ID Verification Action Points
Now that the Economic Crime and Corporate Transparency Act 2023 has received Royal Assent, companies should start planning as to how the ID verification process will work for their company, directors and PSCs.
Companies need to start communicating with their directors and PSCs about what is happening, and the expected timescales (likely implementation during 2024).
Companies will need to think about the following:
- How the IDs of directors/PSCs will be verified and by whom, for example, will it be directly by Companies House (CH) or through an ACSP?
- Are there directors/PSCs who will not use the online system?
- Will directors/PSCs ID verify themselves, or will the company organise it for them?
- Are PSCs to ID verify only when contacted by CH, if so, PSCs need to be aware of this. How will this be communicated to PSCs?
- If using a third party ACSP, what information will the ACSP require to issue a Verification Statement?
- How will company stakeholders, most particularly directors and PSCs be made aware of the new rules on ID verification and the importance of notifying CH within the set timescales?
- Companies will need to consider carrying out disqualification checks on proposed directors/PSCs as standard going forward.