Source · Select Committees · Foreign Affairs Committee
Recommendation 1
1
Accepted
Paragraph: 8
The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies...
Conclusion
The Committee underlines the imperative of implementing beneficial ownership rules and robust reform of Companies House, including new powers for the company registrar to verify information to ensure accuracy as well as discretionary powers to remove corporate entities from the register for wrongdoing and ensure robust identity verification requirements. It is important that beneficial ownership registers are as transparent as possible.
Government Response Summary
The government agrees and is reforming Companies House through the upcoming Economic Crime and Corporate Transparency Bill to broaden the Registrar's powers, introduce new objectives, improve data accuracy, and enhance investigation and enforcement capabilities.
Paragraph Reference:
8
Government Response
Accepted
HM Government
Accepted
The Government agrees with the Committee’s conclusion. The Government is committed to reforming Companies House, which will be legislated for within the upcoming Economic Crime and Corporate Transparency Bill. Building on the recently enacted Economic Crime (Transparency and Enforcement) Act, the Economic Crime and Corporate Transparency Bill (“The Bill”) will bear down further on kleptocrats, criminals, and terrorists who abuse our financial system, strengthening the UK’s reputation as a place where legitimate business can thrive, while driving dirty money out of the UK. Among other things, the Bill will broaden the powers of the Registrar of Companies House so that the Registrar can become a more active gatekeeper over company creation and a custodian of more reliable data. The Government will introduce new objectives for the The cost of complacency: illicit finance and the war in Ukraine: Government Response 3 Registrar, together with new powers to check, remove, or decline information submitted to, or already on, the Company Register, and expand the Registrar’s existing powers, to enable the Registrar to promote and maintain the integrity of the Register. Where it is apparent that misuse is taking place, the Government is empowering Companies House to take action, including strike-off where appropriate. For example, those who persist in failing to provide an appropriate registered office address may be struck off the register for a continued failure to comply with the requirements. The Bill will also introduce identity verification for people who manage and control companies and other UK entities registered at Companies House. This will improve the accuracy of Companies House data, to support business decisions and law enforcement investigations. Identity verification requirements will apply to all new and registered company directors and their equivalents for other registrable entities, People with Significant Control (PSCs), and anyone else filing with Companies House. Identity verification will be a simple, quick process without significantly adding to the existing requirements on business. Through the Bill, the Government will improve the transparency of company ownership. The Government will introduce measures to increase the amount, and usefulness, of the information held on company shareholders and PSCs of UK companies. Further, the Bill will provide Companies House with more effective investigation and enforcement powers, and enable more effective cross-checking of data with other public and private sector bodies.