Economic Crime (Transparency And Enforcement) Act Provides Transitional Period

• Published date: 17 January 2023
• Subject Matter: Corporate/Commercial Law, Compliance, Corporate and Company Law, Directors and Officers
• Law Firm: Pillsbury Winthrop Shaw Pittman
• Author: Mr James Campbell
• topic: Contracts,Trust Law,Admiralty,Banking and Finance Law,Corporate / Commercial,Criminal Law,Real Estate

TAKEAWAYS

• Failure to comply with the Act will expose the overseas entity and its officers to criminal sanctions and could potentially impact banks who have lent monies secured on the UK property.
• The Act applies to various transactions that took place on or after January 1,1999.
• A person or corporate entity will be registrable if, in relation to the overseas entity, they (or a trust or firm which they control) own more than 25% of the shares or voting rights have the right to appoint or remove a majority of the board of directors or they have significant influence or control over the overseas entity.

The Economic Crime (Transparency and Enforcement) Act which came into force last year provides a transitional period ending on January 31, 2023, during which overseas entities that own (or want to sell or transfer) or lease UK real estate must register the beneficial owners or managing officers of that overseas entity at...