- The Insolvency Service's new investigation and
enforcement strategy will see the agency play a leading
role in tackling economic crime and improving corporate
standards
- Over the next five years, the agency will prosecute a wider
range of offences, increase enforcement against companies acting
against the public interest, and recover proceeds of crime
- The Insolvency Service will play a leading role helping the
UK remain a safe and fair place to do business for all
The Insolvency Service has announced ambitious and
transformational plans to play a more prominent role in the fight
against economic crime and be recognised as the UK's leading
authority in enforcing corporate and insolvency standards.
Published today (Wednesday 16 July), the strategy commits the
agency to broadening its remit, taking robust action against
criminals who defraud businesses and taxpayers, and using
artificial intelligence and advanced analytics to combat
sophisticated financial wrongdoing.
The agency will also step up efforts to tackle money laundering
through hiring experts in cryptoassets seizing more criminal
proceeds of crime, and continuing to expand its intelligence
functions. These teams were crucial in recent progress tackling
networks of overseas criminals using shell companies registered
in the UK.
Specialist investigators will continue to investigate COVID-19
Bounce Back Loan abuse, with the government announcing earlier
this year that viable existing casework would be transferred to
the Insolvency Service from the National Investigation Service
(NATIS).
In 2024-25, the Insolvency Service secured 77 criminal
convictions, over 1,000 director disqualifications, and more than
£4 million in compensation. Forty-one companies were also
wound-up in the public interest following investigations by the
agency.
The economic benefits of the agency's work in disqualifying
company directors and shutting down rogue companies was
calculated at in excess £50 million for this period.
Matt Ray, Director of Economic Crime Implementation at the
Insolvency Service, said:
Fraud is now the most common crime affecting businesses and
individuals across the UK. Meanwhile criminal and corrupt actors
continue to use UK corporate structures at huge scale to obscure
their activities and launder the proceeds.
Alongside our ongoing role upholding the UK's insolvency
framework we will adopt a much more central role in the fight
against economic crime and work with Companies House and other
partners to tackle the mass misuse of our corporate framework –
helping us deliver economic confidence.
Over the course of the strategy, our investigators will protect
more consumers than ever before from rogue companies, target
directors who fail to meet the high standards of behaviour we
expect from them and lead the fight against fraudsters who have
exploited government schemes designed to help small businesses.
By acting against those who are unfit to run companies, we are
reducing the harm caused to legitimate businesses and creditors
and creating a prosperous environment that supports economic
growth.
Martin Swain, Director of Intelligence and Law Enforcement
Engagement at Companies House, said:
Collaboration with key partners such as the Insolvency Service,
in helping us improve compliance and prevent misuse of the
Companies House register, is central to our enforcement approach.
We already work closely with these partners in tackling misuse
and – as we are now demonstrating – delivering real-world impacts
in the fight against economic crime.
I'm delighted that moving forward these links will be
strengthened further.
Further information
The enforcement strategy has three core objectives:
- Enforcement of the UK's insolvency framework
- Enforcement of the Companies Act 1985 and associated
legislation
- Tackling economic crime facilitated through companies
The Economic Crime and Corporate Transparency Act 2023 and its
subsequent regulations created more than 100 new offences under
the Companies Act and has provided funding for the Insolvency
Service to play a more prominent role in corporate enforcement.
This will be supported by proactive intelligence gathering to
keep pace with those who abuse the insolvency framework,
manipulate victims, and take advantage of the corporate
landscape.
The strategy will also see the Insolvency Service deepen its
partnership with other agencies including the National Crime
Agency and HMRC as well as working even more closely with
Companies House to enforce corporate standards.
The Insolvency Service's core role in protecting the insolvency
framework and investigating national interest cases remains
undiminished.
