Three directors have been fined in first court action for identity verification offences

In rules brought in under the Economic Crime and Corporate Transparency Act 2023, directors are required to verify their identity with Companies House or risk enforcement action and penalties.

18 Sep 2026

In rules brought in under the Economic Crime and Corporate Transparency Act 2023, directors are required to verify their identity with Companies House or risk enforcement action and penalties.

Since 18 November 2025, newly appointed directors must verify their identity before acting as a director. Existing directors are required to verify during a 12-month transition period, when filing the company's next confirmation statement. The aim is to ensure that directors controlling businesses can be identified and held accountable in efforts to address the misuse of UK companies for criminal purposes.

Three directors were fined at City of London Magistrates' Court on Wednesday 16 September; two for continuing to act as directors despite not completing identity verification and one for 'failing to take reasonable steps' to prevent someone acting as director while unverified. The three directors were also prosecuted for failing to file confirmation statements within the statutory period.

Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, said:

'These cases send a clear message that identity verification is not optional. The vast majority of directors and people with significant control will comply with the new requirements, but where individuals fail to meet their legal obligations, Companies House will take appropriate enforcement action.'

Internet link: The Insolvency Service and Companies House