UK watchdog launches bill to protect corporate identity

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UK watchdog launches bill to protect corporate identity

The bill is intended to allow the government to crack down on kleptocrats, criminals and terrorists who misuse our open economy, and would require anyone setting up a company in the UK to verify their identity with Companies House, with the body able to challenge dubious information and inform security agencies of potential wrongdoing.

It said the actual number of UK companies used in major financial crime could be in the thousands or tens of thousands.

Over the years, lax controls on company incorporation have seen thousands of UK firms and partnerships used to launder the proceeds of corruption - hundreds of billions of pounds lost all over the world, according to Duncan Hames, director of policy at Transparency International UK.

The identities of those who own and direct companies and the professionals who provide these services will help make it harder for criminals to abuse and misuse of UK businesses, but the effective implementation of these measures is critical to their eventual success. The organisation said that Companies House needed sufficient resources to enforce the legislation and that no assurances had been given that additional funding would be provided.

Spotlight on Corruption welcomed the bill, with executive director Susan Hawley saying that UK corporate structures have been the vehicle of choice for fraudsters and money launderers for years owing to weaknesses at Companies House.