Compliance Briefing — October 26, 2023
The UK Economic Crime and Corporate Transparency Act received Royal Assent on 26 October 2023, delivering Companies House identity verification, expanded registrar powers, and new corporate criminal offences.
Executive briefing: The Economic Crime and Corporate Transparency Act 2023 became law on 26 October 2023. Companies must prepare for mandatory identity verification for directors and PSCs, enhanced Companies House data checks, and new ‘failure to prevent fraud’ offences for large organisations.
Key compliance checkpoints
- Identity verification. Implement processes to verify directors, persons with significant control, and agents using authorised providers or Companies House systems.
- Data accuracy duties. Strengthen controls to submit accurate filings, respond to registrar queries, and maintain up-to-date registered office details.
- Failure to prevent fraud. Assess fraud risk and update reasonable procedures to defend against corporate criminal liability.
Operational priorities
- Governance updates. Review board charters and compliance policies to reflect Companies House reforms and fraud-prevention obligations.
- System readiness. Integrate identity verification steps into company secretarial software and onboarding workflows.
- Training. Educate finance, legal, and operations teams on new offences, registrar powers, and investigative cooperation duties.
Enablement moves
- Engage identity service providers or build API integrations ahead of verification go-live.
- Conduct fraud risk assessments to document reasonable procedures in line with Ministry of Justice guidance when issued.
- Develop communication plans for stakeholders on filing changes and enforcement timelines.
Sources
Zeph Tech supports UK corporates with identity verification workflows, Companies House compliance, and fraud prevention programme enhancements.