The Economic Crime and Corporate Transparency Act 2023.
The Economic Crime and Corporate Transparency Act 2023 , having received Royal assent on October 26, 2023, and became law. This legislation brings forth extensive reforms aimed at combatting economic crime and enhancing transparency in corporate entities. With a focus on proactively targeting organized crime, corruption, money laundering, and fraud
Secondary legislation, approved this week and set to take effect on April 26, 2024, empowers law enforcement with greater authority to seize, freeze, and recover cryptoassets associated with criminal activities. UK authorities are granted increased powers under this law. Notably, amendments to the Proceeds of Crime Act 2002 (POCA) support the recovery of cryptoassets. The Act introduces a new “failure to prevent fraud” offence, holding large firms accountable for inadequately safeguarding against fraud. Furthermore, Companies House is bestowed with enhanced powers to scrutinize and remove suspicious entries from their register. The legislation also strengthens anti-money laundering measures, fostering improved information sharing to dismantle barriers between the public and private sectors, thereby facilitating the prevention, investigation, and detection of economic crime.
The Economic Crime and Corporate Transparency Act 2023 changes relating to Cryptoassets.
Under the current legislation, illicit cryptoassets cannot be seized in criminal proceedings unless there is an arrest or conviction. This potential loophole allows criminals to transfer targeted assets before law enforcement can obtain court approval for freezing them. The new law eliminates the arrest requirement, enabling courts to order the confiscation of assets before an arrest occurs. While assets can still be frozen to prevent movement, their formal seizure from suspects is now possible without waiting for an arrest or conviction.
This modification streamlines enforcement efforts, reducing delays and preventing the rapid movement of funds, a particularly pertinent concern in the case of cryptocurrencies
Crypto Criminal Activity Crackdown
In 2021, the National Crime Agency estimated estimated illicit crypto transactions associated with the U.K. to be approximately £1.24 billion. Notably, U.K. authorities have successfully confiscated millions of pounds worth of cryptocurrency linked to illegal activities. In 2022 alone, more than £300 million was seized, following a substantial seizure of around £180 million in cryptocurrency during the previous year. As part of a three-year plan, the U.K. intends to allocate approximately £100 million ($124 million) to combat economic crime, marking an almost 50% increase from the expenditure in 2020. The government’s decisive measures reflect a commitment to addressing the escalating threats posed by cryptocurrencies. This proactive approach instills confidence in the prospect of a more secure and regulated crypto environment as we enter 2024
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© My Accountancy Team 2023 All Rights Reserved – The above articles are provided for guidance only and may not cover your personal circumstances so you should not rely on them. It is important that you seek appropriate professional advice which takes into account your personal circumstances where you can provide the full facts of the case and all documents related to your case. My Accountancy Team Ltd t/a mycryptotax.co.uk, cannot be held responsible for the consequences of any action or the consequences of deciding not to act.
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