New Companies House reforms to increase protection from criminal activity

Companies will be better protected from fraud under new Companies House reforms that will do more to safeguard the personal data of business owners.

Business Minister Kelly Tolhurst announced a substantial package of reforms to Companies House that will help in minimising the burden on law abiding companies.

The package of proposed reforms includes:

• Knowing who is setting up, managing and controlling companies: Those who have a key role in companies will have their identity verified
• Improving the accuracy and usability of data on the register: Companies House will now be able to query and corroborate information before it is entered on the register. This will also mean it is easier and quicker to remove inaccurate information from the register
• Protecting personal information on the register: In a minority of cases the register can be misused to identify personal information, which can then be used for criminal purposes. Under these proposals Directors will be given additional rights over their information, for example personal home addresses, while ensuring this information is still available in a transparent manner to public authorities where appropriate.
• Improving the detection of possible criminal behaviour: Better information sharing by Companies House, other Government bodies and financial institutions will better protect businesses and ensure faster and more sophisticated identification of possible criminal activity – benefitting businesses and consumers.

Business Minister Kelly Tolhurst, commented, “The UK already has some of the strongest protections in the world against money laundering. We are ranked as one of the top countries worldwide for cracking down on economic crime – protecting businesses and consumers.

“The reforms announced today will support the fight against the use of dirty money in the UK and enhance the protections for entrepreneurs and directors from criminal activity.

“Knowing that a company’s information is accurate and transparent is a fundamental part of a leading business environment – giving entrepreneurs and businesses the confidence they need to do business in the UK.”

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