"Weekly incorporations have fallen by around 30 per cent since November, when legislation came into force requiring all new company directors and people with significant control to verify their identity."
"Acting as a director without verification is now a criminal offence."
"I expected a significant drop, and 30 per cent is certainly that,"
"The sharp fall indicates how many sham companies and directors may previously have been entering the register unchecked,"
New rules require identity verification for all new company directors and people with significant control, and acting as an unverified director is a criminal offence. Weekly incorporations fell from 18,199 in the final week before the rules to fewer than 13,000 in each of the five weeks leading up to Christmas, a decline of around 30 percent. The measures form part of a broader overhaul of the company registry to prevent fraud, money laundering and other financial crimes. Verification requirements will be phased in for existing directors and beneficial owners over the next year. There are signs bad actors are shifting tactics, including increased use of paid-for proxy directors who sell verified identities to front companies.
Read at Business Matters
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