United Kingdom – New offences and penalties under EECTA and Companies Act

The United Kingdom’s Economic Crime and Corporate Transparency Act 2023 (ECCTA) received Royal Assent on the 26th of October 2023 and represents an overhaul of the UK government’s framework for tackling economic and financial crime.

The new regime also grants the Registrar greater power to impose direct financial penalties for a broader range of offences under the Companies Act 2006. This includes all existing offences under the Companies Act 2006 as well as new offences introduced by the EECTA relating to the submission of misleading or false information and deceptive filings and statements.

These changes will add up to existing criminal sanctions and enable the Registrar to impose penalties of up to £10,000. Currently the Registrar of Companies operates a civil penalty regime only for late filing of accounts.

The new regulations will set out a procedure for the Registrar to issue warning notices, time periods for compliance and penalty notices. A procedure for appeals against penalty notices will also be implemented. In all cases the Registrar will have discretion to choose whether to pursue a financial penalty or pass to law enforcement to consider criminal sanctions.

The enforcement date is still unknown. Companies House has announced that it will publish guidance on the approach it will be taking for enforcement before it starts issuing financial penalties.