The Economic Crime (Transparency and Enforcement) Act 2022, (“ECTEA”) which provides for the creation and maintenance of a register of overseas entities by Companies House, and which contains requirements for overseas entities owning UK property to apply for registration and provide information about their beneficial owners – became effective law in the U.K. on 1st August 2022.
The ECTEA received Royal Assent on 15 March 2022 (having been laid before Parliament on 1 March 2022). and is based on the draft bill published in July 2018. The bill had been in discussion for some time due to concerns about the lack of transparency in respect of the ownership of UK property by overseas entities, and the use of overseas entities to launder money in the UK. It was expedited in response to the Russian invasion crisis in Ukraine.
As ever, H.M. Govt.’s own announcement(s) are often the clearest, most comprehensible and readable publications upon legal subjects, and we invite you consider:-
The cynics within this firm question whether it will actually be effective (and we suspect that consideration of how to circumvent the legislation is actively ongoing) – but we support the aims of the legislation.
For further information, please do not hesitate to contact this firm:-