- The Insolvency Service’s new investigation and enforcement strategy will see the agency play a leading role in tackling economic crime and improving corporate standards
- Over the next five years, the agency will prosecute a wider range of offences, increase enforcement against companies acting against the public interest, and recover proceeds of crime
- The Insolvency Service will play a leading role helping the UK remain a safe and fair place to do business for all
The Insolvency Service has announced ambitious and transformational plans to play a more prominent role in the fight against economic crime and be recognised as the UK’s leading authority in enforcing corporate and insolvency standards.
Published today (Wednesday 16 July), the strategy commits the agency to broadening its remit, taking robust action against criminals who defraud businesses and taxpayers, and using artificial intelligence and advanced analytics to combat sophisticated financial wrongdoing.
The agency will also step up efforts to tackle money laundering through hiring experts in cryptoassets seizing more criminal proceeds of crime, and continuing to expand its intelligence functions. These teams were crucial in recent progress tackling networks of overseas criminals using shell companies registered in the UK.
Specialist investigators will continue to investigate COVID-19 Bounce Back Loan abuse, with the government announcing earlier this year that viable existing casework would be transferred to the Insolvency Service from the National Investigation Service (NATIS).
In 2024-25, the Insolvency Service secured 77 criminal convictions, over 1,000 director disqualifications, and more than £4 million in compensation. Forty-one companies were also wound-up in the public interest following investigations by the agency.
The economic benefits of the agency’s work in disqualifying company directors and shutting down rogue companies was calculated at in excess £50 million for this period.
Matt Ray, Director of Economic Crime Implementation at the Insolvency Service, said
Fraud is now the most common crime affecting businesses and individuals across the UK. Meanwhile criminal and corrupt actors continue to use UK corporate structures at huge scale to obscure their activities and launder the proceeds.
Alongside our ongoing role upholding the UK’s insolvency framework we will adopt a much more central role in the fight against economic crime and work with Companies House and other partners to tackle the mass misuse of our corporate framework – helping us deliver economic confidence.
Over the course of the strategy, our investigators will protect more consumers than ever before from rogue companies, target directors who fail to meet the high standards of behaviour we expect from them and lead the fight against fraudsters who have exploited government schemes designed to help small businesses.
By acting against those who are unfit to run companies, we are reducing the harm caused to legitimate businesses and creditors and creating a prosperous environment that supports economic growth.
Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said
Collaboration with key partners such as the Insolvency Service, in helping us improve compliance and prevent misuse of the Companies House register, is central to our enforcement approach.
We already work closely with these partners in tackling misuse and – as we are now demonstrating – delivering real-world impacts in the fight against economic crime.
I’m delighted that moving forward these links will be strengthened further.
Further information
The enforcement strategy has three core objectives
- Enforcement of the UK’s insolvency framework
- Enforcement of the Companies Act 1985 and associated legislation
- Tackling economic crime facilitated through companies
The Economic Crime and Corporate Transparency Act 2023 and its subsequent regulations created more than 100 new offences under the Companies Act and has provided funding for the Insolvency Service to play a more prominent role in corporate enforcement.
This will be supported by proactive intelligence gathering to keep pace with those who abuse the insolvency framework, manipulate victims, and take advantage of the corporate landscape.
The strategy will also see the Insolvency Service deepen its partnership with other agencies including the National Crime Agency and HMRC as well as working even more closely with Companies House to enforce corporate standards.
The Insolvency Service’s core role in protecting the insolvency framework and investigating national interest cases remains undiminished.
