Economic Crime (Transparency and Enforcement) Act 2022

PART 1 U.K. Registration of overseas entities

Introduction U.K.

1 Overview U.K.

This Part—

(a) sets up a register of overseas entities, which will include information about their beneficial owners (sections 3 to 32), and

(b) makes provision that, broadly speaking, is designed to compel overseas entities to register if they own land (sections 33 and 34).

Commencement Information

I1 S. 1 not in force at Royal Assent, see s. 69

I2 S. 1 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(a)

I3 S. 1 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

2 Definition of “overseas entity” etc U.K.

(1) In this Part “overseas entity” means a legal entity that is governed by the law of a country or territory outside the United Kingdom.

(2) In this Part “legal entity” means a body corporate, partnership or other entity that (in each case) is a legal person under the law by which it is governed.

Commencement Information

I4 S. 2 not in force at Royal Assent, see s. 69

I5 S. 2 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(a)

I6 S. 2 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

The register and registration U.K.

3 Register of overseas entities U.K.

(1) The registrar of companies for England and Wales (“the registrar”) must keep a register of overseas entities in accordance with this Part.

(2) The register is to consist of—

(a) a list of registered overseas entities,

(b) documents delivered to the registrar under this Part or regulations made under it, or otherwise in connection with the register, and

(c) any other information required to be included in the register by this Part or regulations made under it.

(3) The list of registered overseas entities must contain the name of each overseas entity that—

(a) has made an application for registration in accordance with the requirements of this Part (see section 4), and

(b) has not been removed from the list under section 10.

Commencement Information

I7 S. 3 not in force at Royal Assent, see s. 69

I8 S. 3 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(b)

I9 S. 3 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

4 Application for registration U.K.

(1) An application by an overseas entity for registration must be delivered to the registrar and contain—

(a) the statement and information listed in row 1, 2 or 3 of the table, and, where applicable, the statement and information mentioned in subsection (3),

(b) a statement that the entity has complied with section 12 (duty to take steps to identify registrable beneficial owners etc),

(c) anything required by regulations under section 16 (verification of registrable beneficial owners and managing officers) to be delivered to the registrar, and

(d) the name and contact details of an individual who may be contacted about the application.

(2) This is the table—

	Statement	Information
1	A statement: (a) that the entity has identified one or more registrable beneficial owners and that it has no reasonable cause to believe there are others, and (b) that the entity is able to provide the required information about each registrable beneficial owner it has identified.	1. The required information about the entity. 2. The required information about each registrable beneficial owner that the entity has identified.
2	A statement that the entity has no reasonable cause to believe that it has any registrable beneficial owners.	1. The required information about the entity. 2. The required information about each managing officer of the entity.
3	A statement: (a) that the entity has reasonable cause to believe that there is at least one registrable beneficial owner that it has not identified, (b) that the entity is not able to provide the required information about one or more of the registrable beneficial owners it has identified, or (c) that paragraphs (a) and (b) both apply.	1. The required information about the entity. 2. The required information about each managing officer of the entity. 3. The required information about each registrable beneficial owner that the entity has identified or so much of that information as it has been able to obtain.

(3) Where an application includes information that a registrable beneficial owner is a trustee (see paragraphs 3(1)(f) and 5(1)(h) of Schedule 1), the application must also include—

(a) the required information about the trust or so much of that information as the overseas entity has been able to obtain, and

(b) a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain.

(4) For the required information, see Schedule 1.

(5) For the meaning of “registrable beneficial owner”, see Schedule 2.

(6) The Secretary of State may by regulations specify additional statements or information that must be included in an application under this section.

(7) Regulations under subsection (6) are subject to the negative resolution procedure.

Commencement Information

I10 S. 4 not in force at Royal Assent, see s. 69

I11 S. 4 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(b)

I12 S. 4 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

5 Registration and allocation of overseas entity ID U.K.

(1) On the registration of an overseas entity under this Part, the registrar must—

(a) record the date of registration in the register,

(b) allocate an overseas entity ID to the entity, and

(c) record the overseas entity ID in the register.

(2) Overseas entity IDs are to be in such form, consisting of one or more sequences of figures or letters, as the registrar may determine.

(3) The registrar may adopt a new form of overseas entity ID and make such changes to existing overseas entity IDs as appear necessary.

(4) A change of an overseas entity ID has effect from the date on which the overseas entity is notified by the registrar of the change.

Commencement Information

I13 S. 5 not in force at Royal Assent, see s. 69

I14 S. 5 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(b)

I15 S. 5 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

6 Notice of registration U.K.

(1) On the registration of an overseas entity under this Part, the registrar must notify the overseas entity that it has been registered.

(2) The notice must state—

(a) the date of registration, and

(b) the overseas entity ID allocated to the entity.

(3) The notice must also contain information about—

(a) the updating duty under section 7 and the consequences of failing to comply with it;

(b) applying under section 9 for removal from the list of registered overseas entities.

Commencement Information

I16 S. 6 not in force at Royal Assent, see s. 69

I17 S. 6 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(b)

I18 S. 6 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Updating U.K.

7 Updating duty U.K.

(1) A registered overseas entity must, within the period of 14 days after each update period, deliver to the registrar—

(a) the statement and information listed in row 1, 2 or 3 of the table in section 4(2), and, where applicable, the statement and information mentioned in subsection (3),

(b) the statement in row 1 of the table set out in subsection (2) or the statement and information listed in row 2 of that table, and, where applicable, the statement and information mentioned in subsection (4),

(c) a statement that the entity has complied with section 12 (duty to take steps to identify registrable beneficial owners etc),

(d) anything required by regulations under section 16 (verification of registrable beneficial owners and managing officers) to be delivered to the registrar, and

(e) the name and contact details of an individual who may be contacted about the statements and information.

(2) This is the table referred to in subsection (1)(b)—

	Statement	Information
1	A statement that the entity has noreasonable cause to believe thatanyone has become or ceased to be aregistrable beneficial owner duringthe update period.
2	A statement that the entity has reasonable cause to believe that at least one person has become or ceased to be a registrable beneficial owner during the update period.	1. The required information about each person who has become or ceased to be a registrable beneficial owner during the update period, or so much of that information as the entity has been able to obtain. 2. The date on which each of them became or ceased to be a registrable beneficial owner, if the entity has been able to obtain that information.

(3) Where information provided under subsection (1)(a) includes information that a registrable beneficial owner is a trustee (see paragraphs 3(1)(f) and 5(1)(h) of Schedule 1), the overseas entity is also required by subsection (1)(a) to provide—

(a) the required information about the trust or so much of that information as the overseas entity has been able to obtain, and

(b) a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain.

(4) Where information provided under subsection (1)(b) includes information that a person who became or ceased to be a registrable beneficial owner was a trustee (see paragraphs 3(1)(f) and 5(1)(h) of Schedule 1), the overseas entity is also required by subsection (1)(b) to provide—

(a) the required information about the trust or so much of that information as the overseas entity has been able to obtain, and

(b) a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain.

(5) For the required information, see Schedule 1.

(6) The information required by subsection (1)(a), and any statements required by subsection (1)(a) or (b), must relate to the state of affairs as at the end of the update period.

(7) Any information required by subsection (1)(b) as a result of a person having become or ceased to be a registrable beneficial owner must relate to the time when the person became or ceased to be a registrable beneficial owner.

(8) A requirement in subsection (1) to provide information may be met (in whole or in part) by confirming information previously provided.

(9) For the purposes of this section, each of the following is an update period—

(a) the period of 12 months beginning with the date of the overseas entity’s registration;

(b) each period of 12 months beginning with the day after the end of the previous update period.

(10) But a registered overseas entity may shorten an update period by—

(a) notifying the registrar of the shortened update period, and

(b) delivering the statements and information required by subsection (1) within the period of 14 days after that shortened update period.

(11) The Secretary of State may by regulations amend this section for the purpose of changing the meaning of update period in this section.

(12) Regulations under this section are subject to the affirmative resolution procedure.

Commencement Information

I19 S. 7 not in force at Royal Assent, see s. 69

I20 S. 7 in force at 16.1.2023 by S.I. 2022/1039, reg. 3(a)

8 Failure to comply with updating duty U.K.

(1) If a registered overseas entity fails to comply with the duty under section 7 an offence is committed by—

(a) the entity, and

(b) every officer of the entity who is in default.

(2) A person guilty of an offence under subsection (1) is liable on summary conviction—

(a) in England and Wales to a fine and, for continued contravention, a daily default fine not exceeding the greater of £2,500 and one half of level 4 on the standard scale;

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one half of level 5 on the standard scale.

(3) The contravention continues until such time as the registered overseas entity has delivered the statements and information required by section 7(1).

(4) In the case of continued contravention, an offence is also committed by every officer of the registered overseas entity who did not commit an offence under subsection (1) in relation to the initial contravention but who is in default in relation to the continued contravention.

(5) A person guilty of an offence under subsection (4) is liable on summary conviction—

(a) in England and Wales, to a fine not exceeding the greater of £2,500 and one half of level 4 on the standard scale for each day on which the contravention continues and the person is in default;

(b) in Scotland or Northern Ireland, to a fine not exceeding one half of level 5 on the standard scale for each day on which the contravention continues and the person is in default.

Commencement Information

I21 S. 8 not in force at Royal Assent, see s. 69

I22 S. 8 in force at 16.1.2023 by S.I. 2022/1039, reg. 3(b)

Removal U.K.

9 Application for removal U.K.

(1) An application by a registered overseas entity for removal from the list of registered overseas entities must be delivered to the registrar and contain—

(a) a statement confirming that the entity is not registered as the proprietor of a relevant interest in land,

(b) the statement and information listed in row 1, 2 or 3 of the table in section 4(2), and, where applicable, the statement and information mentioned in subsection (3),

(c) the statement in row 1 of the table set out in subsection (2) or the statement and information listed in row 2 of that table, and, where applicable, the statement and information mentioned in subsection (4),

(d) a statement that the entity has complied with section 12 (duty to take steps to identify registrable beneficial owners etc),

(e) anything required by regulations under section 16 (verification of registrable beneficial owners and managing officers) to be delivered to the registrar, and

(f) the name and contact details of an individual who may be contacted about the application.

(2) This is the table referred to in subsection (1)(c)—

	Statement	Information
1	A statement that the entity has noreasonable cause to believe thatanyone has become or ceased to be aregistrable beneficial owner duringthe relevant period.
2	A statement that the entity has reasonable cause to believe that at least one person has become or ceased to be a registrable beneficial owner during the relevant period.	1. The required information about each person who has become or ceased to be a registrable beneficial owner during the relevant period, or so much of that information as the entity has been able to obtain. 2. The date on which each of them became or ceased to be a registrable beneficial owner, if the entity has been able to obtain that information.

(3) Where information provided under subsection (1)(b) includes information that a registrable beneficial owner is a trustee (see paragraphs 3(1)(f) and 5(1)(h) of Schedule 1), the overseas entity is also required by subsection (1)(b) to provide—

(a) the required information about the trust or so much of that information as the overseas entity has been able to obtain, and

(b) a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain.

