Companies House Begins Crackdown on Financial Crime with New Powers

The phased implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) marks a decisive shift in the UK’s fight against fraud, signalling a more proactive and robust approach from Companies House. From 4 March 2024, the first suite of reforms delivers on long-promised legislative commitments to improve corporate transparency and restore trust in the UK’s business register—long seen as a soft target for financial criminals.

Among the most notable changes are the expanded powers for Companies House to query submitted data and demand supporting evidence, a move that will drastically limit the ability of bad actors to submit false or misleading information. The strengthened oversight on company names and the requirement for lawful business declarations at the point of incorporation and in annual filings sends a clear message: the register is no longer a haven for shell companies and fraudulent enterprises.

Importantly, the reforms are designed with a dual purpose. On one hand, they provide new powers to cleanse the register of details fraudulently submitted without individuals’ consent—an all-too-common tactic in identity misuse schemes. On the other, the reforms support a broader, systemic response to financial crime through improved data sharing with law enforcement and government bodies.

The emphasis on transparency also extends to infrastructure: companies must now maintain a verifiable registered address (not a PO Box) and provide a registered email. These small changes have big implications for traceability and accountability.

By embedding the reforms into existing reporting cycles—like confirmation statements—Companies House is seeking to balance the burden on legitimate businesses with the need to clamp down on illicit activity. Business Minister Kevin Hollinrake’s remarks underscore the wider economic rationale: protecting the UK's reputation as a safe and reputable place to do business.

As further provisions of the ECCT Act are rolled out, the corporate landscape in the UK is likely to change significantly. For compliance professionals, legal advisers and company directors alike, this is a pivotal moment that demands attention and action.

The message is clear: the era of unchecked anonymity in UK company registrations is drawing to a close.

Read the press release here.