The UK's fight against economic crime has taken a significant step forward with the implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This landmark legislation...
The UK's fight against economic crime has taken a significant step forward with the implementation of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This landmark legislation introduces stricter regulations for company directors and Persons with Significant Control (PSCs), particularly around identity verification and anti-money laundering (AML) compliance. For company directors navigating these changes, partnering with an Authorised Corporate Service Provider (ACSP) like Fundsure can simplify compliance.
What Are the New Laws for Company Directors?
The ECCTA, which received Royal Assent on 26 October 2023, aims to enhance transparency, combat economic crime, and strengthen the reliability of data held by Companies House. Key points for directors include:
- Mandatory identity verification. All new and existing company directors and PSCs must verify their identity either directly with Companies House or through an ACSP. Existing companies have a transition period to comply.
- Director disqualification sanctions. The ECCTA introduces director disqualification sanctions. Individuals subject to these sanctions are prohibited from acting as a director or participating in the promotion, formation or management of a company, and violating them is a criminal offence.
- Increased transparency and accountability. The Act enhances Companies House's powers to verify identities, remove fraudulent entities and share data with law enforcement. Directors must ensure their information is accurate and up to date.
- ACSP involvement. Third-party providers offering company formation or identity verification services must register as ACSPs with Companies House and be supervised under the Money Laundering Regulations 2017.
- Impact on limited partnerships. Limited partnerships will need to file information through an ACSP and provide more detailed data to Companies House, particularly relevant for Scottish limited partnerships flagged for potential misuse.
Challenges for Company Directors
- Time and complexity. Verifying identities and ensuring AML compliance can be time-consuming, especially for directors managing multiple companies or complex structures.
- Risk of non-compliance. Failure to comply could lead to penalties, sanctions or criminal liability, including director disqualification.
- Increased scrutiny. With Companies House's enhanced powers, directors face greater accountability for the accuracy of their filings.
- Transition-period pressure. Existing directors must act within the transition period to verify their identities.
How Fundsure Can Help
As a registered ACSP, Fundsure is well-positioned to guide directors through these requirements while minimising disruption:
- Seamless identity verification, authorised by Companies House, using robust, compliant processes.
- Expert AML compliance support, including firm-wide risk assessments, customer due diligence, policies and MLRO support where required.
- Streamlined company formation and filing that meets the ECCTA's transparency requirements.
- Guidance on director disqualification sanctions and your obligations.
- Tailored support for limited partnerships and their additional filing requirements.
- Ongoing compliance monitoring to keep your records accurate and respond to Companies House queries.
Next Steps for Company Directors
- Verify your identity early, either directly with Companies House or through an ACSP like Fundsure.
- Review your AML policies where applicable, with a documented risk assessment and compliant procedures.
- Appoint an MLRO if your business is subject to MLR 2017.
- Partner with an ACSP to handle identity verification, filings and AML compliance.
The ECCTA and updated AML regulations mark a new era of transparency and accountability for UK company directors. Fundsure, as a registered ACSP, is your trusted partner in navigating these reforms. Contact us today to learn how we can help.