(4) Where information provided under subsection (1)(c) includes information that a person who became or ceased to be a registrable beneficial owner was a trustee (see paragraphs 3(1)(f) and 5(1)(h) of Schedule 1), the overseas entity is also required by subsection (1)(c) to provide—

(a) the required information about the trust or so much of that information as the overseas entity has been able to obtain, and

(b) a statement as to whether the entity has any reasonable cause to believe that there is required information about the trust that it has not been able to obtain.

(5) For the required information, see Schedule 1.

(6) For the purposes of subsection (2) “the relevant period” means the period—

(a) beginning with the date of the overseas entity’s registration or (if later) the end of its last update period, and

(b) ending with the date of the application for removal.

(7) The information required by subsection (1)(b), and any statements required by subsection (1)(b) or (c), must relate to the state of affairs as at the time of the application for removal.

(8) Any information required by subsection (1)(c) as a result of a person having become or ceased to be a registrable beneficial owner must relate to the time when the person became or ceased to be a registrable beneficial owner.

(9) The requirement in subsection (1) to provide information may be met (in whole or in part) by confirming information previously provided.

(10) For the purposes of this section and section 10 an overseas entity is registered as the proprietor of a relevant interest in land if—

(a) the entity—

(i) is registered in the register of title kept under the Land Registration Act 2002 as the proprietor of a qualifying estate within the meaning of Schedule 4A to that Act, and

(ii) became so registered in pursuance of an application made on or after 1 January 1999,

(b) the entity—

(i) is entered, on or after 8 December 2014, as proprietor in the proprietorship section of the title sheet for a plot of land that is registered in the Land Register of Scotland,

(ii) in relation to a lease that was recorded in the General Register of Sasines or registered in the Land Register of Scotland before that date is, by virtue of an assignation of the lease registered in the Land Register of Scotland on or after that date, the tenant under the lease, or

(iii) is the tenant under a lease that was registered in the Land Register of Scotland on or after that date, or

(c) the entity—

(i) is registered in the register kept under the Land Registration Act (Northern Ireland) 1970 (c. 18 (N.I.)) as the owner of a qualifying estate within the meaning of Schedule 8A to that Act, and

(ii) became so registered on or after the day on which that Schedule came into force.

(11) In subsection (10)(b), “lease”, “plot of land” and “proprietor” have the meanings given by section 113(1) of the Land Registration etc. (Scotland) Act 2012 (asp 5).

(12) For the purposes of subsection (10)(b)(i)—

(a) the reference to an overseas entity’s being entered as proprietor in the proprietorship section of a title sheet is a reference to the name of the entity being so entered, and

(b) the date on which an overseas entity is entered as proprietor in the proprietorship section of a title sheet is, where the entry is made by virtue of an application for registration, the date of registration as determined under section 37 of the Land Registration etc. (Scotland) Act 2012 (date and time of registration).

Commencement Information

I23 S. 9 not in force at Royal Assent, see s. 69

I24 S. 9(1)-(9) in force at 12.10.2022 by S.I. 2022/1039, reg. 2(a)

I25 S. 9(10)-(12) in force at 5.9.2022 by S.I. 2022/876, reg. 4(b)

10 Processing of application under section 9 U.K.

(1) On receipt of an application by a registered overseas entity under section 9, the registrar must check whether the overseas entity is registered as the proprietor of a relevant interest in land (see subsection (10) of that section).

(2) If the overseas entity is not registered as the proprietor of a relevant interest in land, the registrar must remove it from the list of registered overseas entities.

(3) If the overseas entity is registered as the proprietor of a relevant interest in land, the registrar must refuse the application.

(4) The registrar must send the overseas entity a notice stating—

(a) whether the application for removal has been successful, and

(b) if it has been successful, the date of removal from the list of registered overseas entities.

(5) Where an overseas entity is removed from the list of registered overseas entities, the registrar must record the date of removal in the register.

Commencement Information

I26 S. 10 not in force at Royal Assent, see s. 69

I27 S. 10 in force at 12.10.2022 by S.I. 2022/1039, reg. 2(a)

11 Transfer of documents to Public Record Office U.K.

Where an overseas entity has been removed from the list of registered overseas entities for at least two years, the registrar may transfer any records relating to that entity to the Public Record Office.

Commencement Information

I28 S. 11 not in force at Royal Assent, see s. 69

I29 S. 11 in force at 12.10.2022 by S.I. 2022/1039, reg. 2(a)

Obtaining, updating and verifiying information U.K.

12 Identifying registrable beneficial owners U.K.

(1) An overseas entity must comply with this section before—

(a) making an application under section 4 for registration;

(b) complying with the updating duty under section 7;

(c) making an application under section 9 for removal.

(2) The overseas entity must take reasonable steps—

(a) to identify any registrable beneficial owners in relation to the entity, and

(b) if it identifies any, to obtain, for the purposes of the application under section 4 or 9 or for the purposes of complying with the updating duty under section 7—

(i) the required information about each registrable beneficial owner, and

(ii) in respect of any registrable beneficial owner who is a trustee, the required information about the trust.

(3) The steps that an overseas entity must take include giving an information notice under this section to any person that it knows, or has reasonable cause to believe, is a registrable beneficial owner in relation to the entity.

(4) An information notice under this section is a notice requiring the person to whom it is given—

(a) to state whether or not the person is a registrable beneficial owner in relation to the overseas entity,

(b) if the person is a registrable beneficial owner, to confirm or correct any of the required information about the person that is specified in the notice and to supply any of the required information that the notice states the overseas entity does not already have, and

(c) if the person is a registrable beneficial owner by virtue of being a trustee, to confirm or correct any of the required information about the trust that is specified in the notice and to supply any of the required information about the trust that the notice states the overseas entity does not already have.

(5) An information notice under this section must require the person to whom it is given to comply with the notice within the period of one month beginning with the day on which it is given.

Commencement Information

I30 S. 12 not in force at Royal Assent, see s. 69

I31 S. 12 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(c)

I32 S. 12 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

13 Additional powers to obtain information U.K.

(1) An overseas entity may give a person an information notice under this section if it knows or has reasonable cause to believe that the person knows the identity of—

(a) a person who is a registrable beneficial owner in relation to the overseas entity,

(b) any legal entity not falling within paragraph (a) that is a beneficial owner in relation to the overseas entity, or

(c) a person likely to have knowledge of the identity of a person within paragraph (a) or (b).

(2) An information notice under this section is a notice requiring the addressee—

(a) to state whether or not the addressee knows the identity of a person within paragraph (a), (b) or (c) of subsection (1), and

(b) if so—

(i) to supply any information that the addressee has that might help the overseas entity to identify that person, and

(ii) to state whether that information is being supplied with the knowledge of the person to whom it relates.

(3) An information notice under this section must require the person to whom it is given to comply with the notice within the period of one month beginning with the day on which it is given.

(4) A person given a notice under subsection (1) is not required by that notice to disclose any information in respect of which a claim to legal professional privilege or, in Scotland, confidentiality of communications, could be maintained in legal proceedings.

(5) In this section a reference to knowing the identity of a person includes knowing information from which that person can be identified.

Commencement Information

I33 S. 13 not in force at Royal Assent, see s. 69

I34 S. 13 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(c)

I35 S. 13 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

14 Sections 12 and 13: supplementary U.K.

(1) The Secretary of State may by regulations make further provision about the giving of notices under section 12 or 13, including provision about the form and content of any such notices and the manner in which they must be given.

(2) Regulations under subsection (1) are subject to the negative resolution procedure.

Commencement Information

I36 S. 14 not in force at Royal Assent, see s. 69

I37 S. 14 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(c)

I38 S. 14 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

15 Failure to comply with notice under section 12 or 13 U.K.

(1) A person who, without reasonable excuse, fails to comply with a notice under section 12 or 13 commits an offence.

(2) A person who is given a notice under section 12 or 13 commits an offence if, in purported compliance with the notice, the person—

(a) makes a statement that the person knows to be false in a material particular, or

(b) recklessly makes a statement that is false in a material particular.

(3) Where an offence under subsection (1) or (2) is committed by a legal entity, the offence is also committed by every officer of the entity who is in default.

(4) A person does not commit an offence under subsection (1), or under subsection (3) as it applies in relation to subsection (1), if the person proves that the requirement to give information was frivolous or vexatious.

(5) A person guilty of an offence under this section is liable—

(a) on summary conviction in England and Wales, to imprisonment for the maximum summary term for either-way offences or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).

(6) In subsection (5)(a) “the maximum summary term for either-way offences” means—

(a) in relation to an offence committed before the time when paragraph 24(2) of Schedule 22 to the Sentencing Act 2020 comes into force, 6 months;

(b) in relation to an offence committed after that time, 12 months.

Commencement Information

I39 S. 15 not in force at Royal Assent, see s. 69

I40 S. 15 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(c)

I41 S. 15 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

16 Verification of registrable beneficial owners and managing officers U.K.

(1) The Secretary of State must by regulations make provision requiring the verification of information before an overseas entity—

(a) makes an application under section 4 for registration;

(b) complies with the updating duty under section 7;

(c) makes an application under section 9 for removal.

(2) Regulations under this section may, among other things, make provision—

(a) about the information that must be verified;

(b) about the person by whom the information must be verified;

(c) requiring a statement, evidence or other information to be delivered to the registrar for the purposes of sections 4(1)(c), 7(1)(d) and 9(1)(e).

(3) The first regulations under this section must be made so as to come into force before any applications may be made under section 4(1).

(4) Regulations under this section are subject to the negative resolution procedure.

Commencement Information

I42 S. 16 not in force at Royal Assent, see s. 69

I43 S. 16 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(c)

I44 S. 16 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Exemptions U.K.

17 Power to modify application process etc in certain cases U.K.

(1) The Secretary of State may by regulations modify the application requirements or the update requirements in relation to overseas entities of a description specified in the regulations.

(2) The regulations may modify the application or update requirements in relation to a description of overseas entity only if the Secretary of State considers that the modifications are appropriate in light of the information that is publicly available otherwise than by virtue of this Part.

(3) Regulations under subsection (1) may make such modifications to this Part as are consequential on those regulations.

(4) Regulations under subsection (1) are subject to the negative resolution procedure.

(5) In this section—

• “the application requirements” means the requirements as to the contents of applications under section 4 or 9;

• “the update requirements” means the requirements as to the material that must be delivered to the registrar under section 7.

Commencement Information

I45 S. 17 not in force at Royal Assent, see s. 69

I46 S. 17 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(d)

I47 S. 17 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

18 Exemptions U.K.

(1) The Secretary of State may, by giving written notice to a person, exempt the person under this section if satisfied that to do so is necessary—

(a) in the interests of national security;

(b) for the purposes of preventing or detecting serious crime.

(2) The effect of an exemption is that—

(a) overseas entities are not required to take steps or give notices under section 12 in relation to the exempt person,

(b) the exempt person is not required to comply with any notice given by an overseas entity under section 12 or 13 if the exempt person brings the existence of the exemption to the attention of the entity,

(c) a notice given by an overseas entity under section 13 does not require any other person to supply information about the exempt person, and

(d) the exempt person does not count as a registrable beneficial owner in relation to any overseas entity for the purposes of this Part.

