LEGAL
Business leaders need to take note of the new Economic Crime (Transparency and Enforcement) Act 2022. Simon Elcock, Head of Dispute Resolution at DMH Stallard explains the background to the Act and what it will mean when introduced.
WHAT IS THE ECONOMIC CRIME ACT? The Economic Crime Act was fast tracked through Parliament to set up a register of overseas entities and their owners. This will require overseas entities who own land to register in certain circumstances. Changes have also been made to strengthen the Unexplained Wealth Orders regime and sanctions legislation has also undergone something of an overhaul. It is the responsibility of businesses to ensure that they comply with the new legislation. The fines for non-compliance can be up to £2,500 per day, with custodial sentences of up to five years.
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The UK government introduced to Parliament the Economic Crime (Transparency and Enforcement) Bill, which was fast-tracked through Parliament and received Royal Assent on March 14th 2022. The main aim of this Act of Parliament is to ensure that ownership of UK property is transparent. In particular, the Act is being introduced to crack down on illegitimate money which is circulating in the UK property
market. The National Crime Agency (NCA) has estimated that each year money laundering costs the UK approximately £100 billion. The government’s introduction of the Act is an important response to Russia’s invasion of Ukraine, which prompted the Houses of Parliament to rapidly pass legislation.
The National Crime Agency (NCA) have ❛❛ estimated that each year money laundering costs the UK approximately £100 billion ❜❜
