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What to look out for in 2023
2023 brings with it a new year of deadlines, process and regulations to be aware of. Here are 5 items to keep an eye out for in 2023:
1. UK Economic Crime and Transparency Bill
Expected to receive Royal Assent in spring 2023, the bill will make significant changes to the UK’s Companies House Register including changes to identity verification for UK Directors, persons of significant control (PSCs) and those delivering documents to Company House.
This follows the Economic Crime (Transparency and Enforcement) Act 2022 introduced in August – click here for further information.
2. EU Digitalization Directive drive
By August 1, 2023, it should be possible to fully incorporate a company online without having to register physically with any authority in EU member states.
Click here for a detailed look at all changes introduced by the directive.
3. USA prepares for beneficial owner reporting rules
The Financial Crimes Enforcement Network (FinCEN) of the Treasury Department published final regulations on the UBO reporting requirements on September 29, 2022. In 2023, companies will need to evaluate whether their legal entities and beneficial owners are subject to reporting and ensure the correct systems and procedures are in place to capture data and prepare the filing, ahead of the requirement taking effect on January 1, 2024.
For more insights into the practice and dynamics of Entity Portfolio Management in the USA download our special report here.
4. China makes steps towards further digitalization
The Shanghai Administration for Industry and Commerce (AIC) has been working towards utilizing technology to realize online/remote filings, including the testing of e-signatures for legal representatives/directors. In September 2022, a unique ‘Entity Code’ was introduced. The code can be used for AIC filing purposes and by scanning it anyone can access the basic information of the entity including its approved business scope, past AIC checking record and administrative punishment record.
Find out more about navigating entity management in China here.
5. Further adoption of Ultimate Beneficial Owner laws
Increased demand for transparency and growing regulatory scrutiny has seen many jurisdictions across the world introduce Ultimate Beneficial Owner (UBO) reporting requirements and this trend is set to continue. In total there are now approximately 109 countries around the world with some kind of UBO regulation. Jurisdictions with new changes for 2023 include Panama, Spain and Ukraine.
To find out more on UBO compliance click here.
Toma Razmaite
Knowledge Integration Manager, Mercator by Citco, Citco Mercator, UAB