(3) For the purposes of subsection (1)(b)—

(a) “crime” means conduct which—

(i) constitutes a criminal offence, or

(ii) is, or corresponds to, any conduct which, if it all took place in any one part of the United Kingdom, would constitute a criminal offence, and

(b) crime is “serious” if—

(i) the offence which is or would be constituted by the conduct is an offence for which the maximum sentence (in any part of the United Kingdom) is imprisonment for 3 years or more, or

(ii) the conduct involves the use of violence, results in substantial financial gain or is conduct by a large number of persons in pursuit of a common purpose.

Commencement Information

I48 S. 18 not in force at Royal Assent, see s. 69

I49 S. 18 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(d)

I50 S. 18 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Language requirement U.K.

19 Documents to be in English U.K.

Documents delivered to the registrar under this Part, or under regulations made under it, must be drawn up and delivered in English.

Commencement Information

I51 S. 19 not in force at Royal Assent, see s. 69

I52 S. 19 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(e)

I53 S. 19 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Annotation of the register U.K.

20 Annotation of the register U.K.

(1) The registrar must place a note in the register recording—

(a) the date on which a document is delivered to the registrar under this Part or regulations made under it, or otherwise in connection with the register;

(b) if a document is replaced (whether or not material derived from it is removed), the fact that it has been replaced and the date of delivery of the replacement;

(c) if material is removed—

(i) what was removed (giving a general description of its contents),

(ii) under what power, and

(iii) the date on which that was done.

(2) The Secretary of State may by regulations make provision—

(a) authorising or requiring the registrar to annotate the register in such other circumstances as may be specified in the regulations, and

(b) as to the contents of any such annotation.

(3) No annotation is required in the case of a document that by virtue of section 1072(2) of the Companies Act 2006 (documents not meeting requirements for proper delivery) is treated as not having been delivered.

(4) A note may be removed if it no longer serves any useful purpose.

(5) Any duty or power of the registrar with respect to annotation of the register is subject to the court’s power under section 31 (powers of court on ordering removal of material from the register) to direct—

(a) that a note be removed from the register, or

(b) that no note may be made of the removal of material that is the subject of the court’s order.

(6) Regulations under this section are subject to the negative resolution procedure.

Modifications etc. (not altering text)

C1 S. 20 modified (1.8.2022) by The Register of Overseas Entities (Verification and Provision of Information) Regulations 2022 (S.I. 2022/725), regs. 1(1), 11

Commencement Information

I54 S. 20 not in force at Royal Assent, see s. 69

I55 S. 20 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(f)

I56 S. 20 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Inspection of the register and protection of information U.K.

21 Inspection and copies of register U.K.

(1) Any person may—

(a) inspect the register (but see the exceptions in section 22);

(b) require a copy of any material on the register that is available for inspection.

(2) The registrar may specify the form and manner in which an application is to be made for inspection or a copy.

(3) The registrar may determine the form and manner in which copies are to be provided.

(4) Section 1091 of the Companies Act 2006 (certification of copies), and any regulations made under it, apply in relation to copies provided under this section as they apply in relation to the copies provided as mentioned in that section.

Commencement Information

I57 S. 21 not in force at Royal Assent, see s. 69

I58 S. 21 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I59 S. 21 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

22 Material unavailable for inspection U.K.

(1) The following material must not be made available by the registrar for public inspection—

(a) any date of birth or residential address information protected under subsection (2),

(b) the name or contact details of an individual delivered to the registrar under section 4(1)(d) (application for registration), 7(1)(e) (updating duty) or 9(1)(f) (application for removal),

(c) any required information about a trust delivered to the registrar by virtue of section 4(3), 7(3) or (4) or 9(3) or (4) (required information about trusts),

(d) information that, by virtue of regulations under section 25 (power to protect other information), the registrar must omit from the material on the register that is available for inspection,

(e) any application or other document delivered to the registrar under section 29 (application for rectification of register),

(f) any court order under section 30 (rectification of the register under court order) that the court has directed under section 31 is not to be made available for public inspection, and

(g) any email address, identification code or password deriving from a document delivered for the purpose of authorising or facilitating electronic filing procedures or providing information by telephone.

(2) Date of birth information or residential address information is “protected” if—

(a) it relates to a registrable beneficial owner or managing officer in relation to an overseas entity,

(b) it is contained in a document delivered to the registrar in which date of birth information or residential address information is required to be stated,

(c) in the case of a document having more than one part, it is contained in a part of the document in which date of birth information or residential address information is required to be stated, and

(d) it is not information about a trust delivered to the registrar by virtue of section 4(3), 7(3) or (4) or 9(3) or (4).

(3) In this section—

• “date of birth information” means information as to the day of the month on which an individual was born (but not the month or year);

• “residential address information” means—

  (a)

  information as to the usual residential address of an individual, or

  (b)

  information that the service address of an individual is the individual’s usual residential address.

(4) Nothing in this section obliges the registrar to check documents other than those mentioned in subsection (2)(b), or parts of documents other than those mentioned in subsection (2)(c), to ensure the absence of date of birth information or residential address information.

Modifications etc. (not altering text)

C2 S. 22 modified by S.I. 2017/692, reg. 30A(6) (as substituted (1.4.2023) by The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (S.I. 2022/860), regs. 1(4), 9(h))

Commencement Information

I60 S. 22 not in force at Royal Assent, see s. 69

I61 S. 22 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I62 S. 22 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

23 Disclosure of information about trusts U.K.

(1) This section applies to information delivered to the registrar by virtue of section 4(3), 7(3) or (4) or 9(3) or (4) (required information about trusts).

(2) The registrar may not disclose the information unless—

(a) the same information is made available by the registrar for public inspection otherwise than by virtue of being delivered to the registrar by virtue of a provision mentioned in subsection (1), or

(b) the disclosure is permitted by subsection (3).

(3) The registrar may disclose the information to—

(a) the Commissioners for Her Majesty’s Revenue and Customs, or

(b) any other person who—

(i) has functions of a public nature, and

(ii) is specified for the purposes of this section by regulations made by the Secretary of State.

(4) Regulations under this section are subject to the negative resolution procedure.

Commencement Information

I63 S. 23 not in force at Royal Assent, see s. 69

I64 S. 23 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I65 S. 23 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

24 Disclosure of protected information U.K.

(1) The registrar must not disclose protected date of birth information or protected residential address information about a person unless—

(a) the same information about the person (whether in the same or a different capacity) is made available by the registrar for public inspection as a result of being contained in another description of document in relation to which no restriction under section 22 applies, or

(b) disclosure is permitted by subsection (2).

(2) The registrar may disclose protected date of birth information or residential address information to any person who—

(a) has functions of a public nature, and

(b) is specified for the purposes of this section by regulations made by the Secretary of State.

(3) The Secretary of State may by regulations make provision—

(a) specifying conditions for the disclosure of protected date of birth information or residential address information in accordance with this section, and

(b) providing for the charging of fees.

(4) This section does not apply to protected date of birth information, or protected residential address information, about a person in their capacity as a registrable beneficial owner or managing officer if an application under regulations made under section 25 has been granted in respect of that information and has not been revoked.

(5) In this section—

• “date of birth information” has the meaning given by section 22(3);

• “protected” has the meaning given by section 22(2);

• “residential address information” has the meaning given by section 22(3).

(6) Regulations under this section are subject to the negative resolution procedure.

Commencement Information

I66 S. 24 not in force at Royal Assent, see s. 69

I67 S. 24 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I68 S. 24 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

25 Power to protect other information U.K.

(1) The Secretary of State may by regulations make provision requiring the registrar, on application—

(a) to make information relating to a relevant individual unavailable for public inspection, and

(b) to refrain from disclosing that information or to refrain from doing so except in specified circumstances.

(2) In this section “relevant individual” means an individual who is or used to be—

(a) a registrable beneficial owner in relation to an overseas entity, or

(b) a managing officer of an overseas entity.

(3) Regulations under this section may make provision as to—

(a) who may make an application,

(b) the grounds on which an application may be made,

(c) the information to be included in and documents to accompany an application,

(d) how an application is to be determined,

(e) the recording of restrictions in the register,

(f) the duration of and procedures for revoking the restrictions on disclosure, and

(g) the charging of fees by the registrar for disclosing information where the regulations permit disclosure, by way of exception, in specified circumstances.

(4) The provision that may be made under subsection (3)(d) or (f) includes provision—

(a) conferring a discretion on the registrar;

(b) providing for a question to be referred to a person other than the registrar for the purposes of determining the application or revoking the restrictions.

(5) Regulations under this section may impose a duty on the registrar to publish, in relation to such periods as may be specified—

(a) details of how many applications have been made under the regulations and how many of them have been allowed, and

(b) such other details in connection with applications under the regulations as may be specified in the regulations.

(6) Regulations under this section are subject to the affirmative resolution procedure.

(7) Nothing in this section or in regulations made under it affects the disclosure of information about a person in any capacity other than that mentioned in subsection (2).

Commencement Information

I69 S. 25 not in force at Royal Assent, see s. 69

I70 S. 25 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I71 S. 25 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

26 Data protection U.K.

(1) Nothing in section 21, 23 or 24 authorises or requires a disclosure of information which, although made in accordance with that section, would contravene the data protection legislation.

(2) In this section “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).

Commencement Information

I72 S. 26 not in force at Royal Assent, see s. 69

I73 S. 26 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(g)

I74 S. 26 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Correction or removal of material on the register U.K.

27 Resolving inconsistencies in the register U.K.

(1) Where it appears to the registrar that the information contained in a document delivered to the registrar is inconsistent with other information on the register, the registrar may give notice to the overseas entity to which the document relates—

(a) stating in what respects the information contained in it appears to be inconsistent with other information on the register, and

(b) requiring the overseas entity to take steps to resolve the inconsistency.

(2) The notice must—

(a) state the date on which it is issued, and

(b) require the delivery to the registrar, within 14 days after that date, of such replacement or additional documents as may be required to resolve the inconsistency.

(3) If the necessary documents are not delivered within the period specified, an offence is committed by—

(a) the overseas entity, and

(b) every officer of the overseas entity who is in default.

(4) A person guilty of an offence under subsection (3) is liable on summary conviction—

(a) in England and Wales, to a fine and, for continued contravention, a daily default fine not exceeding the greater of £2,500 and one half of level 4 on the standard scale;

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one half of level 5 on the standard scale.

Commencement Information

I75 S. 27 not in force at Royal Assent, see s. 69

I76 S. 27 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(h)

I77 S. 27 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

28 Administrative removal of material from register U.K.

(1) The registrar may remove from the register—

(a) anything that there was power, but no duty, to include;

(b) anything listed in section 22(1) (material unavailable for public inspection), if it no longer appears to the registrar reasonably necessary for the purposes for which it was delivered to the registrar.

(2) The power in subsection (1)(a) is exercisable, in particular, so as to remove—

(a) unnecessary material within the meaning of section 1074 of the Companies Act 2006,

(b) material derived from a document that has been replaced under section 1076 of that Act (replacement of document not meeting requirements for proper delivery), or

(c) material derived from a document that has been replaced under section 27.

(3) On or before removing any material under subsection (1)(a) (otherwise than at the request of the overseas entity) the registrar must give notice—

(a) to the person by whom the material was delivered (if the identity, and name and address of that person are known), or

(b) to the overseas entity to which the material relates (if notice cannot be given under paragraph (a) and the identity of that overseas entity is known).

