- 25/01/2023
- Posted by: Valerie Vaz MP
- Category: News
The House debated and voted for amendments to the Economic Crime and Corporate Transparency Bill on the 24 and 25 January 2023. The Bill’s objectives are to prevent organised criminals, fraudsters, kleptocrats and terrorists from using companies and other corporate entities to abuse the UK’s open economy and to strengthen the UK’s broader response to economic crime. The Bill also aims to support enterprise by enabling Companies House to deliver a better service for over four million UK companies, and improving the reliability of its data to inform business transactions and lending decisions across the economy. These are the main amendments
New Clause 22 This new clause would disqualify any individual convicted of an offence for a serious breach of the National Minimum Wage Act 1998, such as a deliberate refusal to pay National Minimum Wage, from serving as a company director.
Person convicted under National Minimum Wage Act not to be appointed as director
‘(1) The Company Directors Disqualification Act 1986 is amended as follows.
(2) After Clause 5A (Disqualification for certain convictions abroad) insert—
“5B Person convicted under National Minimum Wage Act not to be appointed as director
(1) A person may not be appointed a director of a company if the person is convicted of a criminal offence under section 31 of the National Minimum Wage Act 1998 on or after the day on which section 32(2) of the Economic Crime and Corporate Transparency Act 2022 comes fully into force.
(2) It is an offence for such a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the High Court.
(3) An appointment made in contravention of this section is void.”’
I voted in favour of this motion, which was not passed, Ayes: 232, Noes: 296.
New Clause 34 This new clause creates an obligation for the Secretary of State to publish a report into the number of Authorised Corporate Service Providers with a head office based outside the United Kingdom and the number of foreign corporate service providers authorised by the regulations set out in new section 1098I(1) of the Companies Act 2006.
“(1) Within six months of the day on which this Act is passed, the Secretary of State must publish a report on the authorisation of foreign corporate service providers.
(2) The report in subsection (1) must include but is not limited to—
(a) the number of authorised corporate service providers with a head office based in a territory outside the United Kingdom,
(b) the number of foreign corporate service providers authorised as set out in section 1098I(1) of the Companies Act 2006, and
(c) the number of foreign corporate service providers identified in subsection (2)(b) by territory.”—
I voted in favour of this motion, which was not passed, Ayes: 234, Noes: 291.
New Clause 36 This new clause seeks to ensure that existing company registrations contain accurate, up to date information. It also imposes a requirement for the Registrar to update Parliament on the progress of updating the register.
Integrity of the register
“(1) The registrar must ensure that information set out in the register prior to the provisions of this Act coming into force is accurate, up to date, and meets the requirements set out in the Act.
(2) The duty under subsection (1) includes ensuring that each entry lists the unique identification number of the Director of a company.
(3) The registrar will also make an annual report to Parliament on the status of its work to update existing company registrations.
(4) The report under subsection (3) must include—
(a) information on how many existing company registrations the registrar has evaluated to check the accuracy of the information provided, and
(b) details of how many existing company registrations have still to be evaluated by the Registrar to check the accuracy of the information provided.”
I voted in favour of this motion, which was not passed, Ayes: 233, Noes: 290.
26 January 2023: Day 2
New Clause 3
“Home Office review of the Tier 1 (Investor) visa scheme: publication
Within a day of the passage of this Act, the Secretary of State must publish in full the findings of the Home Office review of the Tier 1 (Investor) visa scheme which relate to economic crime.” —
I voted in favour of this motion, which was not passed, Ayes: 220, Noes: 290.
New Clause 26 This new clause would amend the Sanctions and Anti-Money Laundering Act 2018 to ensure that an Order in Council requiring open registers of beneficial ownership in the British Overseas Territories comes into force no later than 30 June 2023.
Beneficial owners in overseas territories
‘(1) The Sanctions and Anti-Money Laundering Act 2018 is amended as follows.
(2) In section 51, after subsection (5) insert—
“(5A) The Secretary of State must ensure that the Order in Council under subsection (2) above comes into effect on date no later than 30 June 2023.”
I voted in favour of this motion, which was not passed, Ayes: 222, Noes: 289.
New Clause 27 This new clause would require the Secretary of State to prepare and publish a strategy on the potential establishment of a fund to provide compensation to victims of economic crime.
Compensation for Victims of Economic Crime
“(1) The Secretary of State must, no later than 90 days from the date on which this Act comes into force, publish and lay before Parliament a strategy for the potential establishment of a fund for the compensation of victims of economic crime.
(2) The strategy may include provisions on the management and disposal of any assets realised by the government, or any body with law enforcement responsibilities in relation to economic crime, under relevant UK legislation.”
I voted in favour of this motion, which was not passed, Ayes: 221, Noes: 289.
The Bill passed its third reading and will now move to the House of Lords.