Companies House has removed more than 10,000 companies from the official register in a sweeping crackdown on fraud, corporate abuse and organised crime, after uncovering a network of just 30 entities responsible for incorporating up to 50,000 businesses suspected of being involved in illicit activities.
The purge, conducted in collaboration with the Insolvency Service, is part of a broader effort to restore integrity to the UK’s business registry and close longstanding loopholes that have allowed criminals to exploit shell companies for money laundering, property fraud and tax evasion.
Investigators have so far identified around £50 million in UK property assets linked to organised crime, which are now the subject of ongoing asset recovery investigations.
The two agencies are also examining more than 100,000 shell companies formed over the past two decades that are “known to be involved in a number of illicit activities”. Many of these entities are now being targeted for dissolution as part of an unprecedented enforcement drive.
Meg Ogunsola, Global Director of Entity Management Solutions at Vistra, praised the new enforcement stance: “Companies House deserves real credit for stepping up its role in tackling fraud and driving greater corporate accountability. The newly empowered registrar is already removing firms from the register for illicit activities, rejecting inaccurate submissions and applying a level of scrutiny we’ve never seen before.”
The removals come as Companies House powers have been significantly enhanced under recent legislative reforms, giving the registrar greater authority to query, reject and remove entities from the register if they are found to be non-compliant or fraudulent. These new powers are beginning to have a material impact on the makeup of the UK’s company registry.
The crackdown also arrives ahead of major regulatory changes due to take effect later this year. Mandatory identity verification for all company directors and persons of significant control (PSCs) will be introduced, aimed at preventing fake or hidden identities from being used to set up companies.
Ogunsola warned that the clock is ticking for businesses to ensure they are compliant: “Firms must prioritise identity verification for all directors and persons of significant control, ensuring the process is completed well before the autumn deadline. With mandatory ID verification and the ‘failure to prevent fraud’ offence coming into force this September, the message to firms is clear: take notice and take action now.”
The new “failure to prevent fraud” offence, part of the Economic Crime and Corporate Transparency Act, will mean companies can be held criminally liable if they fail to put reasonable controls in place to stop fraud carried out by employees or associates.
With the UK facing sustained international criticism for its role as a haven for opaque corporate structures, particularly in relation to property ownership, these measures represent a marked shift in tone and enforcement.
The newly proactive stance from Companies House suggests the days of anonymous, unverified corporate registrations may finally be numbered.
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10,000 companies removed from register for ‘illicit activities’ as crackdown intensifies