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Message: [QUOTE="Munyaradzi Mafaro, post: 80885, member: 636"] New rules kicked the scammers right in the teeth. The UK's company registry, Companies House, started making new directors verify their identities, and the number of new businesses registering immediately tanked. Weekly incorporations dropped about thirty percent after the law took effect in November. Graham Barrow, a financial crime expert, called the dip pretty dramatic and exactly what was intended. The goal is to stop fraud and money laundering by forcing all directors and major owners to confirm who they are, with criminal penalties for skipping it. Existing company officials will need to do the same over the next year. The sharp decline shows how much junk was likely flooding the system before. Specialist Anthony Asindi noted the fall hints at the previous volume of sham companies and directors. However, fraud is just evolving, not vanishing. Barrow points to a rise in paid proxy directors, people who sell their verified identities to front for hidden owners. An investigation last year found networks of these front people getting paid to shield the real controllers. Barrow also flagged a big loophole: address verification is not required, letting fake locations slip through. He gave examples from County Durham with dozens of directors listed at impossible house numbers. Another potential weak spot involves registered agents like lawyers and accountants, who can verify clients for the system. Barrow warned that oversight here is critical, as some agents are companies with their own unverified directors doing the checking. The register currently holds over five and a half million companies, with hundreds of thousands dissolving. While the government says this is a major cleanup step, experts agree that more fixes will be needed to catch up with savvy criminals. [/QUOTE]

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