Key Facts

• New Clause 23 amends the Anti-terrorism, Crime and Security Act 2001 to create a civil recovery regime for cryptoassets used in terrorism.
• New Clause 30 introduces a duty to notify the registrar upon dissolution of a limited partnership.
• New Clause 31 allows the court to wind up a limited partnership on grounds of public interest at the Secretary of State's request.
• New Clause 32 enables winding up dissolved limited partnerships.
• New Clause proposes changes to Limited Partnerships Act 1907.
• Amendment allows court orders for winding up of dissolved limited partnerships if required duties were not followed.
• New clauses amend sections in Companies Act 2006 regarding removal of old names from public inspection.
• New clause would require disclosure of jurisdiction of issuing banks for company and individual subscriber bank accounts.
• Clause aims to flag potential fraud or dubious activities involving UK registered companies with foreign bank accounts.
• Proposal seeks to add transparency for Companies House in identifying legitimate business operations.
• The first report must be published within one year of this Act being passed.
• Each subsequent annual report must provide a breakdown of the registrar’s annual expenditure.
• Reports will include data on the number of companies struck off by the registrar and the amount of fines issued.
• New clause 26 introduces a reporting requirement for the Secretary of State to assess the sufficiency of powers available to Companies House.
• Each annual report would provide data on the number of companies struck off, fines issued, criminal convictions, and referrals to law enforcement bodies.
• New clause 28 requires reports on whether mechanisms exist to prosecute directors of struck-off companies and recoup money for creditors.
• The new clause aims to ensure regular updates on the implementation of the Bill's provisions.
• There are concerns about unscrupulous companies evading creditors through dissolution processes.
• Companies House already reports publicly on its activities and statistical releases.
• New clause 26 requires an assessment of whether the powers available to the Secretary of State and the registrar are sufficient.
• It asks for data on company incorporations by Authorised Company Service Providers.
• The MP wants confirmation that all subsections in new clause 26 will be explicitly covered elsewhere.
• New Clause 29 requires a report into the merits of a fund for tackling economic crime to be laid before Parliament within six months.
• New Clause 35 would disqualify individuals convicted under section 31 of the National Minimum Wage Act from serving as company directors without High Court leave.
• New Clause 44 would require HMRC to treat its anti-money laundering supervision function as a priority equal to other functions.
• £290 billion lost in fraud and money laundering comprises 14.5% of GDP.
• The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) supervises 25 organisations, primarily in legal and accounting professions.
• HMRC is responsible for supervising trusts and company service providers but does not take the job seriously according to the speaker.
• 81% of professional bodies were not supervising their members effectively, according to the 2021 OPBAS review.
• Half of supervisors did not ensure timely action on money laundering procedures.
• 60% of law firms visited by SRA in 2021 failed to comply with AML controls fully.
• The highest AML fine for a law firm by SRA was £232,500 compared to potential FCA fines of £5.4 million under similar powers.
• CLC imposed zero fines despite finding two-thirds of firms non-compliant in 2019-2020.
• The Law Society of Northern Ireland fined only one firm out of 228 cases found non-compliant with AML regulations.
• New clause 44 asks HMRC to prioritise its anti-money laundering supervisory function.
• The Treasury Committee’s economic crime report highlights that some 30,000 businesses fall into the bracket for supervision.
• According to a September 2021 report, over 80% of professional body supervisors had not implemented an effective risk-based approach and only a third were effective in developing adequate risk profiles.
• HMRC carried out 3,500 formal compliance inspections with businesses last year.
• HMRC issued over £2.5 million of penalties in 2021-22.
• In October 2022, HMRC fined 68 estate agents a collective total of £519,000 for breaching anti-money laundering regulations.
• New clause 50 aims to require all companies registering in the UK to have at least one person who ordinarily resides in the UK among their directors.
• The proposal has been considered and rejected before due to concerns over freedom of business and lack of enforcement benefits.
• Companies House is expected to work with the NCA to put in place systems for raising red flags during company registration processes.
• Stephen Kinnock proposes a new clause to address perceived loopholes in the Economic Crime (Transparency and Enforcement) Act 2022.
• The Financial Action Task Force highlights distinctions between company ownership and ultimate beneficial ownership of assets.
• Kevin Hollinrake argues that current requirements already cover disclosure of beneficial owners.