Economic Crime (Transparency and Enforcement) Act 2022

PART 1Registration of overseas entities

2Definition of “overseas entity” etc

The register and registration

3Register of overseas entities

4Application for registration

5Registration and allocation of overseas entity ID

6Notice of registration

8Failure to comply with updating duty

9Application for removal

10Processing of application under section 9

11Transfer of documents to Public Record Office

Obtaining, updating and verifiying information

12Identifying registrable beneficial owners

13Additional powers to obtain information

14Sections 12 and 13: supplementary

15Failure to comply with notice under section 12 or 13

16Verification of registrable beneficial owners and managing officers

17Power to modify application process etc in certain cases

Language requirement

19Documents to be in English

Annotation of the register

20Annotation of the register

Inspection of the register and protection of information

21Inspection and copies of register

22Material unavailable for inspection

23Disclosure of information about trusts

24Disclosure of protected information

25Power to protect other information

26Data protection

Correction or removal of material on the register

27Resolving inconsistencies in the register

28Administrative removal of material from register

29Application to rectify register

30Court order to rectify register

31Court powers on ordering removal of material from the register

False statements

32General false statement offence

Land ownership and transactions

33Land ownership and transactions

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

Supplementary provision about offences

35Liability of officers in default

36Meaning of “daily default fine”

37Consent required for prosecutions

38Further provision about proceedings

Financial penalties

39Financial penalties

Sharing of information by HMRC

40Sharing of information by HMRC

Transitional provision

41Applications in the transitional period: information about land transactions

42Requirement for certain unregistered overseas entities to provide information

43Section 42: supplementary

44Interpretation

PART 2Unexplained wealth orders

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

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

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

48Alternative test to the income requirement: Scotland

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

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

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

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

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

PART 3Sanctions

CHAPTER 1Monetary penalties

54Imposition of monetary penalties

55Procedural rights

56Reporting on breach of financial sanctions

CHAPTER 2Imposition of sanctions etc

Sanctions regulations

57Streamlining process of making sanctions regulations

58Urgent designation of persons by name

59Urgent designation of persons by description

60Specified ships

61Existing sanctions regulations

Reviews and reports

62Removal of reviews

63Removal of reporting requirements

64Court reviews: restrictions regarding damages

65Sharing of information

66Consequential provision

SCHEDULE 1Applications: required information

PART 1Introduction

1This Schedule sets out the required information for the purposes...

PART 2Overseas entities

2(1) The required information about an overseas entity is—

PART 3Registrable beneficial owners

4Governments and public authorities

5Other legal entities

PART 4Managing officers

7Persons other than individuals

8(1) The required information about a trust is—

PART 6Powers to make further provision under this Schedule

9(1) The Secretary of State may by regulations make further...

10(1) The Secretary of State may by regulations amend this...

SCHEDULE 2Registrable beneficial owners

PART 1Meaning of “registrable beneficial owner”

2Registrable beneficial owners: individuals

3Registrable beneficial owners: legal entities

4Registrable beneficial owners: government or public authority

PART 2Meaning of “beneficial owner”

6Beneficial owners

PART 3Meaning of “subject to its own disclosure requirements”

7(1) For the purposes of this Schedule a legal entity...

PART 4Beneficial owners exempt from registration

8“Exempt from being registered”

9Holding an interest in an overseas entity etc

PART 5Supplementary provision about interpretation of Schedule

11Joint interests

12Joint arrangements

13Calculating shareholdings

14Voting rights

15In applying this Schedule, the voting rights in a legal...

16Rights to appoint or remove members of the board

17References to a board of directors, in the case of...

18Shares or rights held “indirectly”

19Shares held by nominees

20Rights treated as held by a person who controls their exercise

21Rights exercisable only in certain circumstances etc

22Rights attached to shares held by way of security

23Limited partnerships

24Meaning of “director”

PART 6Power to amend thresholds etc

25(1) The Secretary of State may by regulations amend this...

SCHEDULE 3Land ownership and transactions: England and Wales

PART 1Amendments to Land Registration Act 2002

1The Land Registration Act 2002 is amended as follows.

2After section 85 insert— Overseas entities Overseas entities Schedule 4A is about the ownership of registered land by...

3After Schedule 4 insert— SCHEDULE 4A Overseas entities Section 85A...

4In section 128 (regulations), in subsection (4)—

PART 2Transition: qualifying estates registered pre-commencement

5Duty of proprietor to register as an overseas entity within transitional period

6Registrar’s duty to enter restriction in relation to qualifying estate

7Interpretation

SCHEDULE 4Land ownership and transactions: Scotland

PART 1Amendments

1Conveyancing (Scotland) Act 1924

2Land Registration etc. (Scotland) Act 2012 (asp 5)

3In section 21 (application for registration of deed)—

4In section 27 (application for voluntary registration), after subsection (4)...

5In section 46 (the title of which becomes “Meaning of...

6The italic heading before section 112 becomes “Offences”.

7After section 112 insert— Offence by overseas entity (1) An overseas entity must not deliver to a person...

8In section 116(2) (orders and regulations subject to the negative...

9After schedule 1 insert— SCHEDULE 1A Land transactions: overseas entities...

PART 2Transition: deeds registered pre-commencement

10Duty to register as an overseas entity within transitional period

11Disapplication of certain provisions during transitional period

12Interpretation

13For the purposes of paragraphs 10(1)(a) and 11(1)(a)—

PART 3Power to make further provision

14(1) The Secretary of State may by regulations make further...

SCHEDULE 5Land ownership and transactions: Northern Ireland

1The Land Registration Act (Northern Ireland) 1970 is amended as...

2After section 61 insert— Overseas entities Schedule 8A is about the ownership of registered land by...

3After Schedule 8 insert— SCHEDULE 8A Overseas entities Section 61A...

Economic Crime (Transparency and Enforcement) Act 2022

2022 Chapter 10

An Act to set up a register of overseas entities and their beneficial owners and require overseas entities who own land to register in certain circumstances; to make provision about unexplained wealth orders; and to make provision about sanctions.

[15th March 2022]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—