Figures from Companies House reveal that since January 2023, just 14 out of 444 fines levied against non-compliant firms have been paid, Financial Times reports.

The Register of Overseas Entities (ROE) was introduced in 2022 following Russia’s invasion of Ukraine, aiming to expose illicit wealth, particularly from oligarchs and kleptocrats, hidden within the UK property market. Companies holding UK property via offshore structures were required to declare their beneficial owners by the end of January 2023. Regulations allowing Companies House to impose penalties came into force in June 2023.

Despite over 30,000 entities complying with the register, critics argue the low collection rate undermines its effectiveness. Of the £22.99 million in fines issued, only £700,000 has been collected. Fines range from £10,000 to £50,000 per property, determined by council tax bands.

Transparency International UK highlighted that merely issuing penalties without collection fails to provide a strong deterrent, creating an “enforcement gap”. Labour MP Joe Powell, chair of the All-Party Parliamentary Group on Anti-Corruption and Responsible Tax, echoed these concerns, stating that without proper enforcement and the closure of loopholes, such as the use of trusts, the register risks “falling short of its purpose”.

Companies House stated it is working with partners to ensure compliance and improve the register’s quality. It warns that unpaid penalties may be pursued through the courts, potentially resulting in charges being placed on the offending entity’s property.