In a few weeks the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulation 2017 will come into force in the United Kingdom. Companies House have stated that the purpose of this legislation is to increase transparency of whom own and controls companies in the UK. These are changes that business owners need to be aware of and it may act as a reminder to review your Persons of Significant Control Register to ensure it is up to date.
The Current Position
Since 6 April 2016 UK companies have been obligated to disclose to Companies House who the PSC (Person of Significant Control) or REL (Registerable Legal Entity) is/are in respect of their business through filing their annual Confirmation Statement (CS01). The obligation, as it currently stands, requires businesses to undertake an analysis of their PSC/REL as well as maintain a register in their company books alongside the annual reporting obligation.
The New Position
From 26 June 2017 there will be greater obligations on businesses, who will no longer be able to choose to wait until their next Confirmation Statement to update Companies House. Under the new Regulations, companies will be obligated to update the Registrar every time there is a change. In practical terms, this means every time your business participates in a transaction that impacts the percentage shareholdings in your business, an analysis of the PSC position will need to be conducted.
If there is any change, whether this be that an individual has lost their PSC status or now satisfies a PSC condition; you must update your PSC register within 14 days of the triggering transaction and there will be another 14 days to send the information to Companies House using the PSC01 and PSC09 forms.
My Company Wasn’t Affected Before so Why Does it Matter?
Increasing the reporting obligations is not the only measure taken to broaden transparency within the ownership and control of companies. The rules on exemptions from these reporting obligations have changed and this could mean that your company will be required to report on its PSC/REL from June this year.
If you would like to speak to a member of the Corporate and Commercial team at Moore Blatch about ensuring you are ready for 26 June 2017; please get in touch by email or telephone at: 023 8071 8000.
"On 26 June 2017 changes will be made to UK anti-money laundering measures to help prevent money laundering and terrorist financing. It’ll increase the transparency of who owns and controls companies in the UK. This legislation will make changes to current requirements about people with significant control (PSC) information."