(4) The notice must—

(a) state what material the registrar proposes to remove, or has removed, and on what grounds, and

(b) state the date on which it is issued.

Modifications etc. (not altering text)

C3 S. 28 modified (1.8.2022) by The Register of Overseas Entities (Verification and Provision of Information) Regulations 2022 (S.I. 2022/725), regs. 1(1), 12

Commencement Information

I78 S. 28 not in force at Royal Assent, see s. 69

I79 S. 28 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(h)

I80 S. 28 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

29 Application to rectify register U.K.

(1) The Secretary of State may by regulations make provision requiring the registrar, on application, to remove from the register material of a description specified in the regulations that—

(a) derives from anything invalid or ineffective or that was done without the authority of the overseas entity, or

(b) is factually inaccurate, or is derived from something that is factually inaccurate, or forged.

(2) The regulations may make provision as to—

(a) who may make an application,

(b) the information to be included in and documents to accompany an application,

(c) the notice to be given of an application and of its outcome,

(d) a period in which objections to an application may be made, and

(e) how an application is to be determined.

(3) An application must—

(a) specify what is to be removed from the register and indicate where on the register it is, and

(b) be accompanied by a statement that the material specified in the application complies with this section and the regulations.

(4) If no objections are made to the application, the registrar may accept the statement as sufficient evidence that the material specified in the application should be removed from the register.

(5) Regulations under this section are subject to the affirmative resolution procedure.

Commencement Information

I81 S. 29 not in force at Royal Assent, see s. 69

I82 S. 29 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(h)

I83 S. 29 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

[F1 29A.

(1) This section applies where—

(a) a material discrepancy in information relating to any registrable beneficial owner is reported to the registrar under regulation 30A(2) or (2B) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (requirement to report discrepancies in information about beneficial ownership), and

(b) the registrar determines, having investigated under regulation 30A(5) of those Regulations, that there is a material discrepancy.

(2) The registrar may remove material from the register if doing so is necessary to resolve the discrepancy.]

Textual Amendments

F1 S. 29A inserted (1.4.2023) by The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (S.I. 2022/860), regs. 1(4), 17

30 Court order to rectify register U.K.

(1) The registrar must remove from the register any material—

(a) that derives from anything that the court has declared to be invalid or ineffective, or to have been done without the authority of the overseas entity, or

(b) that a court declares to be factually inaccurate, or to be derived from something that is factually inaccurate, or forged,

and that the court directs should be removed from the register.

(2) The court order must specify what is to be removed from the register and indicate where on the register it is.

(3) A copy of the court’s order must be sent to the registrar for registration.

Modifications etc. (not altering text)

C4 S. 30 modified (1.8.2022) by The Register of Overseas Entities (Verification and Provision of Information) Regulations 2022 (S.I. 2022/725), regs. 1(1), 13

Commencement Information

I84 S. 30 not in force at Royal Assent, see s. 69

I85 S. 30 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(h)

I86 S. 30 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

31 Court powers on ordering removal of material from the register U.K.

(1) Where the court makes an order for the removal of anything from the register under section 30, it may give directions under this section.

(2) It may direct that any note on the register that is related to the material that is the subject of the court’s order is to be removed from the register.

(3) It may direct that its order is not to be available for public inspection as part of the register.

(4) It may direct—

(a) that no note is to be made on the register as a result of its order, or

(b) that any such note is to be restricted to such matters as may be specified by the court in the direction.

(5) The court must not give any direction under this section unless it is satisfied—

(a) that—

(i) the presence on the register of the note or, as the case may be, of an unrestricted note, or

(ii) the availability for public inspection of the court’s order,

may cause damage to the overseas entity, and

(b) that the overseas entity’s interest in non-disclosure outweighs any interest of other persons in disclosure.

(6) In this section “note” means a note placed in the register under section 20 or regulations made under it.

Commencement Information

I87 S. 31 not in force at Royal Assent, see s. 69

I88 S. 31 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(h)

I89 S. 31 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

False statements U.K.

32 General false statement offence U.K.

(1) It is an offence for a person, without reasonable excuse, to—

(a) deliver or cause to be delivered to the registrar for the purposes of this Part any document that is misleading, false or deceptive in a material particular, or

(b) make to the registrar, for the purposes of this Part, any statement that is misleading, false or deceptive in a material particular.

(2) An offence under this section is aggravated if, when the document or statement is delivered, the person knows that it is misleading, false or deceptive in a material particular.

(3) A person guilty of an offence under this section, other than an aggravated offence, is liable —

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale;

(c) on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(4) A person guilty of an aggravated offence under this section is liable—

(a) on summary conviction in England and Wales, to imprisonment for the maximum summary term for either-way offences or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).

(5) In subsection (4)(a) “the maximum summary term for either-way offences” means—

(a) in relation to an offence committed before the time when paragraph 24(2) of Schedule 22 to the Sentencing Act 2020 comes into force, 6 months;

(b) in relation to an offence committed after that time, 12 months.

Commencement Information

I90 S. 32 not in force at Royal Assent, see s. 69

I91 S. 32 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(i)

I92 S. 32 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Land ownership and transactions U.K.

33 Land ownership and transactions U.K.

(1) Schedule 3 contains amendments about—

(a) the ownership of registered land in England and Wales by overseas entities, and

(b) land transactions in England and Wales involving overseas entities.

(2) Schedule 4—

(a) makes similar provision for Scotland, and

(b) confers a related power to make further or alternative provision (see Part 3 of the Schedule).

(3) Schedule 5 makes similar provision for Northern Ireland.

(4) The Secretary of State may by regulations amend Schedule 8A to the Land Registration Act (Northern Ireland) 1970 (inserted by Schedule 5 to this Act) to make provision similar or corresponding to the provision made by paragraphs 3(2)(e), 4(2)(e) and 5 of Schedule 4A to the Land Registration Act 2002 (inserted by Schedule 3 to this Act) (including the provision to make subordinate legislation).

(5) The provision which may be made by regulations under subsection (4) by virtue of section 67(3) includes provision amending other provisions of the Land Registration (Northern Ireland) Act 1970.

(6) The Secretary of State must consult the Department of Finance in Northern Ireland before making regulations under subsection (4).

(7) Regulations under subsection (4) are subject to the affirmative resolution procedure.

Commencement Information

I93 S. 33 not in force at Royal Assent, see s. 69

I94 S. 33 in force at 5.9.2022 by S.I. 2022/876, reg. 4(a)

34 Power to require overseas entity to register if it owns certain land U.K.

(1) The Secretary of State may by notice require an overseas entity to apply for registration in the register of overseas entities within the period of 6 months beginning with the date of the notice if at the time the notice is given—

(a) the entity is registered as the proprietor of a relevant interest in land within the meaning given by section 9(10), and

(b) the entity is not registered as an overseas entity, has not made an application for registration that is pending and is not an exempt overseas entity.

(2) A notice under subsection (1) lapses if, before the end of the period mentioned there, the overseas entity—

(a) ceases to be registered as the proprietor of a relevant interest in land within the meaning given by section 9(10), or

(b) becomes an exempt overseas entity.

(3) If an overseas entity fails to comply with a notice under subsection (1), an offence is committed by—

(a) the entity, and

(b) every officer of the entity who is in default.

(4) A person guilty of an offence under subsection (3) is liable—

(a) on summary conviction in England and Wales, to imprisonment for the maximum summary term for either-way offences or a fine (or both);

(b) on summary conviction in Scotland, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both);

(c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months or a fine not exceeding the statutory maximum (or both);

(d) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both).

(5) In subsection (4)(a) “the maximum summary term for either-way offences” means—

(a) in relation to an offence committed before the time when paragraph 24(2) of Schedule 22 to the Sentencing Act 2020 comes into force, 6 months;

(b) in relation to an offence committed after that time, 12 months.

(6) In this section “exempt overseas entity” means an overseas entity of such description as may be specified in regulations made by the Secretary of State for the purposes of this section.

(7) Regulations under subsection (6) are subject to the affirmative resolution procedure.

Commencement Information

I95 S. 34 not in force at Royal Assent, see s. 69

I96 S. 34 in force at 5.9.2022 by S.I. 2022/876, reg. 4(a)

Supplementary provision about offences U.K.

35 Liability of officers in default U.K.

(1) Sections 1121 to 1123 of the Companies Act 2006 (liability of officers in default: interpretation etc) apply for the purposes of any provision made by this Part as they apply for the purposes of provisions of the Companies Acts.

(2) In those sections as applied, a reference to an officer includes a person in accordance with whose directions or instructions the board of directors or equivalent management body of a legal entity are accustomed to act.

(3) A person is not to be regarded as falling within subsection (2) by reason only that the board of directors or equivalent management body acts on advice given by the person in a professional capacity.

Commencement Information

I97 S. 35 not in force at Royal Assent, see s. 69

I98 S. 35 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(j)

I99 S. 35 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

36 Meaning of “daily default fine” U.K.

Section 1125 of the Companies Act 2006 (meaning of “daily default fine”) applies for purpose of any provision made by this Part as it applies for the purposes of provisions of the Companies Acts.

Commencement Information

I100 S. 36 not in force at Royal Assent, see s. 69

I101 S. 36 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(j)

I102 S. 36 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

37 Consent required for prosecutions U.K.

Proceedings for an offence under this Part—

(a) may not be brought in England and Wales except by or with the consent of the Secretary of State or the Director of Public Prosecutions;

(b) may not be brought in Northern Ireland except by or with the consent of the Secretary of State or the Director of Public Prosecutions for Northern Ireland.

Commencement Information

I103 S. 37 not in force at Royal Assent, see s. 69

I104 S. 37 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(j)

I105 S. 37 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

38 Further provision about proceedings U.K.

The following provisions of the Companies Act 2006 apply in relation to offences under this Part as they apply in relation to offences under the Companies Acts—

(a) section 1128 (summary proceedings: time limits);

(b) section 1130 (proceedings against unincorporated bodies).

Commencement Information

I106 S. 38 not in force at Royal Assent, see s. 69

I107 S. 38 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(j)

I108 S. 38 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Financial penalties U.K.

39 Financial penalties U.K.

(1) The Secretary of State may by regulations make provision conferring power on the registrar to impose a financial penalty on a person if satisfied, beyond reasonable doubt, that the person has engaged in conduct amounting to an offence under this Part.

(2) The regulations may include provision—

(a) about the procedure to be followed in imposing penalties;

(b) about the amount of penalties;

(c) for the imposition of interest or additional penalties for late payment;

(d) conferring rights of appeal against penalties;

(e) about the enforcement of penalties.

(3) The provision that may be made about enforcement includes—

(a) in relation to England and Wales or Northern Ireland, provision for unpaid amounts to be secured by a charge on an interest in land (including provision about the priority of any such charge), and

(b) in relation to Scotland, provision for penalties to be enforced in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

(4) The regulations must provide that—

(a) no financial penalty may be imposed under the regulations on a person in respect of conduct amounting to an offence if the person has been convicted of that offence in respect of that conduct, and

(b) no proceedings may be brought or continued against a person in respect of conduct amounting to an offence if the person has been given a financial penalty under the regulations in respect of that conduct.

