A House of Commons committee report, with recommendations to government, warns that the UK faces rapidly growing economic security threats and concludes the current regime is no longer fit for the future.
Key developments include:
➡️ Enforcement levels remain low: HMRC secured only 26 sanctions/export control prosecutions over 14 years, raising concerns that breaches routinely go unpunished;
➡️ Companies House enforcement remains limited: While reforms have strengthened its powers, enforcement outcomes and fine recovery rates are still evolving;
➡️ New powers exist but remain unused: The Economic Crime & Corporate Transparency Act 2023 gives Companies House stronger enforcement authority, yet no prosecutions have been brought, and MPs suggest that this is undermining the UK’s wider economic security posture; and
➡️ Parliament calls for stronger disclosure and tougher action: MPs urge the Government to clarify when naming firms is lawful and in the public interest, and to remove barriers that prevent public or private disclosure of enforcement outcomes.
✅ As economic threats intensify, firms should review their business-wide risk assessments (BWRAs), to ensure that the evolving threats faced by the firm are appropriately identified and addressed.
💡 Plenitude’s Advisory & Transformation Services deliver Business-Wide Risk Assessments, helping clients to assess their inherent and residual financial crime risks. Visit our website for more information: https://www.plenitudeconsulting.com/services/advisory-and-transformation