Members of LLPs must verify their identity with Companies House from today, as part of changes under the Economic Crime and Corporate Transparency Act aimed at deterring illegal use of the register.
It comes amid concerns that only one million of the estimated seven million directors, PSCs and LLP members have verified their identities with Companies House.
From today, identity verification became a legal requirement and it marks the start of a 12-month transition period.
Directors of companies and members of LLPs can verify their identity through Companies House or through an authorised corporate service provider (ACSP). Solicitors, who undertake anti-money laundering supervised activity, can apply to become ACSPs, which can carry out identity verification checks, as long as they meet the same level of assurance as those who verify directly with Companies House.
Meg Ogunsola, director of entity management solutions at Vistra, a business services company, commented: ‘Despite the mandatory identity verification regime kicking off on Tuesday, only one million of the estimated seven million directors, PSCs and LLP members have verified their identities with Companies House. That’s less than 15%, and with deadlines fast approaching for many, it’s a real concern.
‘If people don’t get moving, we could see significant backlogs. Companies House has already made it clear there’ll be no leniency, even if there are tech issues or delays. At this rate, many will be at risk of fines, blocked filings or being struck off the register entirely.
‘What’s even more worrying is that over half of UK companies don’t actually know who their PSCs are. Companies House is taking no exception to inaccurate documentation, so this isn’t the moment for complacency.’
Identity verification for corporate members of LLPs will be introduced at a later date, Companies House said.
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