(5) Amounts recovered by the registrar under the regulations are to be paid into the Consolidated Fund.

(6) The provision which may be made by regulations under this section by virtue of section 67(3) includes provision amending provision made by or under any of the following, whenever passed or made—

(a) an Act;

(b) an Act of the Scottish Parliament;

(c) Northern Ireland legislation.

(7) Regulations under this section are subject to the affirmative resolution procedure.

(8) In this section “conduct” means an act or omission.

Commencement Information

I109 S. 39 not in force at Royal Assent, see s. 69

I110 S. 39 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(k)

I111 S. 39 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Sharing of information by HMRC U.K.

40 Sharing of information by HMRC U.K.

(1) The Commissioners for Her Majesty’s Revenue and Customs may disclose information to the Secretary of State or the registrar for the purpose of the taking of action in connection with an offence under this Part.

(2) For the purposes of this section, the taking of action in connection with an offence under this Part includes any of the following—

(a) investigating whether an offence has been committed;

(b) prosecuting an offence;

(c) imposing financial penalties for conduct amounting to an offence.

(3) A person who receives information as a result of this section—

(a) may not use the information other than for the purpose of the taking of action in connection with an offence under this Part;

(b) may not further disclose the information unless the disclosure is necessary for the taking of action in connection with an offence under this Part.

(4) It is an offence for a person to disclose, in contravention of subsection (3)(b), any revenue and customs information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it.

(5) It is a defence for a person charged with an offence under subsection (4) to prove that the person reasonably believed—

(a) that the disclosure was lawful, or

(b) that the information had already lawfully been made available to the public.

(6) Subsections (4) to (7) of section 19 of the Commissioners for Revenue and Customs Act 2005 apply to an offence under subsection (4) as they apply to an offence under that section.

(7) In this section “revenue and customs information relating to a person” has the same meaning as in section 19 of the Commissioners for Revenue and Customs Act 2005 (see section 19(2) of that Act).

Commencement Information

I112 S. 40 not in force at Royal Assent, see s. 69

I113 S. 40 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(l)

I114 S. 40 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Transitional provision U.K.

41 Applications in the transitional period: information about land transactions U.K.

(1) This section applies where an overseas entity makes an application under section 4 for registration before the end of the transitional period.

(2) If the entity has not made any relevant dispositions of land during the period—

(a) beginning with 28 February 2022, and

(b) ending with the making of the application,

the application must include a statement to that effect.

(3) If the entity has made any relevant dispositions of land during the period mentioned in subsection (2), the application must include—

(a) the required information about each relevant disposition of land made during that period (see subsection (5)),

(b) in relation to each such disposition, the statements and information mentioned in paragraphs (a), (b) and (c) of section 4(1) expressed by reference to the state of affairs immediately before the making of the disposition, and

(c) a statement that all of the information required by paragraphs (a) and (b) of this subsection has been included in the application.

(4) In this section “relevant disposition of land”, in relation to an overseas entity, means—

(a) a registrable disposition of a qualifying estate within section 27(2)(a), (b)(i) or (f) of the Land Registration Act 2002 other than—

(i) a disposition made in pursuance of a statutory obligation or court order, or occurring by operation of law, or

(ii) a disposition made by a specified insolvency practitioner in specified circumstances (within the meaning of paragraph 3(3) of Schedule 4A to the Land Registration Act 2002, as inserted by Schedule 3 to this Act);

(b) the delivery by the entity of a qualifying registrable deed granted by it where the entity’s interest in respect of which the deed was granted was registered in the Land Register of Scotland on or after 8 December 2014, unless the deed was granted—

(i) in pursuance of a statutory obligation or court order, or

(ii) by a specified insolvency practitioner in specified circumstances (within the meaning of paragraph 2(5) of schedule 1A of the Land Registration etc. (Scotland) Act 2012, as inserted by Schedule 4 to this Act).

(5) The required information about a relevant disposition of land is—

(a) where the relevant disposition of land is within subsection (4)(a)—

(i) the date of disposition, and

(ii) the registered title number of the qualifying estate;

(b) where the relevant disposition of land is within subsection (4)(b)—

(i) the date of delivery of the deed, and

(ii) the title number of the title sheet in which the entity’s interest is entered.

(6) In subsection (4)(a) “qualifying estate” means—

(a) a freehold estate in land, or

(b) a leasehold estate in land granted for a term of more than seven years from the date of grant,

of which the overseas entity became a registered proprietor in pursuance of an application made on or after 1 January 1999.

(7) In subsection (6) “registered proprietor” in relation to an estate means the person entered as proprietor of the estate in the register of title kept by the Chief Land Registrar.

(8) In subsection (4)(b) “qualifying registrable deed” means a registrable deed (within the meaning of the Land Registration etc. (Scotland) Act 2012) which is—

(a) a disposition,

(b) a standard security,

(c) a lease (including a sub-lease), or

(d) an assignation of a lease (including a sub-lease).

(9) For the purposes of subsection (4)(b), a qualifying registrable deed is to be treated, as at the date of delivery, as having been granted even if at that time it has been executed by the overseas entity only.

(10) In this section “the transitional period” means the period of 6 months beginning with the day on which section 3(1) comes fully into force.

Commencement Information

I115 S. 41 not in force at Royal Assent, see s. 69

I116 S. 41 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(m)

I117 S. 41 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

42 Requirement for certain unregistered overseas entities to provide information U.K.

(1) An overseas entity, and every officer of the entity who is in default, commits an offence if—

(a) at any time during the period beginning with 28 February 2022 and ending with the end of the transitional period, the entity has made a relevant disposition of land,

(b) at the end of the transitional period the entity—

(i) is not registered as an overseas entity,

(ii) has not made an application for registration as an overseas entity that is pending, and

(iii) is not an exempt overseas entity, and

(c) the entity has not, after making the relevant disposition of land and before the end of the transitional period, delivered to the registrar—

(i) statements and information of the kind mentioned in paragraphs (a), (b), (c) and (d) of section 4(1), expressed by reference to the state of affairs immediately before the making of the relevant disposition of land, and

(ii) the required information about the relevant disposition of land (within the meaning of section 41(5)).

(2) A person guilty of an offence under subsection (1) is liable on summary conviction—

(a) in England and Wales to a fine and, for continued contravention, a daily default fine not exceeding the greater of £2,500 and one half of level 4 on the standard scale;

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one half of level 5 on the standard scale.

(3) The contravention continues until such time as the overseas entity has delivered the statements and information mentioned in subsection (1)(c).

(4) In the case of continued contravention, an offence is also committed by every officer of the overseas entity who did not commit an offence under subsection (1) in relation to the initial contravention but who is in default in relation to the continued contravention.

(5) A person guilty of an offence under subsection (4) is liable on summary conviction—

(a) in England and Wales, to a fine not exceeding the greater of £2,500 and one half of level 4 on the standard scale for each day on which the contravention continues and the person is in default;

(b) in Scotland or Northern Ireland, to a fine not exceeding one half of level 5 on the standard scale for each day on which the contravention continues and the person is in default.

(6) In this section—

• “exempt overseas entity” means an entity of a description specified in regulations under section 34(6);

• “relevant disposition of land” has the meaning given by section 41(4);

• “transitional period” has the meaning given by section 41(10).

Commencement Information

I118 S. 42 not in force at Royal Assent, see s. 69

I119 S. 42 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(m)

I120 S. 42 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

43 Section 42: supplementary U.K.

(1) Section 12 has effect as if—

(a) subsection (1) included a reference to an overseas entity being under a duty to comply with that section before delivering statements and information under section 42(1)(c)(i);

(b) subsection (2) included a reference to obtaining information for the purposes of section 42(1)(c)(i).

(2) The Secretary of State may by regulations make further provision in connection with—

(a) the provision of information under section 42(1)(c),

(b) the verification of that information, or

(c) the processing of that information by the registrar,

including provision modifying any provision made by or under this Part or applying any provision made by or under this Part with modifications.

(3) Regulations under this section are subject to the negative resolution procedure.

Commencement Information

I121 S. 43 not in force at Royal Assent, see s. 69

I122 S. 43 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(m)

I123 S. 43 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

Interpretation U.K.

44 Interpretation U.K.

(1) In this Part—

• “beneficial owner”, in relation to an overseas entity, has the meaning given by Part 2 of Schedule 2;

• “the court” has the same meaning as in the Companies Acts (see section 1156 of the Companies Act 2006);

• “document” means information in any recorded form;

• “government or public authority” means—

  (a)

  a corporation sole;

  (b)

  a government or government department of a country or territory or a part of a country or territory;

  (c)

  an international organisation whose members include two or more countries or territories (or their governments);

  (d)

  a local authority or local government body in the United Kingdom or elsewhere;

  (e)

  any other public authority in the United Kingdom or elsewhere;

• “legal entity” has the meaning given by section 2;

• “managing officer”, in relation to an overseas entity, includes a director, manager or secretary;

• “overseas entity” has the meaning given by section 2;

• “register” means the register kept under section 3;

• “registered”: an overseas entity is registered if its name appears in the list of registered overseas entities kept in accordance with section 3(3);

• “registrable beneficial owner”, in relation to an overseas entity, has the meaning given by Schedule 2;

• “the registrar” has the meaning given by section 3(1).

(2) A reference in section 12 or 13 to a person who is a registrable beneficial owner of an overseas entity includes, in connection with the obtaining of information required by section 7(1)(b), 9(1)(c), 41(3)(b) or 42(1)(c)(i), a reference to a person who has ceased to be a registrable beneficial owner.

(3) A reference in this Part to a trust includes arrangements, under the law of a country or territory outside the United Kingdom, that are of a similar character to a trust, and any related expressions are to be read accordingly.

(4) The Secretary of State may by regulations make provision specifying descriptions of arrangements that are, or are not, to be treated as being of a similar character to a trust for the purposes of subsection (3).

(5) Regulations under subsection (4) are subject to the negative resolution procedure.

Commencement Information

I124 S. 44 not in force at Royal Assent, see s. 69

I125 S. 44 in force at 1.8.2022 for specified purposes by S.I. 2022/876, reg. 3(n)

I126 S. 44 in force at 12.10.2022 in so far as not already in force by S.I. 2022/1039, reg. 2(a)

PART 2 U.K. Unexplained wealth orders

45 Imposition of unexplained wealth orders on officers etc of property holder: England and Wales and Northern Ireland U.K.

(1) The Proceeds of Crime Act 2002 is amended as follows.

(2) Section 362A (unexplained wealth orders) is amended in accordance with subsections (3) to (7).

(3) After subsection (2) insert—

“(2A) In a case where the respondent is not an individual, the application may also specify a person who is a responsible officer of the respondent (and a person specified may include a person outside the United Kingdom).”

(4) In subsection (3), in the words before paragraph (a), after “the respondent” insert “or any responsible officer specified in the order (a “specified responsible officer”)”.

(5) In subsection (5)—

(a) after “requiring the respondent” insert “or any specified responsible officer”;

(b) for “require the respondent” substitute “require them”.

(6) In subsection (6), after “respondent” insert “or any specified responsible officer”.

