Mandatory ID verification for directors introduced to tackle fraud

Mandatory identity verification for company directors and people with significant control (PSCs) has come into force today, in a move designed to improve corporate transparency and reduce the risks posed to employees, customers and legitimate businesses.

The changes, introduced by Companies House and phased in over the next 12 months, are intended to ensure directors are who they claim to be and to curb the use of fake or stolen identities in company registrations.

From 18th November, anyone becoming a director or PSC must verify their identity through Companies House, either via GOV.UK One Login or an Authorised Corporate Service Provider.

More than 1.5 million individuals have already used the voluntary service since April.

Once verified, directors receive a personal code confirming their identity, which must be submitted for each company role they hold.

The reforms are expected to improve safety and stability for employees by helping expose fraudulent or disqualified directors, strengthening governance and making it harder for criminals to establish companies that could put staff and stakeholders at risk.

Verification will also help Companies House take enforcement action when wrongdoing occurs.

Non-compliance is an offence and may result in financial penalties, referrals to the Insolvency Service or prosecution.