Economic crime costs the UK economy billions annually, and Companies House is leading a major transformation to combat this through new powers granted by the Economic Crime and Corporate Transparency Act 2023.
A new progress report on the implementation of these powers demonstrates how Companies House is transforming from a passive register to an active gatekeeper and gives examples of how the agency is actively tackling economic crime and improving register data.
Key to Companies House progress is strengthened collaboration with The Insolvency Service and other law enforcement agencies to present a unified front against economic crime.
The report covers progress in the implementation of secondary legislation, Companies House and Limited Partnership reform, and updates on the Register of Overseas Entities and enforcement of the new powers.
The report includes detail on how Companies House has
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queried and removed false, misleading or incorrect information from the registers, with an impact on 100,400 companies – this often relates to the hijacking of innocent people’s identities or addresses, usually to enable criminality such as fraud or money laundering
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rejected 10,200 suspicious applications including where evidence has suggested mass incorporations at certain addresses are taking place – this practice has a known link with money laundering
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collaborated with The Insolvency Service and partners to identify approximately £50 million in UK property related to companies owned by organised criminals, which is now subject to ongoing asset recovery investigations
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played an active role in the first Europol Asset Sprint, which saw 43 law enforcement agencies across 28 countries, along with private sector partners, participating in this unique initiative aimed at enhancing the number of criminal assets seized globally
The report represents another significant milestone in the transformation of Companies House as it looks to achieve its vision of a transparent corporate framework that both supports economic growth and fights economic crime.
Chief executive of Companies House Louise Smyth said
These reforms represent a significant transformation of Companies House and I’m proud to see the real-world impact they’re already having.
Our latest report demonstrates how we’re strengthening the UK’s business environment by taking direct action against those misusing corporate structures, while improving the accuracy and reliability of our register for legitimate businesses.
Our new intelligence capabilities have now already facilitated approximately 850 intelligence reports to law enforcement partners, while our risk-based approach targets resources where they’ll have the greatest impact on economic crime.
As we prepare for the next phase of implementation, including mandatory identity verification by autumn 2025, we remain committed to creating a transparent company register that supports economic growth while making the UK a hostile environment for those looking to commit economic crime.
Director of Investigation and Enforcement Services at The Insolvency Service Dave Magrath said
The Insolvency Service’s close collaboration with Companies House is delivering positive results in the fight against economic crime, with joint efforts already identifying thousands of suspicious companies and millions in criminal assets.
Our investigative and enforcement powers, combined with Companies House’s enhanced intelligence capabilities, allow us to take decisive action against those who exploit company structures for fraud and money laundering.
Together, we’re building a more robust and trusted business environment that benefits legitimate companies while making the UK much harder for fraudsters to operate in.