(7) After subsection (7) insert—

“(8) For the purposes of this Chapter, each of the following is a “responsible officer” of the respondent (in a case where the respondent is not an individual)—

(a) any director of the respondent, including any person occupying the position of a director, by whatever name called;

(b) any member of a body of the respondent equivalent to a board of directors;

(c) any other manager, secretary or similar officer of the respondent;

(d) where the respondent is a partnership, a partner or a member of the partnership;

(e) any person in accordance with whose directions or instructions the board of directors or equivalent body of the respondent are accustomed to act.”

(8) In section 362C (effect of unexplained wealth order in case of non-compliance)—

(a) in subsection (1), for “the respondent fails” substitute “the respondent and the specified responsible officer (if any), between them, fail”;

(b) in subsection (5)(a), after “a respondent” insert “or a specified responsible officer”;

(c) in subsection (5)(b)—

(i) omit “on the respondent”;

(ii) for “the respondent is” substitute “the respondent and the specified responsible officer (if any) are”.

(9) In section 362D (effect of unexplained wealth order in case of compliance or purported compliance)—

(a) in subsection (1), for “the respondent complies, or purports to comply, with the” substitute “the respondent and the specified responsible officer (if any) between them comply, or purport to comply, with all of the”;

(b) in subsection (7)—

(i) omit paragraph (a);

(ii) in the words after paragraph (c), for “(a) to (c)” substitute “(b) and (c)”.

(10) In section 362G(3) (disclosure of information, copying of documents etc), after “the respondent” insert “or any specified responsible officer”.

(11) In section 362I(3)(b) (application to vary or discharge unexplained wealth order), after “respondent” insert “or any specified responsible officer”.

Commencement Information

I127 S. 45 not in force at Royal Assent, see s. 69

I128 S. 45 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

46 Imposition of unexplained wealth orders on officers etc of property holder: Scotland U.K.

(1) The Proceeds of Crime Act 2002 is amended as follows.

(2) Section 396A (unexplained wealth orders) is amended in accordance with subsections (3) to (7).

(3) After subsection (2) insert—

“(2A) In a case where the respondent is not an individual, the application may also specify a person who is a responsible officer of the respondent (and a person specified may include a person outside the United Kingdom).”

(4) In subsection (3), in the words before paragraph (a), after “the respondent” insert “or any responsible officer specified in the order (a “specified responsible officer”)”.

(5) In subsection (5)—

(a) after “requiring the respondent” insert “or any specified responsible officer”;

(b) for “require the respondent” substitute “require them”.

(6) In subsection (6), after “respondent” insert “or any specified responsible officer”.

(7) After subsection (6) insert—

“(7) For the purposes of this Chapter, each of the following is a “responsible officer” of the respondent (in a case where the respondent is not an individual)—

(a) any director of the respondent, including any person occupying the position of a director, by whatever name called;

(b) any member of a body of the respondent equivalent to a board of directors;

(c) any other manager, secretary or similar officer of the respondent;

(d) where the respondent is a partnership, a partner or member of the partnership;

(e) any person in accordance with whose directions or instructions the board of directors or equivalent body of the respondent are accustomed to act.”

(8) In section 396C (effect of unexplained wealth order in case of non-compliance)—

(a) in subsection (1), for “the respondent fails” substitute “the respondent and the specified responsible officer (if any), between them, fail”;

(b) in subsection (5)(a), after “a respondent” insert “or a specified responsible officer”;

(c) in subsection (5)(b)—

(i) omit “on the respondent”;

(ii) for “the respondent is” substitute “the respondent and the specified responsible officer (if any) are”.

(9) In section 396D (effect of unexplained wealth order in case of compliance or purported compliance)—

(a) in subsection (1), for “the respondent complies, or purports to comply, with the” substitute “the respondent and the specified responsible officer (if any) between them comply, or purport to comply, with all of the”;

(b) in subsection (8)—

(i) omit paragraph (a);

(ii) in the words after paragraph (c), for “(a) to (c)” substitute “(b) and (c)”.

(10) In section 396G(3) (disclosure of information, copying of documents etc), after “the respondent” insert “or any specified responsible officer”.

Commencement Information

I129 S. 46 not in force at Royal Assent, see s. 69

I130 S. 46 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

47 Alternative test to the income requirement: England and Wales and Northern Ireland U.K.

In section 362B(3) of the Proceeds of Crime Act 2002 (income requirement for making of unexplained wealth order)—

(a) after “suspecting” insert “—

(a)” ;

(b) at the end insert “, or

(b) that the property has been obtained through unlawful conduct (within the meaning given by section 242).”

Commencement Information

I131 S. 47 not in force at Royal Assent, see s. 69

I132 S. 47 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

48 Alternative test to the income requirement: Scotland U.K.

In section 396B(3) of the Proceeds of Crime Act 2002 (income requirement for making of unexplained wealth order)—

(a) after “suspecting” insert “—

(a)” ;

(b) at the end insert “, or

(b) that the property has been obtained through unlawful conduct (within the meaning given by section 242).”

Commencement Information

I133 S. 48 not in force at Royal Assent, see s. 69

I134 S. 48 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

49 Power to extend period for which interim freezing order has effect: England and Wales and Northern Ireland U.K.

(1) The Proceeds of Crime Act 2002 is amended as follows.

(2) In section 362D (effect of order: cases of compliance or purported compliance)—

(a) in subsection (3), at the end insert “, or that period as it may be extended by virtue of section 362DA or 362DB (the “determination period”)”;

(b) in subsection (4), for “60 day period mentioned in subsection (3)” substitute “determination period”.

(3) After that section insert—

“362DA Extension of period for making determination where interim freezing order has been made

(1) The High Court may, on an application made by the enforcement authority, extend the determination period if satisfied that—

(a) the enforcement authority is working diligently and expeditiously towards making a determination under section 362D(2),

(b) further time is needed for the authority to make that determination, and

(c) it is reasonable in all the circumstances for the period to be extended.

(2) The application must be made before the determination period would otherwise end.

(3) An extension of the determination period must end no later than the end of the period of 63 days beginning with the day after that on which the period would otherwise end.

(4) Where the determination period is extended under subsection (1), it may be further extended by the High Court (and subsections (2) and (3) apply in relation to any further extension as they apply in relation to the first one).

(5) But the determination period as extended must not in total exceed the period of 186 days starting with the day of compliance (within the meaning given by section 362D(7)(b)).

362DB Extension of period pending determination of proceedings etc

(1) Subsection (2) applies where—

(a) an application is made to the High Court under section 362DA for the extension (or further extension) of the determination period, and

(b) the period would (apart from that subsection) end before the court determines the application or it is otherwise disposed of.

(2) The determination period is extended from the time when it would otherwise end until—

(a) the Court determines the application or it is otherwise disposed of, or

(b) if earlier, the end of the period of 31 days beginning with the day after that on which the period would otherwise have ended.

(3) Subsection (4) applies where—

(a) proceedings on an appeal in respect of a decision on an application under section 362DA have been brought, and

(b) the determination period would (apart from that subsection) end before the proceedings are finally determined or otherwise disposed of.

(4) The determination period is extended from the time when it would otherwise end until—

(a) the proceedings are finally determined or otherwise disposed of, or

(b) if earlier, the end of the period mentioned in subsection (2)(b).

(5) Subsection (6) applies where—

(a) an application is made to the Court under section 362DA for an extension of the determination period,

(b) the Court refuses to grant the application, and

(c) the period would (apart from that subsection) end before the end of the 5 day period.

(6) The determination period is extended from the time when it would otherwise end until—

(a) the end of the 5 day period, or

(b) if proceedings on an appeal against the decision are brought before the end of the 5 day period, the time when those proceedings are brought.

(7) The “5 day period” is the period of 5 working days beginning with the day on which the Court refuses to grant the application; and for these purposes “working day” means a day other than—

(a) a Saturday or a Sunday,

(b) Christmas Day or Good Friday, or

(c) a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom in which the application in question under section 362DA is made.

(8) The restriction on the overall extension of the determination period mentioned in section 362DA(5) applies to an extension of the period in accordance with any provision of this section as it applies to an extension under an order of the Court.”

(4) In section 362K(6)(a) (variation and discharge of interim freezing order), for “60 day period mentioned in section 362D(3)” substitute “determination period (see section 362D(3))”.

Commencement Information

I135 S. 49 not in force at Royal Assent, see s. 69

I136 S. 49 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

50 Power to extend period for which interim freezing order has effect: Scotland U.K.

(1) The Proceeds of Crime Act 2002 is amended as follows.

(2) In section 396D (effect of order: cases of compliance or purported compliance)—

(a) in subsection (4), at the end insert “, or that period as it may be extended by virtue of section 396DA or 396DB (the “determination period”)”;

(b) in subsection (5), for “60 day period mentioned in subsection (3)” substitute “determination period”.

(3) After that section insert—

“396DA Extension of period for making determination where interim freezing order has been made

(1) The Court of Session may, on an application made by the Scottish Ministers or the Lord Advocate, extend the determination period if satisfied that—

(a) the applicant is working diligently and expeditiously towards making a determination under section 396D(2)(b) or (3) (as the case may be),

(b) further time is needed to make that determination, and

(c) it is reasonable in all the circumstances for the period to be extended.

(2) The application must be made before the determination period would otherwise end.

(3) An extension of the determination period must end no later than the end of the period of 63 days beginning with the day after that on which the period would otherwise end.

(4) Where the period is extended under subsection (1), it may be further extended by the Court of Session (and subsections (2) and (3) apply in relation to any further extension as they apply in relation to the first one).

(5) But the determination period as extended must not exceed the period of 186 days starting with the day of compliance (within the meaning given by section 396D(8)(b)).

396DB Extension of period pending determination of proceedings etc

(1) Subsection (2) applies where—

(a) an application is made to the Court of Session under section 396DA for the extension (or further extension) of the determination period, and

(b) the period would (apart from that subsection) end before the Court determines the application or it is otherwise disposed of.

(2) The determination period is extended from the time when it would otherwise end until—

(a) the Court determines the application or it is otherwise disposed of, or

(b) if earlier, the end of the period of 31 days beginning with the day after that on which the period would otherwise have ended.

(3) Subsection (4) applies where—

(a) proceedings on an appeal in respect of a decision on an application under section 396DA have been brought, and

(b) the determination period would (apart from that subsection) end before the proceedings are finally determined or otherwise disposed of.

(4) The determination period is extended from the time when it would otherwise end until—

(a) the proceedings are finally determined or otherwise disposed of, or

(b) if earlier, the end of the period mentioned in subsection (2)(b).

(5) Subsection (6) applies where—

(a) an application is made to the Court under section 396DA for an extension of the determination period,

(b) the Court refuses to grant the application, and

(c) the period would (apart from that subsection) end before the end of the 5 day period.

(6) The determination period is extended from the time when it would otherwise end until—

(a) the end of the 5 day period, or

(b) if proceedings on an appeal against the decision are brought before the end of the 5 day period, the time when those proceedings are brought.

(7) The “5 day period” is the period of 5 working days beginning with the day on which the Court refuses to grant the application; and for these purposes “working day” means a day other than—

(a) a Saturday or a Sunday, or

(b) a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in Scotland.

(8) The restriction on the overall extension of the determination period mentioned in section 396DA(5) applies to an extension of the period in accordance with any provision of this section as it applies to an extension under an order of the Court.”

