Overview

This bill amends the Economic Crime (Transparency and Enforcement) Bill, strengthening requirements for overseas entities to disclose information about their beneficial ownership, particularly focusing on trusts and land transactions. It introduces stricter penalties for non-compliance and clarifies information sharing between government bodies.

Description

The amendments primarily enhance transparency regarding beneficial ownership of overseas entities, especially when trusts are involved. Key changes include:

• Expanded Disclosure Requirements: Overseas entities must now provide detailed information about trusts where a beneficial owner is a trustee, including details about the trust itself and a statement declaring whether all relevant information has been obtained.
• Land Transaction Reporting: The bill mandates reporting of land transactions by unregistered overseas entities within a specified transitional period, requiring details about the transactions and beneficial ownership at the time of the transaction.
• Enhanced Penalties for Non-Compliance: Increased fines and daily penalties are introduced for failing to comply with information disclosure requirements, differentiating between standard and aggravated offences (knowingly providing false information).
• Information Sharing: The bill clarifies the sharing of information about trusts between the registrar, the Secretary of State, and HMRC (Her Majesty's Revenue and Customs) for investigative and enforcement purposes, while establishing safeguards to prevent unauthorized disclosure.
• Definitions and Clarifications: The bill clarifies definitions related to trusts and "interested persons" in trusts, aiming to prevent loopholes in reporting requirements.

Government Spending

The bill doesn't directly specify increased government spending figures. However, increased enforcement activity and the establishment of mechanisms for information gathering and processing could imply additional costs for relevant government departments, including HMRC and the registrar. The exact amount is not specified in the provided text.

Groups Affected

• Overseas Entities: These entities will face increased reporting burdens and potential penalties for non-compliance.
• Trusts and Trustees: More stringent disclosure requirements apply to trusts and trustees acting on behalf of overseas entities, potentially requiring more administrative effort and legal expertise.
• HMRC and other government agencies: These bodies will likely have increased responsibilities for processing and verifying the reported information, and enforcing penalties for non-compliance.
• Land Registries in Scotland and England and Wales: The amendments specifically affect the land registries in both countries, requiring updates to their systems and processes.
• Individuals: Those involved in trusts and overseas entities will face potentially stricter compliance requirements and face penalties if inaccurate information is provided.

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