The Register of Overseas Entities (Verification and Exceptions) (Amendment) Regulations 2023

On December 19, 2023, the Register of Overseas Entities (Verification and Exceptions) (Amendment) Regulations 2023 were published on legislation.gov.uk, the official UK platform for the publication of legal texts. To recall, the „Register of Overseas Entities“ was created by the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA) in an emergency in response to Russia’s invasion of Ukraine. Under the Act, overseas entities wishing to own or lease property in the UK must identify and register their beneficial owners with the Register in an effort to deliver transparency about who ultimately owns and controls overseas entities that own property in the UK.
The now published regulations provide for an exemption for large pension schemes (250 beneficiaries or more) from being categorized as registerable beneficial owners under Schedule 6 of the ECTEA 2022. This exemption shields them from anti-avoidance measures outlined in the schedule. In addition, the regulations exempt all pension schemes from having to disclose „in-year changes to trusts to the Registrar under Section 7 (updating duty) and 9 (application for removal) of the Economic Crime (Transparency and Enforcement) Act 2022“.
Additionally, the regulations aim to fortify anti-avoidance measures by amending existing rules related to the „Register of Overseas Entities“. Overseas entities are now mandated to disclose verified information about beneficial owners who were not initially recorded during registration with the „Companies House“ (prior to February 28, 2022). This measure is intended to address cases where individuals restructure ownership or transfer assets to evade impending sanctions.