Katie Bewick and Mike Barrington write for Solicitors Journal on how the Economic Crime and Corporate Transparency Act 2023 is reshaping UK business practices with new transparency rules
min readThe Economic Crime and Corporate Transparency Act 2023 (ECCTA) represents a major legislative effort to enhance the prevention of financial crime in the UK by increasing transparency and accountability in corporate ownership and management.
Key changes introduced by the ECCTA include mandatory identity verification for directors and individuals with significant control, electronic-only company account filings, and new criminal offences for failing to prevent fraud in large organisations.
The identity verification (IDV) requirement, a cornerstone of the ECCTA, became available voluntarily on 8 April 2025 and is expected to become mandatory in the autumn. This requirement extends beyond directors to include persons with significant control and those responsible for filings with the Registrar. Advisors regulated for money laundering purposes must register as authorised corporate service providers to continue making filings.
Failure to comply with mandatory IDV can result in various sanctions, including civil penalties, criminal proceedings, operational restrictions, director disqualification, and reputational damage. Companies must maintain thorough internal records, establish compliance processes, and conduct training to avoid these penalties.
In an article for Solicitors Journal, Senior Associates, Katie Bewick (Dispute Resolution) and Mike Barrington (Corporate) explore how tougher transparency rules, mandatory ID checks, and new penalties are reshaping UK corporate ownership and compliance.
Read the full piece in Solicitors Journal here.
