Solicitors required to report discrepancies in people with significant control (PSC) information to Companies House will benefit from an improved online service.
The changes will affect professional firms under the scope of the Fifth Anti-Money Laundering Directive (5MLD).
Companies have been required to identify and record the details of the people who own or control their company – known as beneficial owners – since 2016.
But under anti-money laundering rules, obliged entities – such as solicitors and conveyancers – are ordered to carry out customer due diligence and report discrepancies in PSC information to Companies House.
It is a legal requirement to inform Companies House that there is a material difference between the information that they hold about a PSC of a company (including limited liability partnerships and Scottish limited or qualifying partnerships) and the information that’s on the PSC register.
Companies House says the new digital service will make this process both “faster and easier”.
“While our previous reporting tool has allowed obliged entities to submit discrepancy reports, the new service will drastically improve the user journey and quality of information reported,” said Lee Robins, Enforcement Service Manager at Companies House.
“All discrepancies investigated and data corrected directly improves the quality and integrity of the PSC register. This data is crucial in the wider challenge of tackling economic crime.”
Earlier this year, it was revealed that the maximum fine for failing to comply with anti-money laundering (AML) regulations would be increased from £2,000 to £25,000.
The Solicitors Regulation Authority (SRA) said the proposals would “resolve issues much more quickly” and allow the Solicitors Disciplinary Tribunal (SDT) to “focus on the most serious cases where there is need for greater fines and sanctions such as suspension and strike off”.
To report a discrepancy using the new online service, solicitors will need:
- the company number of the entity being reported as having a discrepancy
- the type of discrepancy
- the information on the PSC register you believe is incorrect, for example, an incorrect address or an error in the nature of control
- the correct information as you believe it should be shown on the register
- any other relevant information about the discrepancy that supports the report.
For help and advice with related matters, please get in touch with our legal finance team today.