ECCTA Overview
What is the Economic Crime and Corporate Transparency Act?
The Economic Crime and Corporate Transparency Act (ECCTA) is the most significant reform of UK company law in a generation. Passed in 2023, it gives Companies House new powers to verify, query, and reject information, and it introduces strict new rules for anyone who files on behalf of companies.
The Act responds to years of criticism that the UK's corporate registration system was too easy to abuse. Criminals used fake directors, shell companies, and nominee arrangements to hide money laundering, fraud, and sanctions evasion. Companies House had no power to check whether filings were accurate, and there was little accountability for those submitting false information.
ECCTA changes that. It transforms Companies House from a passive registry into an active gatekeeper. It also extends responsibility to accountants, formation agents, and other corporate service providers who act on behalf of companies.
For most accountancy practices, the biggest impact is the introduction of the ACSP regime and the requirement to verify identities before filing.
Why ECCTA was introduced
The UK government introduced ECCTA to tackle economic crime and improve corporate transparency. High-profile cases—such as Russian oligarchs hiding assets in UK shell companies—highlighted weaknesses in the system. International bodies, including the Financial Action Task Force (FATF), criticized the UK for failing to prevent the misuse of its corporate structures.
ECCTA aims to close those gaps. By requiring identity verification, tightening rules on company formation, and giving Companies House enforcement powers, the Act makes it harder for criminals to abuse the UK's company register.
It also aligns the UK with stricter corporate transparency standards in other jurisdictions. The expectation is that legitimate businesses will find the new rules straightforward, while bad actors will find it much harder to operate undetected.
Key changes impacting accountants and formation agents
ECCTA introduces several changes that directly affect accountancy practices and company formation agents:
ACSP registration: From spring 2026, most firms that file on behalf of companies must register as Authorised Corporate Service Providers. This includes accountants who incorporate companies, file confirmation statements, or submit annual accounts for clients. Registration requires AML supervision, and you must declare that you meet fit and proper standards. ACSP registration is currently available voluntarily ahead of the mandatory deadline.
Identity verification: From 18 November 2025, before you tell Companies House about a new director, PSC, or other relevant individual, you must verify their identity using the Companies House identity verification standard. This applies to incorporations, appointments, and changes to company officers or PSCs. For existing directors and PSCs, there is a 12-month transition period starting on 18 November 2025, during which they must verify by their individual due dates, typically by late 2026. The verification must include document checks and biometric verification.
Enhanced filing obligations: Companies House can now query filings and request evidence. If you submit information that appears incorrect or inconsistent, you may be asked to justify it. Filings that fail checks can be rejected.
Increased powers for Companies House: The registrar can now annotate the register, remove false information, and investigate suspected fraud. ACSPs who repeatedly submit inaccurate or incomplete filings can have their registration suspended or removed.
Stricter penalties: Submitting false information or failing to comply with identity verification requirements can result in fines, prosecution, or removal from the ACSP register.
New identity verification rules
The identity verification rules are the most operationally challenging part of ECCTA for most accountants. You must verify the identity of directors, PSCs, and authorised agents before you file with Companies House.
The verification must meet a specific standard. You need to check a valid identity document (passport, driving licence, or other accepted ID), confirm the person's appearance through a biometric check (usually a selfie with liveness detection), and keep evidence of the check for at least seven years.
You cannot use informal checks. A video call or a scanned copy of a passport does not meet the standard. The process must include fraud detection, liveness checks, and document authentication.
If you use an external identity verification provider, you remain responsible for ensuring the check meets the required standard. You also need to document the check and make the evidence available to your AML supervisor or Companies House on request.
The rules apply every time you incorporate a company or file an appointment. If you act as a formation agent handling dozens of incorporations each month, you'll need a scalable process that doesn't rely on manual checks.
Timelines and deadlines
ECCTA became law in October 2023, and implementation has been phased. Identity verification began as a voluntary process from April 2025 and became compulsory from 18 November 2025 for new directors and PSCs. For existing directors and PSCs, there is a 12-month transition period starting on 18 November 2025, during which they must verify by their individual due dates, typically by late 2026. ACSP registration becomes mandatory in spring 2026 for firms that file on behalf of companies.
During the transition period, firms are strongly encouraged to register as ACSPs and begin implementing identity verification processes. From spring 2026, Companies House is expected to reject filings from third-party agents who are not registered as ACSPs and may take enforcement action against firms that fail to comply.
The identity verification rules apply to new incorporations and appointments made from 18 November 2025. For existing directors and PSCs, there is a 12-month transition period starting on 18 November 2025, during which they must verify by their individual due dates, typically by late 2026.
Enforcement will follow the transition period. Firms that register early and implement compliant identity verification processes are better positioned to avoid scrutiny and delays when mandatory compliance begins.
Risks for firms that don't comply
After the transition period ends, firms that fail to register as ACSPs or don't meet identity verification requirements face several risks:
Rejected filings: From spring 2026, Companies House can refuse to accept filings from unregistered agents. From 18 November 2025, filings for new directors and PSCs without proper identity verification can be rejected.
Enforcement action: After the transition period, your AML supervisor can investigate if your identity verification processes are inadequate. Companies House can also refer serious cases to enforcement agencies.
Reputational damage: If your ACSP registration is suspended or removed, clients will lose confidence. Being publicly named as non-compliant can harm your firm's reputation.
Client delays: If you can't file on behalf of clients because you're unregistered or haven't verified identities, you'll cause delays that damage client relationships and potentially breach service agreements.
Financial penalties: Fines and legal costs add up quickly. In serious cases, individuals can face prosecution.
How ACSPverify helps firms stay prepared
ACSPverify simplifies identity verification for accountants and ACSPs. We handle the technical requirements so you can focus on serving clients.
You send a secure link to directors or PSCs. They complete the check on their phone or computer. We verify their identity document, run biometric checks, and detect fraud. You get a summary of the results, aligned to the Companies House standard.
We don't require subscriptions or minimum commitments. You pay only for the checks you run. You keep control of your own evidence and retention policies, and we act as your data processor—not the data controller.
ACSPverify is built specifically for the ACSP identity verification standard. We're not a generic KYC tool. We're designed for UK accountants who need to comply with ECCTA without overhauling their entire compliance stack.