New Identity Verification Requirements for UK Companies
In the realm of rising financial crime, both AML specialists and financial criminals have long identified Companies House as a target for fraud. To combat this, Companies House has announced new identity verification procedures. From Autumn 2025, these measures will apply to all existing and future companies registered with Companies House.
The Problem
For many years, fraudsters have been exploiting Companies House through various sophisticated methods to perpetrate financial crimes. These include creating fictitious companies with fake directors and addresses for money laundering purposes, providing false information about company shareholders to obscure true ownership and control and even committing identity theft. By using stolen identities to register companies, fraudsters can make it appear as though legitimate, ordinary citizens are involved in the running of a business, while in actuality, the company is being operated by financial criminals, for illicit activities.
Alternatively, financial criminals may use names that closely resemble those of well-known companies to deceive customers into dealing with their fraudulent company instead of the legitimate ones. For instance, they might use “Barcleys” instead of “Barclays” or “Santandar” instead of “Santander.” Such subtle manipulations have been exploited through Companies House for far too long.
The Incoming Changes
Starting Autumn 2025, Companies House will be implementing a new identity verification process under the Economic Crime and Corporate Transparency Act. These changes will ensure that individuals setting up, running, owning or controlling companies are exactly who they claim to be.
- From Autumn 2025, all new directors and People with Significant Control (PSCs) will be required to complete identity verification;
- Existing companies will have a 12-month transition period starting from Autumn 2025 for current directors and PSCs to verify their identities. In other words, directors and PSCs must complete identity verification by Autumn 2026; and
- Members of Limited Liability Partnerships (LLPs) and anyone acting on behalf of a company will also be required to verify their identities
Verification Methods
Individuals will be able to verify their identity directly with Companies House using GOV.UK One Login and identification documents such as passports.
Authorised Corporate Service Providers (ACSPs) will follow a slightly different process. Starting in Spring 2026, ACSPs such as solicitors, accountants and company formation agents will be able to conduct identity verification on behalf of companies. These checks must meet the same standards as direct verification.
Timeline
Autumn 2025 | Identity verification begins for all new directors and PSCs
Spring 2026 | Identity verification required for anyone filing information on behalf of a company
Autumn 2026 | Deadline for all pre-existing directors and PSCs (those exercising their functions before
Autumn 2025) to conduct identity verification
How does this affect you and your business?
For legitimate business owners, directors and PSCs, this will be an administrative formality, albeit an important one. You will need to verify your identity with Companies House to confirm that you are indeed who you claim to be on paper.
For fraudsters, the days of identity theft and shell companies seem numbered- or at the very least, executing such schemes in the UK will become significantly more challenging.
The purpose of these changes is to make it unviable for fraudsters to exploit Companies House and use fake companies to facilitate their illicit and financial crime activities.
How Complyport Can Help
These changes impact all UK businesses registered with Companies House, no matter the size or complexity.
If identity verification and due diligence is unfamiliar to you and your team, our team of experts are here to help! Sign up to our newsletter to stay informed on the impending changes, or get in touch today to discuss what these changes mean and how to prepare.
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