Transforming Corporate Transparency: Latest Progress On Implementation Of The Economic Crime And Corporate Transparency Act 2023

A phased transformation approach 

The implementation of ECCTA follows a timeline designed to balance the need for reform with practical considerations.  The government has a structured roll out plan across multiple phases, with full implementation expected by 2027, reflecting the scale of transformation required, involving approximately 50 statutory instruments. 

Enhanced powers and active enforcement 

The ECCTA significantly strengthens Companies House’s enforcement role by: 

• Having more power to reject, query, or remove inaccurate information, and proactively share suspicious filings with law enforcement. 
• The introduction of the new Failure to Prevent Fraud corporate offence for large companies. 

Companies House has begun exercising these powers by prioritising the removal of incorrect or fraudulent information stored on the Register of Companies. These powers include the ability to query filings that appear suspicious, request additional verification information, and refuse to accept documents that fail to meet the new standards.  

Identity verification: a critical milestone

One of the most significant changes involves mandatory identity verification for directors and Persons with Significant Control (PSCs).

From 18 November 2025, all new directors and PSCs will have to complete identity verification upon appointment, with existing directors and PSCs required to verify during their confirmation statement filing over a 12-month transition. Over 300,000 individuals have verified voluntarily since April 2025, with over six million still to comply by 18 November 2026.

Publications tracking progress

The first progress report, released on 24 May 2024 (Progress report on the implementation and operation of Parts 1 to 3 of the Economic Crime and Corporate Transparency Act 2023) laid out initial implementation progress. The second report, published on 16 June 2025 (Second progress report on the implementation and operation of Parts 1 to 3 of Economic Crime and Corporate Transparency Act 2023) covers progress on Parts 1 – 3 of the ECCTA, including Companies House reforms, limited partnerships and enforcement capabilities. Further reports will follow annually until 2030.

Highlights from the second report include the following developments in implementation of ECCTA:

• Amending the fee structure to fund the expansion and enhancement of enforcement and intelligence capabilities at Companies House and the Insolvency Service.
• Bringing into force new financial penalties for breaches of offences in the Companies Act 2006, including new offences inserted into that Act by the ECCTA.
• Introducing the registration of Authorised Corporate Service Providers who can verify identities of directors and People with Significant Control (PSCs) and file information on behalf of companies.
• Enabling the rollout of the new identity verification requirements to begin in 2025
• Allowing individuals to protect their residential address where it appears on the public register in more cases than was previously possible, balancing transparency and individual protection.

The ECCTA signals a significant shift in UK corporate governance, by bolstering identity verification, enforcement powers, a corporate liability framework, it aspires to deter misuse of the UK’s corporate environment for illegal activity.