The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is one of the most significant corporate law reforms in recent years. It was introduced to strengthen the UK’s defences against fraud, money laundering, and other economic crimes, which have often been enabled by opaque company structures and weak governance.
Until now, Companies House had very limited powers to verify or challenge the information placed on the public register. This created opportunities for misuse of the UK corporate structure process.
ECCTA responds to long-standing calls for reform by improving transparency, giving Companies House stronger enforcement powers, and creating new corporate liability offences to hold businesses accountable for preventing economic crime.
What’s Changing from 18 November 2025?
- Mandatory Identity Verification
- Directors:
- New directors must verify their identity before appointment or incorporation.
- Existing directors must confirm their verification at the time of their next confirmation statement, with a 12-month transition period.
- Acting as an unverified director – or allowing one to act – will be a criminal offence, punishable by a fine.
- Persons with Significant Control (PSCs):
- New PSCs must verify their identity within 14 days of registration.
- Existing PSCs who are also directors must submit their personal code within 14 days of the company’s first confirmation statement after 18 November 2025.
- PSCs who are not directors must verify during the first 14 days of their birth month following commencement (e.g. if the register records March as their month of birth, their verification window opens on 1 March 2026).
- Failure to verify carries personal criminal liability.
- Removal of Statutory Registers
- Companies will no longer need to maintain their own internal registers of directors, secretaries, PSCs, or residential addresses.
- Instead, the information must be filed and kept up to date at Companies House.
- The first confirmation statement filed after commencement must also include a full shareholder list (a one-off requirement).
- The requirement to disclose a director’s business occupation on registration will also be removed.
Preparing Your Business
Here are some practical steps you can take now to ensure compliance with the new rules:
- Map your ownership and control structure – identify all PSCs, beneficial owners, nominees, and any overseas entities or trusts.
- Plan ahead – align confirmation statements with verification deadlines and encourage early identity verification (available since April 2025) to avoid last minute delays.
- Check PSC dates of birth – to identify the correct 14-day verification windows.
- Prepare for register changes – ensure your Companies House filings are accurate and complete, including the shareholder list.
- Train key staff – particularly those in finance, legal, compliance, or company secretarial roles, so they understand the new requirements.
- Strengthen internal compliance – review fraud prevention procedures, whistleblowing arrangements, recordkeeping, and inter-departmental communication.
What This Means for Business Owners
ECCTA marks a step up in regulatory expectations, bringing:
- Greater visibility and accountability over who owns and controls companies.
- Tougher penalties for incomplete, misleading, or false information.
- More interaction with compliance and governance processes than before.
Not sure what ECCTA means for your business?
Understanding and implementing ECCTA can feel daunting, but early preparation will minimise disruption. I advise business owners, directors, and in-house teams on practical steps to build confidence and comply with the new rules.
Contact me at Jayne.croft@glenvillewalker.com if you would like to discuss more.