UK Economic Crime and Corporate Transparency Bill Passed by House of Lords, Moves Closer to Becoming Law

UK Economic Crime and Corporate Transparency Bill Passed by House of Lords, Moves Closer to Becoming Law

On Tuesday, July 4, the Economic Crime and Corporate Transparency Bill in the United Kingdom successfully cleared the House of Lords, bringing it one step closer to becoming law. The primary objective of this bill is to empower British authorities to seize and freeze cryptocurrencies that are utilized for criminal activities, including money laundering and terrorism financing.

A noteworthy amendment introduced in the bill allows courts to request action from authorities regarding crypto assets involved in criminal offenses. To identify cryptocurrencies associated with illicit activities, the UK has established crypto tactical advisers and implemented their presence in police departments across the nation.

In March 2023, the British government announced its commitment to combatting the criminal exploitation of cryptocurrencies as part of its three-year economic agenda.

While the bill has made significant progress by passing through the upper chamber, there are a few remaining steps in the legislative process, including a review by the lower chamber known as the House of Commons, agreement on any further amendments by both chambers, and ultimately, approval by King Charles III.

In recent months, UK lawmakers have made various additions to the bill. Notably, provisions introduced in November allow public authorities to seize digital assets associated with terrorism and gain control of properties that can aid in the identification of cryptocurrencies linked to criminal activities.

The UK initially introduced the Economic Crime and Corporate Transparency Bill in September 2022. At that time, Graeme Biggar, the director general of the National Crime Agency, expressed the necessity of these reforms, stating that both domestic and international criminals have long exploited UK company structures for money laundering and corruption, with an increasing reliance on cryptocurrencies. The implementation of these reforms is highly anticipated and welcomed as it will assist in cracking down on such illicit activities.

The Purpose of the Bill Passed by the House of Lords

In a statement issued in September, the government emphasized that the Economic Crime and Corporate Transparency Bill aims to enhance the UK’s reputation as an attractive environment for legitimate businesses to thrive while simultaneously eliminating the flow of illicit funds within the country. One of the key reforms introduced by this bill is the requirement for all individuals registering a company in the UK to verify their identities, thus addressing the misuse of companies for criminal purposes or by corrupt foreign officials.

The United Kingdom has undertaken several measures to establish a legitimate framework for the use of digital assets. Notably, the UK Law Commission has submitted a proposal to the government for the establishment of a comprehensive legal foundation for cryptocurrencies. Additionally, the UK government recently passed legislation to promote the safe adoption of cryptocurrencies.