Economic Crime & Corporate Transparency Act 2023
In 2023, the UK introduced the Economic Crime and Corporate Transparency Act (ECCTA) to intensify the fight against financial crime and lift standards of business transparency. At its core are mandatory identity verification and enhanced oversight by Companies House. For businesses and Authorised Corporate Service Providers (ACSPs), the direction is clear: be proactive, take responsibility, and help build trust in the business environment.
The ECCTA offers a practical framework for staying compliant, especially for those with anti-money laundering (AML) obligations. As rules tighten, informed, prepared companies—and their ACSP partners—will be better placed to meet expectations and operate confidently.
What is the Economic Crime and Corporate Transparency Act 2023?
TThe ECCTA introduces reforms to reduce financial crime and increase visibility into who controls and runs UK companies. A central change is mandatory identity verification for individuals involved in company formation or management. This helps guard against fake identities, reduce fraud risk, and improve confidence in corporate records.
Companies House now has greater powers and resources to scrutinise filings, challenge suspicious activity, and ensure the public register is accurate and up to date. The act also creates a new corporate offence of failing to prevent fraud, making organisations liable where they do not take reasonable steps to stop fraudulent activity within their operations. In parallel, law enforcement gains stronger tools to tackle digital economic crime, including powers to seize cryptoassets linked to offences such as ransomware. Together, these measures aim to deter wrongdoing and modernise the UK’s corporate framework.
Responsibilities of Authorised Corporate Service Providers (ACSPs)
ACSPs—such as company formation agents, solicitors, accountants, and chartered governance professionals—sit at the heart of ECCTA implementation. Their role focuses on robust identity verification and the integrity of Companies House records. From 18 March 2025, any organisation conducting identity checks for actions involving Companies House must be registered as an ACSP, confirming regulatory oversight, AML compliance, and the use of secure, reliable verification systems.
Core duties include:
Verifying the identities of individuals involved in Companies House filings and appointments
Maintaining accurate registration records linked to filings made through Companies House
Being registered as an ACSP from 18 March 2025, if conducting identity checks related to Companies House actions
From 8 April 2025, notifying Companies House directly when an individual’s identity has been verified
Keeping information secure and performing these tasks precisely, reflecting their trusted role from company formation onward
From 8 April 2025, an ACSP’s ability to confirm verified identities directly to Companies House will help ensure only accurate, validated data enters the public register. These changes reinforce ACSPs’ central responsibility for data integrity and security throughout a company’s lifecycle.
Impact on Companies House Identity Verification
From April 2025, identity verification will move to a more structured, ACSP-led model. Individuals involved in forming or managing companies—such as directors, members, and authorised filers—will submit identification documents to an ACSP, who will verify authenticity and confirm that each person is who they claim to be.
Once checks are complete, the ACSP can notify Companies House that the identity has been verified. This should strengthen security, consistency, and efficiency, but it also raises the bar for professional competence. Businesses must ensure their advisers are properly registered and capable of conducting rigorous checks; gaps may result in errors or non-compliance.
Enhancing Corporate Transparency and Combating Economic Crime
Beyond verification, the ECCTA emphasises prevention. The new failure to prevent fraud offence places responsibility on companies to identify, mitigate, and respond to fraud risks. That means reviewing internal controls, clarifying reporting lines, training staff to spot red flags, and ensuring escalation procedures are understood and followed.
Law enforcement also benefits from expanded investigative powers, notably the ability to seize cryptoassets tied to criminal activity. With more business conducted digitally, these tools help authorities keep pace with evolving threats. The aim is to shift from reactive fixes to proactive safeguards—strengthening confidence among customers, partners, and regulators. Implementing these measures takes planning, clear processes, and often specialist guidance—especially as timetables and practical details continue to evolve.
Protecting your business from economic crime and staying compliant can seem daunting, but you don’t have to go it alone. At ABMV, our expertise as an Authorised Corporate Service Provider means we can guide you through identity verification and wider compliance requirements while supporting robust company accounting. Talk to us today to strengthen your governance, streamline filings, and stay ahead on company accounting.