The latest measures under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) will require new directors will need to verify their identity through either a GOV.UK One Login, or through an Authorised Corporate Service Provider (ACSP), to incorporate a company or be appointed to an existing company.
Existing directors will need to confirm they have verified their identity at the same time as they file their next annual confirmation statement.
Existing PSCs will need to verify their identity in line with an appointed day within 12 months of the commencement of mandatory identity verification.
The first measures under the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) came into force last year after an investigation revealed hundreds of fake firms have been set up using restaurant names.
The BBC reported in February 2024 that several high-profile restauranteurs including Heston Blumenthal and Yotam Ottolenghi had been targeted as part of an identity theft scam that saw fraudsters register fake business in order to apply for bank accounts and loans.
Scammers would pay to register a business online with Companies House, after which they could ‘clone’ restaurants with similar names to a real business.
They were then able to steal overdraft money from bank accounts set up in the name of the fake company they have cloned, and order high-value goods from suppliers keen to fulfil lucrative orders from a new, high-profile client.
In Blumenthal’s case, a company was registered with the name ‘Dinner by Heston Blumenthall’ with an extra ‘l’.
At the time, The Fat Duck chef patron called for greater urgency in tackling fraud on Companies House.
“Identity verification will play a key role in improving the quality and reliability of our data and tackling misuse of the companies register,” says Louise Smyth CBE, Companies House CEO, on the new measures.
“To support business and help people verify their identities, Companies House is contacting all companies with advice and guidance.
“This is part of a coordinated effort to help companies to comply.
“We encourage people to verify as early as possible.”