The Economic Crime and Corporate Transparency Act 2023 is a major legislative step in the UK government’s efforts to fight financial crime and corporate abuse. It introduces new responsibilities for company directors, shareholders, and formation agents - with tougher rules, stricter filing requirements, and mandatory ID verification on the way.
If you run a company in the UK, this law will affect you. Here's what you need to know.
Why Was This Law Introduced?
The UK has long been a target for financial criminals who exploit limited companies to:
Launder money
Evade taxes
Conceal illicit activities
Use fake directors or false identities
This new legislation aims to increase transparency and accountability by strengthening Companies House and introducing legally enforceable identity checks.
Key Changes in the Economic Crime and Corporate Transparency Act
1. More Powers for Companies House
Companies House will now take on a regulatory role rather than simply a registry. They will be empowered to:
Query suspicious filings
Request supporting evidence
Reject false or misleading information
Share data with enforcement agencies
2. Mandatory Identity Verification (Coming in 2025)
From Autumn 2025, the following individuals must verify their identity before filing:
Company directors
Persons with Significant Control (PSCs)
Company formation agents
Verification will be required before any of the following actions can take place:
Company formation
Director or PSC appointments
Filing confirmation statements or changes
This must be done either directly through Companies House or via an authorised agent like our team.
3. Stricter Filing Obligations
All UK companies must ensure that details such as:
Registered office
Shareholders
Directors and PSCs
...are accurate, up to date, and consistent across filings. Expect more scrutiny, rejections, and potential penalties for errors or omissions.
4. Stronger Enforcement and Penalties
Failure to comply could result in:
Fines
Criminal charges (in serious cases)
Filing rejections that could delay business operations
What Does This Mean for Your Business?
Even small, one-director companies must comply. Key action points include:
Prepare for ID verification requirements now
Review and update your company’s registered details
Expect increased oversight from Companies House
Work with a trusted intermediary to avoid mistakes or delays
How Our CoSec Team Can Help
Navigating these changes alone could be time-consuming and risky. Our Company Secretarial specialists are ready to:
Complete ID verification for directors and PSCs
Keep your company records compliant and up to date
Submit filings on your behalf
Help you prepare for Autumn 2025 and beyond
We’ll ensure your company meets all new legal obligations - while you stay focused on running your business.
Final Thought: Compliance Is No Longer Optional
The Act marks a fundamental shift in how UK companies are regulated. It’s about building trust, deterring fraud, and ensuring UK companies are run by real, verified people. Failing to prepare now could lead to costly disruptions later.
Get Support Today
Need help navigating the Economic Crime and Corporate Transparency Act?
Speak to our CoSec team ✅
Get your company ready for 2025 ✅
Avoid penalties and missed deadlines ✅
Contact us today and we’ll take care of the compliance - so you don’t have to.
Frequently Asked Questions (FAQs)
What is the Economic Crime and Corporate Transparency Act?
A UK law designed to prevent fraud and money laundering by increasing corporate transparency. It gives Companies House more authority and introduces mandatory identity verification for directors, PSCs, and agents.
When will identity verification become mandatory?
From Autumn 2025, anyone registering a company or making certain filings must verify their identity.
Does the law apply to small companies?
Yes. All UK companies, regardless of size, are required to comply with the new rules.
What are the risks of non-compliance?
You could face fines, rejected filings, or in serious cases, criminal charges.
How can I stay compliant?
Work with an authorised intermediary (like us) to ensure timely ID verification, record updates, and accurate filings.
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