By PAUL O’DONOGHUE, Senior Correspondent
THE UK Companies House has begun phasing in mandatory identity checks for company directors and people with significant control (PSCs) from today, November 18.
The move aims to improve the reliability of the UK’s corporate register and combat economic crime.
From today, anyone who becomes a director or PSC for a UK company must verify their identity with Companies House.
UK Security Minister Dan Jarvis said: “Criminals are using fake companies as fronts for serious organised crime.
“These new measures will ensure fraudulent directors are rooted out and banned, as we continue to pursue those who use dirty money for criminal gain.”
The agency said the new requirement will give businesses more confidence about who sets up and controls companies. It said the checks will also make it harder for people to use fake or stolen identities.
Companies House will roll out the rules over 12 months for existing directors and PSCs. More than 1.5 million people have already completed verification since a voluntary service opened in April.
Individuals can verify their identity through GOV.UK One Login or via an Authorised Corporate Service Provider. Verification through One Login is free. Directors can complete the checks using passports, driving licences or security questions.
Companies House ID verification
Existing directors must submit these statements alongside their confirmation statements. Companies House is contacting firms with their deadlines. Directors and PSCs can check the register to view due dates for their roles
Not completing identity verification on time is an offence. Potential penalties include fines, referrals to the Insolvency Service and court prosecution.
Companies House chief executive Andy King said: “We’re determined to help create an environment where honest businesses can thrive. We also want to prevent people starting and running companies for criminal purposes.”
Small Business Minister Blair McDougall said mandatory identity verification “marks a turning point in protecting honest businesses and hard-working consumers from fraud”.
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
