In the current economic and political climate, there has been significant pressure on the Government to address the continuing use of opaque foreign companies to acquire property in the UK. The Government’s response to these pressures took the form of the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA).
ECTEA may largely be seen as an anti-money laundering measure, since non-transparent overseas entities may be used in an effort to conceal funds derived from bribery, corruption, tax evasion or other unlawful conduct. ECTEA seeks to achieve its objectives by requiring overseas companies to comply with UK-equivalent transparency requirements before they can acquire real property in the UK.
Click here to read our briefing note that provides a high-level overview of the new regulatory environment in this area.