The Economic Crime and Corporate Transparency Act 2023 introduces comprehensive reforms to Companies House, aimed at enhancing transparency, preventing economic crime, and improving the reliability of corporate data. Key measures include mandatory identity verification and new statutory duties for directors and members. These changes represent a significant step forward in the UK’s efforts to combat economic crime and ensure the integrity of its corporate framework.

The Act introduces mandatory identity verification for directors, PSCs, and those making any filings at Companies House and is a critical measure to prevent the misuse of corporate entities for criminal activity. From this autumn it will become compulsory for new directors and PSCs, to become a verified individual in order to engage with Companies House.

By allowing individuals to protect sensitive information, the Act aims to reduce the risk of fraud and safeguard individuals from potential harm. This legislation tries to balance the need for transparency with the protection of personal data by allowing people to suppress certain personal details from public disclosure thereby addressing concerns about privacy and security

The Act imposes new obligations on directors and members to ensure the accuracy of their information. Changes to the information required on an annual confirmation statement further enhances transparency by requiring more detailed disclosures than previously. Non-compliance with these duties may result in criminal penalties, underscoring the importance of being prepared for the new requirements.

If you require support in preparing for these changes which have been introduced and which will become compulsory by the end of the year, please contact Nicolle Marchant by email or on 01494 893 514 for assistance.