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Economic Crime (Transparency and Enforcement) Act 2022 in Scotland

2022 c. 10 · Enacted 15 March 2022 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 21 March 2024.

An Act to set up a register of overseas entities and their beneficial owners and require overseas entities who own land to register in certain circumstances; to make provision about unexplained wealth orders; and to make provision about sanctions.

[15th March 2022]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1

Annotations to the whole text

Modifications

C1

Act: power to amend conferred (26.10.2023 for specified purposes) by Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 178(1), 219(1)(2)(b)

Contents

  1. Part 1: Registration of overseas entities
  2. Introduction
  3. 1Overview
  4. 2Definition of “overseas entity” etc
  5. The register and registration
  6. 3Register of overseas entities
  7. 4Application for registration
  8. 5Registration and allocation of overseas entity ID
  9. 6Notice of registration
  10. Updating
  11. 7Updating duty
  12. 8Failure to comply with updating duty
  13. Removal
  14. 9Application for removal
  15. 10Processing of application under section 9
  16. 11Transfer of documents to Public Record Office
  17. Obtaining, updating and verifiying information
  18. 12Identifying registrable beneficial ownersDuty to take steps to obtain information
  19. 13Additional powers to obtain information
  20. 14Sections 12 and 13: supplementary
  21. 15Failure to comply with notice under section 12 or 13
  22. 15AFalse statements under section 12 or 13: basic offence
  23. 15BFalse statements under section 12 or 13: aggravated offence
  24. 16Verification of registrable beneficial owners and managing officers
  25. Exemptions
  26. 17Power to modify application process etc in certain cases
  27. 17AExceptions to duty to provide change of beneficiary information
  28. 18Exemptions
  29. Language requirement
  30. 19Documents to be in English
  31. Annotation of the register
  32. 20Annotation of the register
  33. Inspection of the register and protection of information
  34. 21Inspection and copies of register
  35. 22Material unavailable for inspection
  36. 23Disclosure of protected information
  37. 24Consultation about regulations under section 23
  38. 25Power to protect other informationPower to make regulations protecting material
  39. 26Data protection
  40. Correction or removal of material on the register
  41. 27Resolving inconsistencies ...
  42. 28Administrative removal of material from the register
  43. 28AFurther provision about removal of material from the register
  44. 29Application to rectify register Repealed
  45. 29ASection 29A Repealed
  46. 30Court order to rectify register
  47. 31Court powers on ordering removal of material from the register
  48. False statements
  49. 32False statements: basic offence
  50. 32AFalse statements: aggravated offence
  51. Land ownership and transactions
  52. 33Land ownership and transactions
  53. 34Power to require overseas entity to register if it owns certain land
  54. Supplementary provision about offences
  55. 35Liability of officers in default
  56. 36Meaning of “daily default fine”
  57. 37Consent required for prosecutions
  58. 38Further provision about proceedings
  59. Financial penalties
  60. 39Financial penalties
  61. Sharing of information by HMRC
  62. 40Sharing of information by HMRC
  63. Transitional provision
  64. 41Applications in the transitional period: information about land transactions
  65. 42Requirement for certain unregistered overseas entities to provide information
  66. 43Section 42: supplementary
  67. 43ADuty to deliver further information for transitional cases
  68. Interpretation
  69. 44Interpretation
  70. Part 2: Unexplained wealth orders
  71. 45Imposition of unexplained wealth orders on officers etc of property holder: England and Wales and Northern Ireland
  72. 46Imposition of unexplained wealth orders on officers etc of property holder: Scotland
  73. 47Alternative test to the income requirement: England and Wales and Northern Ireland
  74. 48Alternative test to the income requirement: Scotland
  75. 49Power to extend period for which interim freezing order has effect: England and Wales and Northern Ireland
  76. 50Power to extend period for which interim freezing order has effect: Scotland
  77. 52Limits on costs orders in relation to unexplained wealth orders: England and Wales and Northern Ireland
