The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 4) Regulations 2025 establish commencement dates for several sections of the Act.
Key provisions brought into force include sections relating to identity verification, unique identifiers for companies, and a new offence of failing to prevent fraud.
The regulations also amend previous commencement regulations and update references to commencement dates in related legislation to reflect the actual dates provisions came into force, correcting an error regarding the required publication of guidance.
Arguments For
Strengthening corporate transparency: The regulations bring into force provisions designed to enhance transparency and accountability in the corporate sector, aiming to deter economic crime. This is supported by the stated aims of the Economic Crime and Corporate Transparency Act 2023.
Improving identity verification processes: The commencement of sections related to identity verification procedures helps ensure greater accuracy and security in company registration and related processes. The argument for the effectiveness of improved verification processes is supported by relevant legislation and best practices in other jurisdictions.
Implementing a new offense: This brings into full effect a new offense of failing to prevent fraud, strengthening the legal framework to combat economic crimes. Evidence suggests that such broad-based offenses are effective in deterring and investigating these crimes.
Timely implementation of the Act: Staggered implementation of provisions within the Act provides a measured approach, allowing for resources and infrastructure necessary for compliance to be put in place. Legal requirements may necessitate the phasing of changes over time to avoid disruption.
Arguments Against
Potential for regulatory burden: Implementing the new regulations could place a significant administrative and financial burden on businesses, especially smaller companies, potentially hindering economic activity. This depends on the associated compliance costs, implementation complexities and potential for errors or conflicts with existing regulations.
Unintended consequences: The implementation of specific provisions could create unforeseen challenges or negative effects on specific sectors of the economy, impacting business operations. Further research and analysis may be required to fully assess the potential impacts.
Overlapping regulations: The Act and associated regulations might overlap or conflict with existing legislation, raising concerns about clarity and coherence. A risk assessment to mitigate overlaps would be necessary during implementation.
Lack of resources for enforcement: The capacity of enforcement bodies might be strained by the increased responsibilities in compliance and enforcement activities brought on by this legislation.
The Secretary of State makes these Regulations in exercise of the powers conferred by section 219(1) and (9)(a) of the Economic Crime and Corporate Transparency Act 2023[1] and section 104(1)(a) of the Deregulation Act 2015[2].
In accordance with section 219(8) of the Economic Crime and Corporate Transparency Act 2023, the Secretary of State has published guidance under section 204(3) of that Act.
These regulations are created under the authority granted by sections 219(1), 219(9)(a) of the Economic Crime and Corporate Transparency Act 2023, and section 104(1)(a) of the Deregulation Act 2015.
Accompanying guidance, as mandated by law, has also been issued.
- Citation, extent and interpretation
(1) These Regulations may be cited as the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 4) Regulations 2025.
(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
(3) In these Regulations, “the Act” means the Economic Crime and Corporate Transparency Act 2023.
This section provides the official title for the regulations and clarifies their scope.
The regulations apply across the whole of the United Kingdom.
It also defines 'the Act' as referring to the Economic Crime and Corporate Transparency Act 2023 for ease of reference.
- Commencement on 18th March 2025
The following provisions of the Act come into force on 18th March 2025—
(a) sections 65 (procedure etc for verifying identity) and 66 (authorisation of corporate service providers), so far as not already in force;
(b) section 68 (allocation of unique identifiers), so far as not already in force;
(c) section 70 (registrar’s power to strike off company registered on false basis), and
(d) section 136(2) (the register of limited partnerships).
This section specifies that certain sections of the Economic Crime and Corporate Transparency Act 2023 will come into effect on March 18th, 2025.
These sections focus on identity verification procedures, authorization of corporate service providers, the allocation of unique identifiers, and the register of limited partnerships.
- Commencement on 1st September 2025
Sections 199 to 206 of, and Schedule 13 to, the Act (failure to prevent fraud) come into force on 1st September 2025, so far as not already in force.
Sections 199 to 206 and Schedule 13 of the Act, which address the offence of failing to prevent fraud, will come into force on September 1st, 2025.
- Amendment of the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024
Regulation 3 of the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 (commencement on 1st September 2025)[3] is revoked.
Regulation 3 of the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024 is cancelled.
- Amendment of provisions expressed by reference to commencement
(1) In regulation 1(2) of the Register of Overseas Entities (Annotation and Removal) Regulations 2024[4], for “the day section 170 (administrative removal of material from register) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““4th March 2024””.
(2) In the Registrar (Annotation, Removal and Disclosure Restrictions) Regulations 2024[5]—
(a) in regulation 1(2)(a), for “the day section 85 (administrative removal of material from the register) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““4th March 2024””;
(b) in regulation 1(2)(b), for “the day section 52 (protection of date of birth information) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““4th March 2024””;
(c) in regulation 17, for “the day section 85 (administrative removal of material from the register) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““4th March 2024””.
(3) In regulation 1(2) of the Registered Office Address (Rectification of Register) Regulations 2024[6], for “when section 105 (registered office: rectification of register) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““on 4th March 2024””.
(4) In regulation 1(2) of the Service Address (Rectification of Register) Regulations 2024[7], for “when section 106 (rectification of register: service addresses) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““on 4th March 2024””.
(5) In regulation 1(2) of the Principal Office Address (Rectification of Register) Regulations 2024[8], for “when section 107 (rectification of register: principal office addresses) of the Economic Crime and Corporate Transparency Act 2023 comes fully into force” substitute ““on 4th March 2024””.
(6) In regulation 1(2) of the Limited Liability Partnerships (Application of Company Law) Regulations 2024[9], for “when section 1 (the registrar’s objectives) of the Economic Crime and Corporate Transparency Act 2023 comes into force” substitute ““on 4th March 2024””.
(7) In regulation 1(2) of the Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024[10], for the words from “whichever is the later of” to the end substitute ““21st March 2024””.
This section corrects inconsistencies in previous regulations by replacing references to future commencement dates with the actual dates (March 4th, 2024, and March 21st, 2024) on which specific sections of the Economic Crime and Corporate Transparency Act 2023 came into force.
This ensures alignment across related legislation and clarifies their effective dates.
Justin Madders
Parliamentary Under Secretary of State
Department for Business and Trade
13th March 2025
This section shows the signatory information confirming the legislation's approval and date of signing.
Explanatory Note
(This note is not part of the Regulations)
These Regulations are the fourth commencement regulations made under the Economic Crime and Corporate Transparency Act 2023 (c. 56) (“the Act”). Regulation 2 commences certain provisions in Parts 1 and 2 of the Act. Regulation 3 brings measures creating a new offence of failing to prevent fraud fully into force in all of the United Kingdom. Regulation 4 amends the third set of commencement regulations which failed to comply with the requirement that guidance must be published before regulations bringing section 199 of the Act into force are made. Regulation 5 replaces references in certain regulations to the commencement of a provision with a reference to the actual date on which the provision came into force.
NOTE AS TO EARLIER COMMENCEMENT Regulations
(This note is not part of the Regulations)
The following provisions of the Economic Crime and Corporate Transparency Act 2023 (c. 56) have been brought into force by commencement regulations made before the date of these Regulations.
[Table of previously commenced provisions omitted for brevity]
The Explanatory Note provides a summary of the regulations, explaining the purpose of each regulation.
It also notes that earlier regulations already brought several sections of the Act into force and provides a table listing these provisions and their commencement dates (Table not included in this JSON response for brevity).
The note clarifies the correction made in Regulation 4, relating to the omission of guidance publication prior to the third set of regulations.