Are you prepared for the Economic Crime and Corporate Transparency Act 2023 ("ECCTA")?
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is a significant legislative initiative introduced by the UK Government, aimed at combatting the exploitation of corporate structures in relation to fraud and money laundering. Receiving Royal Assent on 26 October 2023, the ECCTA introduces a host of reforms to Company Law and greater powers to Companies House, thereby affecting both new and existing corporate entities. The ECCTA applies to all UK registered legal entities, UK companies, UK Limited Liability Partnerships (LLP), UK Limited Partnerships (LP) and overseas companies with a UK establishment registered. Some provisions held by the ECCTA are already in force whilst others are expected to fully take effect in the next two years.
Caroline Bamford
DIRECTOR OF CORPORATE SERVICES
+44 (0)7779 018769
+44 (0) 333 004 3456
caroline.bamford@michelmores.com
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The ECCTA imposes several new provisions including, for example:
It is our intention to become an ACSP so we will be able to support our clients in complying with the new requirements under the ECCTA as and when the relevant provisions come into force.
Successfully navigating the new policies and ensuring compliance with the obligations set out by the ECCTA will demand a unified approach for your business. Our dedicated Corporate Services team, led by specialists in the field of Corporate Governance and Company Law Compliance, and in collaboration with our specialist lawyers in the Business Group, Real Estate and Private Client teams, will provide cohesive guidance and solutions, helping you navigate the new legislation and prevent your organisation from committing an offence.
“The trend for greater corporate transparency is growing across the globe and the UK leads the way again with tackling corporate economic crime with the introduction of ECCTA. Most realise and accept that transparency in business is no longer an option but a ‘must’, so it is now vital for organisations to be ready for these changes. We are well placed and equipped to support our clients with the ECCTA compliance filing changes to Companies House as they develop in the coming years.”
Caroline Bamford
Under Part 35 CA 2006, the registrar is authorised to make rules governing the filing of documents at Companies House. The Registrar’s Rules are made under s 1117 CA 2006 and outline the form, manner of delivery and authentication methods for documents delivered to Companies House in electronic or paper format.
The Limited Liability Partnerships (Application and Modification of Company Law) Regulations 2025 apply certain ECCTA 2023 reforms to limited liability partnerships (LLPs), including mandatory IDV requirements for LLP members and PSCs of LLPs, prohibitions on the appointment of disqualified directors to LLPs and the abolition of the requirement to keep ‘local’ registers of information relating to LLP members and PSCs. The regulations are expected to take effect once the underlying provisions in ECCTA 2023 bring ss 167M and 790LA CA 2006 into force, which is expected to be on 18 November 2025; commencement regulations will be required. The regulations contain transitional and saving provisions in relation to the abolition of local registers as applied to LLPs.