  78. 53Limits on expenses orders in relation to unexplained wealth orders: Scotland
  79. Part 3: Sanctions
  80. Chapter 1: Monetary penalties
  81. 54Imposition of monetary penalties
  82. 55Procedural rights
  83. 56Reporting on breach of financial sanctions
  84. Chapter 2: Imposition of sanctions etc
  85. Sanctions regulations
  86. 57Streamlining process of making sanctions regulations
  87. Designation
  88. 58Urgent designation of persons by name
  89. 59Urgent designation of persons by description
  90. 60Specified ships
  91. 61Existing sanctions regulations
  92. Reviews and reports
  93. 62Removal of reviews
  94. 63Removal of reporting requirements
  95. 64Court reviews: restrictions regarding damages
  96. Miscellaneous
  97. 65Sharing of information
  98. 66Consequential provision
  99. Part 4: General
  100. 67Regulations
  101. 68Extent
  102. 69Commencement
  103. 70Short title
  104. Schedule 1: Applications: required information
  105. Part 1: Introduction
  106. 1Paragraph 1
  107. Part 2: Overseas entities
  108. 2Paragraph 2
  109. Part 3: Registrable beneficial owners
  110. 3Individuals
  111. 4Governments and public authorities
  112. 5Other legal entities
  113. Part 4: Managing officers
  114. 6Individuals
  115. 7Persons other than individuals
  116. Part 5: Trusts
  117. 8Paragraph 8
  118. Part 6: Powers to make further provision under this Schedule
  119. 9Paragraph 9
  120. 10Paragraph 10
  121. Schedule 2: Registrable beneficial owners
  122. Part 1: Meaning of “registrable beneficial owner”
  123. 1Introduction
  124. 2Registrable beneficial owners: individuals
  125. 3Registrable beneficial owners: legal entities
  126. 4Registrable beneficial owners: government or public authority
  127. Part 2: Meaning of “beneficial owner”
  128. 5Introduction
  129. 6Beneficial owners
  130. 6APersons treated as beneficial owners where entity holds land as nominee
  131. Part 3: Meaning of “subject to its own disclosure requirements”
  132. 7Paragraph 7
  133. Part 4: Beneficial owners exempt from registration
  134. 8“Exempt from being registered”
  135. 9Holding an interest in an overseas entity etc
  136. Part 5: Supplementary provision about interpretation of Schedule
  137. 10Introduction
  138. 11Joint interests
  139. 12Joint arrangements
  140. 13Calculating shareholdings
  141. 14Voting rights
  142. 15Voting rights
  143. 16Rights to appoint or remove members of the board
  144. 17Rights to appoint or remove members of the board
  145. 18Shares or rights held “indirectly”
  146. 19Shares held by nominees
  147. 20Rights treated as held by a person who controls their exercise
  148. 21Rights exercisable only in certain circumstances etc
  149. 22Rights attached to shares held by way of security
  150. 23Limited partnerships
  151. 24Meaning of “director”
  152. Part 6: Powers to amend this Schedule
  153. 24AExpansion of meaning of “registrable beneficial owner” where trusts in view
  154. 25Paragraph 25
  155. Schedule 4: Land ownership and transactions: Scotland
  156. Part 1: Amendments
  157. 1Conveyancing (Scotland) Act 1924
  158. 2Land Registration etc. (Scotland) Act 2012 (asp 5)
  159. 3Land Registration etc. (Scotland) Act 2012 (asp 5)
  160. 4Land Registration etc. (Scotland) Act 2012 (asp 5)
  161. 5Land Registration etc. (Scotland) Act 2012 (asp 5)
  162. 6Land Registration etc. (Scotland) Act 2012 (asp 5)
  163. 7Land Registration etc. (Scotland) Act 2012 (asp 5)
  164. 8Land Registration etc. (Scotland) Act 2012 (asp 5)
  165. 9Land Registration etc. (Scotland) Act 2012 (asp 5)
  166. Part 2: Transition: deeds registered pre-commencement
  167. 10Duty to register as an overseas entity within transitional period
  168. 11Disapplication of certain provisions during transitional period
  169. 12Interpretation
  170. 13Interpretation
  171. Part 3: Power to make further provision
  172. 14Paragraph 14
  173. Schedule 6: Duty to deliver further information for transitional cases
  174. 1Application of this Schedule
  175. 2Duty to deliver statements and information
  176. 3Information about changes in beneficial ownership
  177. 4Information about trusts and changes in beneficiaries
  178. 5Information about changes in trusts of which registrable beneficial owners trustees
  179. 6Compliance by confirmation of information previously provided
  180. 7Failure to comply with this Schedule
  181. 8Obtaining information
  182. 9Power to exclude descriptions of registrable beneficial owner