• Legislation Background: The Register of Overseas Entities was created to address concerns about illicit wealth hidden in the UK property market. Individuals owning British property through offshore vehicles were required to register these entities and publicly disclose their ownership at Companies House by the end of January 2023.
• Fines: Failure to register could result in fines of up to £2,500 per day, along with penalties ranging from £10,000 to £50,000 per property.
• Enforcement Actions: The first financial penalties, amounting to 123 cases, have been issued to entities for failing to comply with offshore transparency legislation. The penalties represent the first enforcement actions taken by the government since the legislation was introduced in 2022.
• Timeline: The first fine was reportedly issued on July 1, six months after the compliance deadline and 11 months after the register was implemented in August 2022.
• Penalty Notices: Companies House has sent 4,772 penalty warning notices to 3,103 entities that have yet to comply. Some of these entities may no longer exist.
• Challenge of Enforcement: The challenge now is to ensure that the fines are paid. Ben Cowdock from Transparency International emphasized the importance of effective enforcement.
• Missing Information: Research by the London School of Economics and Warwick University found that essential information about beneficial owners was missing or publicly inaccessible for 71% of properties on the register.

It’s important to refer to the original article on the Financial Times website for the most up-to-date and accurate information.