Overview
In July 2025, a coordinated enforcement operation led by the National Economic Crime Centre (NECC) resulted in the removal of 11,500 UK companies from the Companies House register. These entities failed to comply with Registered Office requirements under the Companies Act 2006 and were identified as high-risk vehicles for economic crime and money laundering.
The joint effort involved Companies House, HMRC, the FCA, the Insolvency Service, OPBAS, UK police, and others. Investigations uncovered widespread misuse of addresses by company formation agents, non-compliant trust and company service providers (TCSPs), and the registration of thousands of shell entities.
The operation supports wider reforms under the Economic Crime and Corporate Transparency Act, strengthening UK corporate transparency and anti-money laundering enforcement.
National Economic Crime Centre
The National Economic Crime Command consists of three cross-functions that operate independently from one another:
- the National Economic Crime Centre (NECC)
- the United Kingdom Financial Intelligence Unit (UKFIU) and
- the Proceeds of Crime Centre (PoCC)
The NECC brings together law enforcement agencies, government departments, regulatory bodies and the private sector, with a shared aim to drive down economic crime in the UK. The NECC is housed within the National Crime Agency.
11,500 Companies Removed
As a result of a co-ordinated effort 11,50 companies were removed from the companies house register over the last year.
The co-ordinated effort involved:
- the National Crime Agency, Companies House
- HM Revenue & Customs
- The Insolvency Service
- the Financial Conduct Authority
- the Office for Professional Body Anti-Money Laundering Supervision
- Home Office, and
- UK police.
The reason stated on the NCA website was that these companies did not comply with the Registered Office requirements under the Companies Act 2006.
The Aim of The Project
The project was designed to identify and enable enforcement action against high-risk company incorporation locations and corporate entities believed to be enabling criminality in the UK and overseas
Scale of the Problem: Money Laundering and Corporate Abuse
- The crackdown highlights the significant scale of money laundering within the UK. Rachael Herbert, Director of the NECC, estimates "over £100 billion is laundered through and within this country each year, a significant proportion of which is facilitated by UK-registered corporate structures."
- These illicit activities "amplify harm from serious and organised crime, including organised immigration crime and fraud, by funding further criminality and undermining confidence in our financial sector." (Rachael Herbert, NECC)
- Criminals are actively "abusing and exploiting the system" of company registration, often through "complicit" third-party agents. (Martin Swain, Companies House)
Highlights
The main highlights of the 16 July 2025 post on the NCA website was:
- Intensification Period: A two-day intensification period took place, involving officers from the Metropolitan Police, City of London Police, and South Wales Police, alongside HMRC's Economic Crime Supervision.
- Premises Visits and Investigations: During the intensification, officers visited eleven addresses where 30 high-risk trust and company service providers (TCSPs) operated. They confirmed a lack of real business activity and non-compliance with the Companies Act by company formation agents.
- Discovery of Mass Registrations at Single Addresses: An example - a single address in London was used to register between 4,000 and 5,000 businesses, despite these businesses being based elsewhere in the UK and overseas.
- Enforcement Actions Begin: As a result of the multi-agency effort, initial enforcement actions commence:
- Key individuals involved in company formation are barred from making further registrations.
- Criminal referrals are made to the Insolvency Service.
- 3 high-risk TCSPs are slated for closure.
- 27 additional high-risk TCSPs face enforcement action.
- Significant criminal property is identified for civil recovery.
Wider Efforts
Wider Cross-Government Efforts: The crackdown forms part of broader efforts, including the implementation of landmark reforms under the Economic Crime and Corporate Transparency Act at Companies House (e.g., Authorised Corporate Service Provider regime, ID Verification requirements).
Commentary:
Rachael Herbert: Director of the National Economic Crime Centre (NECC) said:
"... Money laundering amplifies harm from serious and organised crime, including organised immigration crime and fraud, by funding further criminality and undermining confidence in our financial sector..."
Dave Magrath: Director of Investigation and Enforcement Services at The Insolvency Service:
"Tackling economic crime and improving corporate transparency is a key priority for the Insolvency Service..."
Martin Swain: Director of Intelligence and Law Enforcement Engagement at Companies House
“We will continue to support our law enforcement and regulatory partners in identifying, targeting and stopping abuse of the company register.”
Louise MacDonald: Deputy Director of Economic Crime at HMRC’s Fraud Investigation Service
“As a money laundering supervisor, we know criminals will prey on weaknesses. That’s why we work tirelessly to ensure businesses have defences in place to protect themselves and the UK economy from criminal attack.”
Deputy Commissioner Nik Adams, National Coordinator for Economic and Cyber Crime for the City of London Police
"...Criminals who use UK-registered companies to disguise illegal activity and move illicit funds are not just breaking the law - they are undermining the integrity of our financial system and damaging public trust.
“By identifying and disrupting these networks, we are helping to ensure that the UK remains a hostile environment for those who seek to exploit it for criminal purposes..."
Lord Hanson: Fraud Minister
“We all know that fraud devastates lives, and that money laundering is at the heart of organised crime, so it is essential that we take decisive action against this kind of economic crime and bring those responsible to justice..."
Source:
Disclaimer
This post does not represent legal or regulatory advise. Nor is it to be construed as such.
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