section 303Z17A, Section 311A of the Proceeds of Crime Act 2002

Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001

Schedule 9 — Cryptoassets: terrorism, Part 1 — Amendments to the Anti-terrorism, Crime and Security Act 2001

Sub-paragraphs (1) to (4) of paragraph 10Z7CF of the Economic Crime and Corporate Transparency Bill

Sub-paragraphs (1) to (3) of paragraph 10Z7CH of the Economic Crime and Corporate Transparency Bill

Schedule 6 (financial information)

Regulations on use or disclosure of profit and loss accounts for certain companies

Section 8, Clause 157, Clause 158, Clause 160, Clause 164, Clause 165, Clause 166, Clause 172, Clause 173, Clause 174

Section (Failure to prevent fraud)

Penalties for False Statements

Power to Exclude Descriptions of Registrable Beneficial Owner

Section 242 and 243 of the Companies Act 2006

Section 1087 of the Companies Act 2006

Section 16B of the Limited Partnerships Act 1907

Part 1, in paragraph 1(1)

Companies Act 2006

Section 167M of the Companies Act 2006

Section 84A

Schedule 1 to the Anti-terrorism, Crime and Security Act 2001

Registrar's power to strike off company registered on false basis

New Clause - Power to strike out certain claims

New Clause - Attributing criminal liability for economic crimes to certain bodies

Section (Failure to prevent fraud)

Section (Failure to prevent fraud and money laundering)

Section 9 of the Companies Act 2006

Section 9 of the Companies Act 2006

Section 12 of the Companies Act 2006

Section 12 of the Companies Act 2006

Companies Act 2006

Section 167N of the Companies Act 2006

Sections 1087A and 1087B

Section 241 of the Companies Act 2006