The UK House of Lords Approves Economic Crime and Corporate Transparency Bill
The Economic Crime and Corporate Transparency bill in the United Kingdom has received final approval from the House of Lords. Introduced in September 2022, the bill aims to enhance the authority of financial regulators to seize funds from financial crimes, including those involving cryptocurrencies.
Over the course of 12 months, the bill successfully passed through all stages in both the House of Commons and House of Lords, reflecting a broader trend towards cryptocurrency regulation in the UK and other jurisdictions.
Currently in its final stage, the bill is being considered for amendments and Royal Assent. The House of Lords has proposed new amendments, such as the “failure to prevent fraud” clause, which expands circumstances under which an organization can be found guilty of an offense related to fraud committed by its employees for its benefit.
UK Takes Action Against Crypto Crime
The bill also grants local authorities the power to freeze crypto assets connected to criminal activities. It has been praised for removing unnecessary barriers to effective investigations.
This legislation is seen as a positive step towards preventing bad actors from quickly moving flagged assets out of the country’s jurisdiction. Additionally, it has the potential to contribute millions to public funds.
Specifically, the bill removes the requirement for an arrest warrant before law enforcement can confiscate flagged digital assets in criminal cases.
Phil Ariss, TRM Labs’ director of the UK public sector, commended this development and highlighted its usefulness in cases where assets have been identified with significant links to criminality but where prosecution is unlikely due to perpetrators being outside of the UK but targeting UK residents.
The bill also includes provisions for civil forfeitures, allowing crypto assets tied to illicit activities to be seized even without a criminal conviction.
Hot Take: The UK Strengthens Crypto Regulation to Combat Crime
The Economic Crime and Corporate Transparency bill passing its final stages of approval in the UK House of Lords signifies a significant step towards combating crypto-related crime. With the expansion of powers for financial authorities, including the ability to confiscate funds from financial crimes involving cryptocurrencies, the bill enhances the country’s ability to tackle illicit activities in the digital asset space.
By granting local authorities the power to freeze crypto assets connected to criminal activities, the bill removes barriers to investigations and prevents bad actors from quickly moving flagged assets away from UK jurisdiction. Moreover, the potential contribution of millions to public funds through these measures is an added benefit.
The inclusion of civil forfeitures allows for the seizure of crypto assets tied to illicit activities, even without a criminal conviction. This proactive approach demonstrates the UK’s commitment to preventing and deterring financial crimes involving cryptocurrencies.
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