The Law Society has alerted conveyancers to the impending launch of the Register of Overseas Entities (ROE) which will introduce new responsibilities and risks into some property transactions.
The government recently announced that the new register, created under the Economic Crime (Transparency and Enforcement) Act 2022, will come into force on 1st August 2022.
The Society has issued guidance on what members should consider when acting in transactions involving overseas entities, including the risks associated with verification.
Law Society of England and Wales president I. Stephanie Boyce said:
“We have produced an interim note to alert those acting in property transactions involving overseas entities about the changes that are being introduced at pace.
Failure to comply with registration in the ROE is potentially a criminal offence, so it is important that members are aware of the new register and their responsibilities.”
I. Boyce went on to explain where conveyancers could fall foul of the new regulations:
“Parts of the Companies House registration process could be complex, including complying with third-party verification requirements.
Getting the information necessary to obtain registration in the ROE may prevent or delay application being made to HM Land Registry with all the risks that this would entail.
The verification requirements for the ROE are not the same as the procedures in place for complying with anti-money laundering legislation, providing ID for lenders or for Land Registry.
Solicitors are advised to exercise caution when assessing whether they are in a position to provide such verification.”
