New anti-money laundering measures being adopted will change the deadlines companies have to meet when keeping their records up-to-date with Companies House.
Rick Smyth, Partner in the corporate team at Wilkes outlines the changes:
On 26 June 2017 new UK anti-money laundering measures will come into force to help further inhibit money laundering and terrorist financing.
The aim is to increase corporate transparency in terms of who owns and controls companies in the UK. The changes will step up current record-keeping requirements regarding details of people with significant control (PSC).
At the moment, companies are only obliged to update their PSC register at Companies House once a year when company officers file the confirmation statement using Companies House form CS01. However that is about to change:
From 26 June 2017, the PSC register at Companies House can no longer be updated using the confirmation statement. Such a change can only be recorded on the public register by using Companies House forms PSC01 to PSC09 whenever there’s a change. There are two key deadlines to note.
Officers of a company must:
- Update the Company’s own register within 14 days from completion of the change; and
- File details of the change at Companies House within 28 days from completion (using the relevant forms referred to above).
Failure to file such changes will result in criminal offences being committed by the officers of the company. The company and its officers will also be liable to pay financial penalties.
Some public companies known as ‘DTR5 companies’ may also need to provide PSC information. If a company has traded on an EEA or Schedule 1 specified market, it is still exempt, if not there will be a requirement to send PSC information to Companies House when changes take place.
These changes alter the administrative burden for Companies active in the UK and increase the amount of paperwork required when there are changes in the ownership and control of Companies from 26 June 2017.
To avoid being penalised company secretaries and directors must keep their PSC register up-to-date.
Rick Smyth and The Wilkes Partnership corporate team are happy to assist in resolving any PSC-related issues that companies may face in this ever-changing legal landscape.
For help and advice on any of the above please get in touch with Rick Smyth on 0121 710 5932 or via email at [email protected].