The Economic Crime and Corporate Transparency Act 2023 is intended to address a number of concerns about economic crime, including the use of companies to launder money and finance terrorism. It is also intended to improve the transparency of UK companies, making it easier for law enforcement agencies to investigate wrongdoing.
One of the key changes introduced by the Act is a new requirement for companies to verify the identities of their directors. This will be done by requiring directors to provide their passport number or other form of government-issued identification. The Act also introduces new powers for the government to disqualify people from being company directors. These powers can be used against people who have been convicted of certain crimes, such as fraud and money laundering.
The Act also removes the option for companies to abridge their accounts. This means that all companies will now be required to publish a full set of accounts each year. This will make it easier for shareholders and other stakeholders to assess the financial performance of companies.
Finally, the Act introduces a new requirement for companies to confirm that they are complying with the law. This will be done by requiring companies to sign a declaration stating that they are complying with all applicable laws and regulations.
The Economic Crime and Corporate Transparency Act 2023 is a significant piece of legislation that will have a major impact on UK companies. The changes introduced by the Act are intended to address a number of concerns about economic crime and to improve the transparency of UK companies.
Here is a summary of the key changes introduced by the Act:
The Act is expected to come into force in 2024. It is imperative that companies take immediate action and commence preparation for the changes introduced by the Act.