Are you ready for Companies House verification changes?

Under the Economic Crime and Corporate Transparency Act 2023, Companies House must verify the identity of anyone submitting information to the public register, including those acting on behalf of a company.

Changes to identity verification requirements for company directors, and individuals with significant control, came into effect from April 8th, on a voluntary basis. Mandatory ID verification for new appointments and incorporations, and a 12-month transition period for existing directors to complete ID verification, begins this autumn.

The Institute of Chartered Accountants in England and Wales (ICAEW) has compiled some useful information to help businesses comply with the new regulations. All third-party providers must register as an Authorised Corporate Service Provider (ACSP) before they can submit information and conduct identity verification checks on their clients. An ACSP is a business subject to money laundering regulations, such as professional service providers including accountants and solicitors and company service providers such as company formation agents.

Senior individuals, such as directors, will need to complete a registration process to establish their business as an ACSP. Applicants will also need to provide business information, which must be kept updated once registered. Sole traders must supply additional personal information.

To register as an ACSP, businesses must meet specific eligibility criteria such as: Sole traders can register as authorised agents, applicants for business registrations must hold a senior role and businesses must be registered with a UK anti-money laundering (AML) supervisory body.

Applicants must verify their identity before using the Companies House online service to register. If identity verification is not completed before application, the
system will prompt applicants to do so. After they have successfully registered, the ACSP will receive a new digital account and a unique identity number. This will allow them to file information and conduct identity verification checks for their clients and enable Companies House to confirm that the information comes from an authorised source.

The person registering the ACSP will be able to add other staff members to the ACSP account once it is approved. Although they will not need to complete identity verification, they will be permitted to access services on behalf of the authorised agent.

Sysum Howard Duggan are keen to ensure that all their clients are compliant with the new regulations. If you would like to join them, call 01905 622202.