(4) In section 396K(6)(a) (variation and recall of interim freezing order), for “60 day period mentioned in section 396D(4)” substitute “determination period (see section 396D(4))”.

Commencement Information

I137 S. 50 not in force at Royal Assent, see s. 69

I138 S. 50 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

51 Annual reports on use of unexplained wealth orders: England and Wales E+W

After section 362I of the Proceeds of Crime Act 2002 insert—

“362IA Annual reports

(1) The Secretary of State must prepare and publish a report in respect of each relevant period setting out—

(a) the number of unexplained wealth orders made by the High Court in England and Wales during that period, and

(b) the number of applications made to that Court by enforcement authorities for such an order during that period.

(2) Each of the following is a “relevant period”—

(a) the period of 12 months beginning with the day on which section 51 of the Economic Crime (Transparency and Enforcement) Act 2022 comes into force;

(b) each subsequent period of 12 months.

(3) A report under this section must be prepared and published within the period of 4 months beginning with the end of the relevant period to which the report relates.

(4) The Secretary of State must lay a copy of each report prepared under this section before Parliament.”

Commencement Information

I139 S. 51 not in force at Royal Assent, see s. 69

I140 S. 51 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2

52 Limits on costs orders in relation to unexplained wealth orders: England and Wales and Northern Ireland U.K.

After section 362T of the Proceeds of Crime Act 2002 insert—

“Unexplained wealth orders: costs of proceedings U.K.

362U Costs orders

(1) This section applies in the following cases—

(a) an enforcement authority has made an application for an unexplained wealth order under section 362A;

(b) an enforcement authority has made an application for the determination period to be extended under section 362DA;

(c) an application has been made to discharge or vary an unexplained wealth order;

(d) an enforcement authority has made an application for an interim freezing order under section 362J;

(e) an application has been made to discharge or vary an interim freezing order;

(f) an application has been made in the circumstances referred to in section 362M to—

(i) stay an action, execution or other legal process,

(ii) grant leave to levy distress or use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (taking control of goods),

(iii) stay proceedings in respect of property or allow them to continue, or

(iv) grant leave to exercise a right of forfeiture in relation to a tenancy;

(g) an enforcement authority has made an application for an order for the appointment of a receiver under section 362N;

(h) an enforcement authority has made an application for an order under section 362O (powers of receiver);

(i) an application has been made for directions to a receiver under section 362P;

(j) an application has been made to discharge or vary—

(i) the appointment of a receiver under section 362N,

(ii) an order under section 362O, or

(iii) directions under section 362P;

(k) an application has been made for compensation under section 362R;

(l) the High Court has of its own motion exercised a power to do anything an application mentioned in paragraphs (a) to (k) may be made for;

(m) an application has been made for permission to appeal in relation to anything mentioned in paragraphs (a) to (l).

(2) The court may not make an order that any costs of proceedings relating to a case to which this section applies (including appeal proceedings) are payable by an enforcement authority to a respondent or a specified responsible officer in respect of the involvement of the respondent or the officer in those proceedings, unless—

(a) the authority acted unreasonably in making or opposing the application to which the proceedings relate, or in supporting or opposing the making of the order to which the proceedings relate, or

(b) the authority acted dishonestly or improperly in the course of the proceedings.”

Commencement Information

I141 S. 52 not in force at Royal Assent, see s. 69

I142 S. 52 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2 (with reg. 3)

53 Limits on expenses orders in relation to unexplained wealth orders: Scotland U.K.

After section 396U of the Proceeds of Crime Act 2002 insert—

“Unexplained wealth orders: expenses of proceedings U.K.

396V Expenses orders

(1) This section applies in the following cases—

(a) the Scottish Ministers have made an application for an unexplained wealth order under section 396A;

(b) an application has been made for the determination period to be extended under section 396DA;

(c) an application has been made to discharge or vary an unexplained wealth order;

(d) the Scottish Ministers have made an application for an interim freezing order under section 396J;

(e) an application has been made to vary or recall an interim freezing order;

(f) an application has been made in the circumstances referred to in section 396M to—

(i) sist an action, execution or other legal process, or

(ii) sist proceedings in respect of property or allow them to continue;

(g) the Scottish Ministers have made an application under section 396N (arrestment of property affected by interim freezing order);

(h) the Scottish Ministers have made an application under section 396O (inhibition of property affected by interim freezing order);

(i) the Scottish Ministers have made an application for an order for the appointment of a receiver under section 396P;

(j) the Scottish Ministers have made an application for an order under section 396Q (powers of receiver);

(k) an application has been made for directions to a receiver under section 396R;

(l) an application has been made to vary or recall—

(i) the appointment of a receiver under section 396P,

(ii) an order under section 396Q or

(iii) directions under section 396R;

(m) an application has been made for compensation under section 396S;

(n) the Court of Session has of its own motion exercised a power to do anything an application mentioned in paragraphs (a) to (m) may be made for;

(o) an application has been made for permission to appeal in relation to anything mentioned in paragraphs (a) to (n).

(2) The court may not make an order that any expenses of proceedings relating to a case to which this section applies (including appeal proceedings) are payable by the Scottish Ministers or the Lord Advocate to a respondent or a specified responsible officer in respect of the involvement of the respondent or the officer in those proceedings, unless—

(a) the Scottish Ministers or the Lord Advocate acted unreasonably in making or opposing the application to which the proceedings relate, or in supporting or opposing the making of the order to which the proceedings relate, or

(b) the Scottish Ministers or the Lord Advocate acted dishonestly or improperly in the course of the proceedings.”

Commencement Information

I143 S. 53 not in force at Royal Assent, see s. 69

I144 S. 53 in force at 15.5.2022 by S.I. 2022/519, regs. 1(3), 2 (with reg. 3)

PART 3 U.K. Sanctions

CHAPTER 1 U.K. Monetary penalties

54 Imposition of monetary penalties U.K.

(1) Section 146 of the Policing and Crime Act 2017 (power to impose monetary penalties for breaching financial sanctions) is amended as follows.

(2) In subsection (1) omit paragraph (b) (together with “and” preceding it).

(3) After subsection (1) insert—

“(1A) In determining for the purposes of subsection (1) whether a person has breached a prohibition, or failed to comply with an obligation, imposed by or under financial sanctions legislation, any requirement imposed by or under that legislation for the person to have known, suspected or believed any matter is to be ignored.”

Commencement Information

I145 S. 54 not in force at Royal Assent, see s. 69

I146 S. 54 in force at 15.6.2022 by S.I. 2022/638, reg. 2 (with reg. 3)

55 Procedural rights U.K.

In section 147 of the Policing and Crime Act 2017 (monetary penalties: procedural rights), omit subsection (5) (personal review by Minister).

Commencement Information

I147 S. 55 not in force at Royal Assent, see s. 69

I148 S. 55 in force at 15.6.2022 by S.I. 2022/638, reg. 2

56 Reporting on breach of financial sanctions U.K.

In section 149 of the Policing and Crime Act 2017 (monetary penalties: supplementary), after subsection (2) insert—

“(3) The Treasury may also publish reports at such intervals as it considers appropriate in cases where—

(a) a monetary penalty has not been imposed under section 146 or 148, but

(b) the Treasury is satisfied, on the balance of probabilities, that a person has breached a prohibition, or failed to comply with an obligation, that is imposed by or under financial sanctions legislation.”

Commencement Information

I149 S. 56 not in force at Royal Assent, see s. 69

I150 S. 56 in force at 15.6.2022 by S.I. 2022/638, reg. 2

CHAPTER 2 U.K. Imposition of sanctions etc

Sanctions regulations U.K.

57 Streamlining process of making sanctions regulations U.K.

(1) The Sanctions and Anti-Money Laundering Act 2018 (referred to in this Chapter as the “2018 Act”) is amended as follows.

(2) In section 1 (power to make sanctions regulations) omit subsection (4).

(3) Omit section 2 (additional requirements for regulations for a purpose within section 1(2)).

(4) In section 45 (revocation and amendment of regulations under section 1)—

(a) in subsection (2)—

(i) omit the “and” at the end of paragraph (a);

(ii) omit paragraph (b);

(b) omit subsections (3) to (5);

(c) in subsection (6) omit “, section 2”.

Commencement Information

I151 S. 57 in force at Royal Assent, see s. 69(3)

Designation U.K.

58 Urgent designation of persons by name U.K.

(1) Section 11 of the 2018 Act (designation of a person by name under a designation power) is amended in accordance with subsections (2) to (6).

(2) After subsection (1) insert—

“(1A) The regulations must contain provision for the Minister to be able to choose whether to designate a person under—

(a) the standard procedure, or

(b) the urgent procedure.”

(3) For subsection (2) substitute—

“(2) The regulations must provide that under the standard procedure the Minister is prohibited from designating a person by name except where condition A is met.

(2A) Condition A is that the Minister has reasonable grounds to suspect that that person is an involved person (see subsection (3)).

(2B) The regulations must provide that under the urgent procedure—

(a) the Minister may designate a person by name where condition A is not met, but conditions B and C are met, and

(b) the designation ceases to have effect at the end of the period of 56 days beginning with the day following the designation unless, within that period, the Minister certifies that—

(i) condition A is met, or

(ii) conditions B and C continue to be met.

(2C) The regulations must provide that, under the urgent procedure, in a case where the Minister makes a certification under subsection (2B)(b)(ii), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in subsection (2B)(b), unless within that period the Minister certifies that condition A is met.

(2D) Condition B is that relevant provision (whenever made) applies to, or in relation to, the person under the law of—

(a) the United States of America;

(b) the European Union;

(c) Australia;

(d) Canada;

(e) any other country specified for the purposes of this paragraph in regulations made by an appropriate Minister.

(2E) Condition C is that the Minister considers that it is in the public interest to make designations under the urgent procedure.

(2F) For the purposes of condition B, relevant provision is provision that the Minister considers—

(a) corresponds, or is similar, to the type of sanction or sanctions in the regulations under section 1, or

(b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in the regulations under section 1.”

(4) In subsection (7), after “by name” insert “under the standard procedure”.

(5) After subsection (7) insert—

“(7A) The regulations must, in relation to any case where the Minister designates a person by name under the urgent procedure, require the information given under the provision made under section 10(3) to include a statement—

(a) that the designation is made under the urgent procedure,

(b) identifying the relevant provision by reference to which the Minister considers that condition B is met in relation to the person, and

(c) setting out why the Minister considers that condition C is met.

(7B) The regulations must also provide that, in relation to any case where the Minister designates a person by name under the urgent procedure, the Minister must, after the end of the period mentioned in subsection (2B)(b), or if the Minister has made a certification under subsection (2B)(b)(ii) the period mentioned in subsection (2C), but otherwise without delay—

(a) in a case where the designation ceases to have effect, take such steps as are reasonably practicable to inform the person that the designation has ceased to have effect, or

(b) in any other case, take such steps as are reasonably practicable to give the designated person a statement of reasons.”

(6) In subsection (8)—

(a) for “subsection (7)” substitute “subsections (7) and (7A)”;

(b) for “which have led the Minister to make the designation” substitute “—

(a) in the case of a designation under the standard procedure, which have led the Minister to make the designation, and

(b) in the case of a designation under the urgent procedure, as a result of which the designation does not cease to have effect at the end of the period mentioned in subsection (2B)(b) or (2C) (as the case may be).”

