What is the ECCTA, and what do the ID Verification rules mean for accountants?

• What is ECCTA
• Understanding the ECCTA
• What are the requirements for ID Verification?
• What do you need to do to stay compliant with ECCTA?
• What happens if my client does not comply with the act?
• ID Verification is a new revenue opportunity for accountants
• How Wolters Kluwer can help

From 18th November 2025, confirmation statements must have the director, or PSCs’ personal code on—a code which is generated after you’ve verified the clients’ identity.  

To accountants, this may sound like just another regulation you need to keep up with, however, it’s actually an opportunity to set up a new revenue stream through an added service offering to clients.  

In this blog, we’ll look at the regulation itself, what you need to do as an Authorised Corporate Service Provider (ACSP), and how you can turn this new rule into a valuable revenue-generating opportunity for your practice.  

What is ECCTA

As explained by Companies House, “The Economic Crime and Corporate Transparency Act (2023) will reform the role of Companies House and improve transparency over UK companies and other legal entities to strengthen our business environment, support our national security and disrupt economic crime, while delivering a more reliable companies register to underpin business activity. This legislation brings Companies House and our legal framework into line with modern day challenges.”

In essence, it aims to combat fraud and crime through stricter measures.  

This blog focuses on the ID Verification element of the ECCTA—since it’s a multifaceted legislation—which will require new compliance checks from accountants, from 18th November 2025.

Understanding the ECCTA

Companies House say that, “The Act gives Companies House the power to play a more significant role in disrupting economic crime and supporting economic growth. Over time, the measures will lead to improved transparency and more accurate and trusted information on our registers.”

As a result, there will be new responsibilities for:

• All new and existing company directors.
• People with significant control of a company (PSCs).
• Anyone who files information on behalf of a company.

One of these responsibilities is for individuals who register and control companies, or file with the Registrar, to prove they are who they say they are by verifying their identity.  

This is done through ‘ID Verification’ (IDV) checks, which aim to make it harder to register fictitious directors or beneficial owners, stopping the majority of fraudulent appointments from reaching the Register.

What are the requirements for ID Verification?

From 18 November 2025 these ID Verification checks will become a compliance requirement.  

For accountants, this presents a substantial opportunity for a new revenue stream, but first let's look at the requirements for ID Verification.  

There’ll be two routes to identity verification:

• Direct verification via Companies House.
• An indirect route through an ACSP.

Accountants can act as the ACSP for their clients who don’t want to manage the process themselves.

What do you need to keep my clients compliant?

The ACSP (the accountant) must demonstrate that they have verified their clients to the required standard which will be set out in secondary legislation and guidance. What does this look like for you?

1. Register with Companies House to become an Authorised Corporate Service Provider (ACSP).
2. Ensure you’re registered with a UK Anti-Money Laundering (AML) supervisory body (if not already).
3. Run an IDV check on your client, using software such as CCH iFirm AML IDV Checks to speed up the process for both you and your client.
4. You can then use GOV.UK One Login to verify your clients’ identity using their official documents—proving you carried out the IDV checks.
5. When you have successfully verified, your client will get a unique identifier known as a Companies House personal code—this is used for when they filed a confirmation statement, are appointed as a director, and if they become a person with significant control.

What happens if my client does not comply with the act?

It’s important that your clients comply, otherwise they risk a range of penalties. Plus, it gives you an opportunity to explain the risks to them and instill trust in leaving you, as their accountant, to carry out the checks.

If they don’t comply, they may face:

• Criminal proceedings, which could result in a level 5 fine.
• Civil penalties issued by the Registrar of Companies.
• Incorporations/registration of a new company being rejected.
• Being unable to file statutory filings.
• The public register being annotated to show the individual’s status as ‘unverified’.

ID Verification presents a new revenue opportunity for accountants

Learning about the new regulations under the ECCTA may seem overwhelming, and like just another box-ticking exercise for you to keep clients up-to-date with. However, it’s actually a great opportunity to create a new revenue stream for your practice.  

Clients may not feel comfortable going through the process themselves, therefore you can strengthen your relationship by keeping them informed and offering to handle the process for them.

By acting as an ACSP for your customers, you can let them sit back and relax while you handle their identity verification process. Your practice can package the service up, providing value-add to both your clients and your business.

How Wolters Kluwer can help

As your trusted software partner, we’ve developed a solution, enabling you to offer IDV checks as a service to clients, with ease:

Meet CCH iFirm AML IDV Checks: A streamlined, targeted solution, built specifically for ECCTA compliance with Companies House, reducing friction and false negatives.

Learn more, or get in touch.