Why identity verification matters for business 

The UK’s Economic Crime and Corporate Transparency Act 2023 (ECCTA) marks a significant shift in corporate governance. From 18 November 2025, identity verification (IDV) will become mandatory for all individual company directors and persons with significant control (PSCs), signalling a firm stance against corporate misuse.

The ECCTA is designed to enhance transparency and mitigate the risk of corporate structures being exploited for illicit purposes. Under the new rules, directors of UK companies and overseas entities with UK establishments must verify their identity prior to appointment.

Existing directors must complete IDV before submitting their first confirmation statement following the enforcement date. PSCs must also comply, with PSCs who are individuals subject to the new rules from the enforcement date. PSCs who are legal entities will have to designate an officer to undertake verification from a later date, yet to be confirmed.

The IDV process is facilitated via two channels: Companies House offers a streamlined, no-cost service for individuals with biometric passports, while authorised corporate services providers (ACSPs) accommodate broader documentation requirements. Upon successful verification, a personal code is issued, and IDV status will be publicly displayed on the Companies House register.

Non-compliance constitutes a criminal offence. Penalties include fines and potential disqualification. Although unverified directors retain legal authority to bind the company, such practices may erode stakeholder confidence and lead to reputational risk.

The ECCTA signals a decisive shift towards greater accountability and integrity

To ensure readiness, organisations should proactively inform directors of their obligations, identify those requiring ACSP support, and encourage early verification. Internal procedures – particularly within HR and company secretarial functions – should be updated accordingly. PSCs could also be notified although companies are not responsible for their compliance with the new rules.

The ECCTA signals a decisive shift towards greater accountability and integrity in corporate operations. Businesses that act promptly will ensure compliance and demonstrate leadership in upholding the principles of transparency and ethical governance.