(7) In section 22 of the 2018 Act (power to vary or revoke designation made under regulations), in subsection (4), in paragraph (a)—

(a) for “11(2)” substitute “11”;

(b) omit the words in brackets.

Commencement Information

I152 S. 58 in force at Royal Assent, see s. 69(3)

59 Urgent designation of persons by description U.K.

(1) Section 12 of the 2018 Act (designation by persons by description under a designation power) is amended in accordance with subsections (2) to (9).

(2) After subsection (1) insert—

“(1A) The regulations must contain provision for the Minister to be able to choose whether to provide that persons of a specified description are designated persons under either—

(a) the standard procedure, or

(b) the urgent procedure.”

(3) For subsection (2) substitute—

“(2) The regulations must contain provision which prohibits the exercise of that power under the standard procedure except where conditions A and C are met.”

(4) Omit subsection (4).

(5) In subsection (5) omit paragraph (b) (and the “and” before it).

(6) After subsection (5) insert—

“(5A) The regulations must provide that under the urgent procedure—

(a) the Minister may provide that persons of a specified description are designated persons where condition C is not met, but conditions A, D and E are met, and

(b) the persons cease to be designated persons at the end of the period of 56 days beginning with the day following the day on which the persons became designated persons unless, within that period, the Minister certifies that—

(i) conditions A and C are met, or

(ii) conditions A, D and E continue to be met.

(5B) The regulations must also provide that, under the urgent procedure, in a case where the Minister makes a certification under subsection (5A)(b)(ii), the designation ceases to have effect at the end of the period of 56 days beginning with the day immediately following the period mentioned in subsection (5A)(b), unless within that period the Minister certifies that conditions A and C are met.

(5C) Condition D is that the description of persons specified is of persons (or some persons) to which, or in relation to which, relevant provision (whenever made) applies under the law of—

(a) the United States of America;

(b) the European Union;

(c) Australia;

(d) Canada;

(e) any other country specified for the purposes of this paragraph in regulations made by an appropriate Minister.

(5D) Condition E is that the Minister considers that it is in the public interest to provide that persons of a specified description are designated persons under the urgent procedure.

(5E) For the purposes of condition D, relevant provision is provision that the Minister considers—

(a) corresponds, or is similar, to the type of sanction or sanctions in the regulations under section 1, or

(b) is made for purposes corresponding, or similar, to any purpose of any type of sanction or sanctions in the regulations under section 1.”

(7) In subsection (7), after “designated persons” insert “under the standard procedure”.

(8) After subsection (7) insert—

“(7A) The regulations must, in relation to any case where the Minister provides that persons of a specified description are designated persons under the urgent procedure, require the information given under the provision made under section 10(3) to include a statement—

(a) that the provision is made under the urgent procedure,

(b) identifying the relevant provision by reference to which the Minister considers that condition D is met in relation to persons of the specified description, and

(c) setting out why the Minister considers that condition E is met.

(7B) The regulations must provide that, in relation to any case where the Minister provides that persons of a specified description are designated persons under the urgent procedure, the Minister must, after the end of the period mentioned in subsection (5A)(b), or if the Minister has made a certification under subsection (5A)(b)(ii) the period mentioned in subsection (5B), but otherwise without delay—

(a) in a case where the persons cease to be designated persons, take such steps as are reasonably practicable to inform the persons that they have ceased to be designated persons, or

(b) in any other case, take such steps as are reasonably practicable to give each designated person a statement of reasons.”

(9) In subsection (8)—

(a) for “subsection (7)” substitute “subsections (7) and (7A)”;

(b) for the words from “which have led” to the end substitute “—

(a) in the case of a designation under the standard procedure, which have led the Minister to make the provision designating persons of that description, and

(b) in the case of a designation under the urgent procedure, as a result of which the persons do not cease to be designated persons at the end of the period mentioned in subsection (5A)(b) or (5B) (as the case may be).”

(10) In section 22 of the 2018 Act (power to vary or revoke designation made under regulations), in subsection (4), in paragraph (b)—

(a) for “12(2)” substitute “12”;

(b) omit the words in brackets.

Commencement Information

I153 S. 59 in force at Royal Assent, see s. 69(3)

60 Specified ships U.K.

In section 14 of the 2018 Act (“specified ships”), in subsection (6), omit paragraph (b) (and the “and” before it).

Commencement Information

I154 S. 60 in force at Royal Assent, see s. 69(3)

61 Existing sanctions regulations U.K.

(1) Any pre-commencement regulations which authorise an appropriate Minister to designate persons by name (see section 11 of the 2018 Act) have effect, and for the purposes of anything done on or after the day on which this Act is passed are deemed to have always had effect, as if the regulations contain the provision required to be included as a result of the amendments made by section 58.

(2) Any pre-commencement regulations which grant a power to an appropriate Minister to provide that persons of a specified description are designated persons (see section 12 of the 2018 Act) have effect, and for the purposes of anything done on or after the day on which this Act is passed are deemed to have always had effect, as if the regulations contain the provision required to be included as a result of the amendments made by section 59.

(3) Pre-commencement regulations have effect, and for the purposes of anything done on or after the day on which this Act is passed are deemed to have always had effect, as if the regulations do not include any provision required to be included by the following provisions—

(a) section 11(2)(b) of the 2018 Act (which is now omitted by virtue of the amendment made by section 58(3));

(b) section 12(2) of the 2018 Act to the extent that that subsection related to provisions repealed by section 59(4) or (5);

(c) provision repealed by section 60.

(4) In this section, “pre-commencement regulations” means regulations under Part 1 of the 2018 Act made before the day on which this Act is passed.

Commencement Information

I155 S. 61 in force at Royal Assent, see s. 69(3)

Reviews and reports U.K.

62 Removal of reviews U.K.

(1) Omit the following provisions of the 2018 Act—

(a) section 24 (periodic review of certain designations);

(b) section 28 (periodic review where ships are specified);

(c) section 30 (review of regulations under section 1).

(2) In section 33 of the 2018 Act (procedure for requests to, and reviews by, appropriate Minister)—

(a) in the heading, omit “, and reviews by,”;

(b) in subsection (1) omit “or a review under section 24, 28 or 30”.

(3) In section 45 of the 2018 Act (revocation and amendment of regulations under section 1), in subsection (6) omit “and section 30”.

Commencement Information

I156 S. 62 in force at Royal Assent, see s. 69(3)

63 Removal of reporting requirements U.K.

(1) Omit the following provisions of the 2018 Act—

(a) section 18 (report in respect of offences in regulations);

(b) section 32 (periodic reports on exercise of power to make regulations under section 1);

(c) section 46 (report where regulations for a purpose within section 1(2) are amended).

(2) In section 57 of the 2018 Act (duties to lay certain reports before Parliament: further provision)—

(a) omit subsections (1) and (2);

(b) in subsection (3), for “a reporting provision” substitute “paragraph 21(2) of Schedule 2 (duty to lay report)”;

(c) in subsection (4), for “a reporting provision” substitute “paragraph 21(2) of Schedule 2”;

(d) in subsection (5), for “the reporting provision in question” substitute “paragraph 21(2) of Schedule 2”.

Commencement Information

I157 S. 63 in force at Royal Assent, see s. 69(3)

64 Court reviews: restrictions regarding damages U.K.

(1) In section 39 of the 2018 Act (court reviews: further provision)—

(a) in subsection (2) omit paragraph (a) (and the “or” after it);

(b) after subsection (2) insert—

“(2A) Damages permitted by subsection (2) must not exceed such amount as may be specified in, or calculated in accordance with, regulations made by an appropriate Minister for the purposes of this subsection.”

(2) In section 55 (regulations: procedure), in subsection (5), after paragraph (a) insert—

“(aa) section 39(2A),”.

(3) The amendments made by this section apply in relation to proceedings to which section 39(2) of the 2018 Act applies that are commenced on or after 4 March 2022.

Commencement Information

I158 S. 64 in force at Royal Assent, see s. 69(3)

Miscellaneous U.K.

65 Sharing of information U.K.

In section 16 of the 2018 Act (sanctions regulations: information), in subsection (1)(a) after “requiring” insert “or authorising”.

Commencement Information

I159 S. 65 in force at Royal Assent, see s. 69(3)

66 Consequential provision U.K.

(1) An appropriate Minister (within the meaning of the 2018 Act) may by regulations make provision that the Minister considers to be consequential on this Chapter amending—

(a) Part 1 or 3 of the 2018 Act, or

(b) regulations made under Part 1 of that Act.

(2) A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal any provision of Part 1 or 3 of the 2018 Act is subject to the affirmative resolution procedure.

(3) Any other statutory instrument containing regulations under this section is subject to the negative resolution procedure.

Commencement Information

I160 S. 66 in force at Royal Assent, see s. 69(3)

PART 4 U.K. General

67 Regulations U.K.

(1) A power to make regulations under this Act is exercisable by statutory instrument.

(2) Regulations under this Act may make different provision for different purposes.

(3) Regulations under this Act may—

(a) include supplementary, incidental and consequential provision;

(b) make transitional provision and savings.

(4) Where regulations under this Act are subject to “the affirmative resolution procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of each House of Parliament.

(5) Where regulations under this Act are subject to “the negative resolution procedure”, the statutory instrument containing the regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

(6) Any provision that may be made by regulations under this Act subject to the negative resolution procedure may be made by regulations subject to the affirmative resolution procedure.

(7) This section does not apply to regulations under section 69.

Commencement Information

I161 S. 67 in force at Royal Assent, see s. 69(3)

68 Extent U.K.

(1) Except as mentioned in subsections (2) to (4), this Act extends to—

(a) England and Wales,

(b) Scotland, and

(c) Northern Ireland.

(2) In Part 1—

(a) section 33(1) and Schedule 3 extend to England and Wales only;

(b) section 33(2) and Parts 1 and 2 of Schedule 4 extend to Scotland only;

(c) section 33(3) to (7) and Schedule 5 extend to Northern Ireland only.

(3) In Part 2, section 51 extends to England and Wales only.

(4) The amendments made by the rest of Part 2 and by Part 3 have the same extent as the provisions amended.

Commencement Information

I162 S. 68 in force at Royal Assent, see s. 69(3)

69 Commencement U.K.

(1) Parts 1 and 2 come into force on such day as the Secretary of State may by regulations appoint.

(2) Chapter 1 of Part 3 comes into force on such day as the Treasury may by regulations appoint.

(3) Chapter 2 of Part 3 and this Part come into force on the day on which this Act is passed.

(4) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of Parts 1 and 2 or this Part.

(5) The Secretary of State or the Treasury may by regulations make transitional or saving provision in connection with the coming into force of any provision of Part 3.

(6) Regulations under this section may make different provision for different purposes.

(7) A power to make regulations under this section is exercisable by statutory instrument.

Commencement Information

I163 S. 69 in force at Royal Assent, see s. 69(3)

70 Short title U.K.

This Act may be cited as the Economic Crime (Transparency and Enforcement) Act 2022.

Commencement Information

I164 S. 70 in force at Royal Assent, see s. 69(3)