Companies House Cracks Down on Corporate Abuse with New Powers

In a significant move to combat economic crime, Companies House, the UK's official registrar of companies, has been granted new and enhanced powers under the Economic Crime and Corporate Transparency Act. These changes represent a major shift in the organisation's role, moving from passively accepting information to actively scrutinising and challenging the data submitted.

The new powers, which were first introduced in March, aim to address the growing issue of companies being used for fraudulent activities, including money laundering and other forms of economic crime. For years, Companies House has lacked the authority to verify the information provided to it, making it vulnerable to abuse by criminals. The new legislation seeks to rectify this by giving the organisation the tools it needs to take a more proactive approach to combating these issues.

Enhanced Scrutiny and Verification

With the new powers, Companies House is now able to:

• Verify the identities of individuals setting up and managing companies. This will help to prevent the creation of fake companies and address the issue of ‘address hijacking’, where criminals register companies to innocent citizens’ addresses without their knowledge.
• Challenge and remove inaccurate information from the register. This will improve the accuracy and reliability of the information available to the public, helping to prevent fraud and money laundering.
• Share intelligence with government departments and law enforcement agencies. This will allow for more effective collaboration in tackling economic crime and will enable Companies House to play a more central role in the UK's efforts to reduce criminality.

A Proactive Approach to Combatting Crime

Companies House has been actively building its capacity to tackle economic crime. The organisation has created an intelligence hub, invested in systems and people to develop its intelligence capability, and implemented new operational processes and examination policies. This proactive approach has been bolstered by the new powers, which will enable Companies House to play a more active role in preventing and detecting crime.

The Future of Companies House

The new powers mark a significant turning point for Companies House. The organisation is committed to delivering these changes in phases over the coming years, with the implementation of identity verification being a key priority. This will make Companies House's position in the fight against economic crime even stronger.

A Balancing Act

While tackling economic crime is paramount, Companies House recognises the importance of providing excellent services to its customers and supporting the UK business environment. The organisation is committed to striking a balance between these two objectives, ensuring that the new measures do not hinder legitimate businesses.

Ultimately, Companies House's goal is to ensure that the UK's corporate register is accurate, reliable, and free from abuse. The new powers represent a crucial step in achieving this goal, and Companies House is well-positioned to play a vital role in tackling economic crime and protecting the integrity of the UK's business environment.