In a bid to increase the transparency of UK corporate entities and combat fraud and money laundering, the UK Government has announced major reform to its register of company information.
Changes outlined by the UK Government seek to address the “weaknesses” which currently leave the UK’s company registration system vulnerable and give businesses greater confidence during transactions.
Directors, People with Significant Control (PSC) and individuals who file information on behalf of a company, will all now be subject to compulsory identity verification checks. Companies House will also require evidence of checks being carried out by regulated professional service providers submitting information on behalf of their clients.
Companies House will also gain powers to query, investigate and remove inaccurate or false information.
Minister for Corporate Responsibility, Lord Callanan commented:
“The reforms we are making to the Companies House register will provide businesses with greater confidence in their transactions.
“Mandatory identity verification will mean criminals have no place to hide – allowing us to clamp down on fraud and money laundering and ensure people cannot manipulate the UK market for their own financial gain, whilst ensuring for the majority that the processes for setting up and running a company remain quick and easy.”
The changes are a result of the government’s 2019 consultation on Corporate Transparency and Register Reform. The full government response is available here.
GlobalX already offer a full range of anti-money laundering, identification and fraud checks that remain compliant with the changes introduced during this reform.
If you would like to learn how GlobalX can help you navigate through anti-money laundering requirements, including company checks, official company filings and ID verification services, then please contact our team today!