Economic Crime Act 2025 Digital ID Verification: Mandatory from November
From 18 November 2025, UK company directors will be legally required to complete digital identity verification with Companies House. This change, under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), is central to the UK’s fraud-reduction drive. If you are a director or PSC, it’s time to act.
Overview of the Economic Crime Act 2025
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is transforming how corporate transparency and fraud prevention are enforced in the UK. It strengthens the law to ensure that company registers are accurate, that those in control are identifiable, and that misuse of company structures is harder.
Key provisions include the requirement for identity verification of company directors and people with significant control (PSCs), tightened powers for Companies House to query and remove misleading or false information, and the introduction of a corporate criminal offence of failure to prevent fraud, which came into force on 1 September 2025.
This law is rolling out in phases. One of its central milestones is that from 18 November 2025, identity verification becomes mandatory in many circumstances.
What’s New for UK Directors from 18 November 2025?
Starting 18 November 2025, new identity verification rules take effect. Directors, PSCs, and certain other individuals will need to verify their identity before acting in certain roles.
Here are the main changes:
New directors will need to verify their identity before being appointed to a role or being included at incorporation.
Existing directors and PSCs will have a transition period. They must verify by their next annual confirmation statement after 18 November 2025.
PSCs will need to verify within 14 days of being newly notified, under most circumstances. ∙ There are specific deadlines depending on whether someone was PSC or director before the enforcement date.
This is part of a broader ECCTA implementation strategy that expects 6 to 7 million individuals (directors and PSCs) to have completed identity verification by mid-November 2026.
Best Practices and Tips
To avoid problems once the mandate arrives, directors and companies should take steps now:
Make sure your Companies House record matches your legal identity documents (name, date of birth, address).
Renew any expired photo ID now (passport, driving licence, etc.).
If you are a PSC or director and based overseas, check whether your ID is acceptable and whether you might use an Authorised Corporate Service Provider (ACSP), as some non-UK IDs or processes may differ.
Next Steps
The upcoming rules under the Economic Crime and Corporate Transparency Act 2023 mean that from 18 November 2025, directors and PSCs won’t be able to carry out roles - or be appointed, without digital verification. With the corporate criminal offence of failure to prevent fraud which became law from 1 September 2025, the stakes are high.
Start by checking your records, renewing documentation, and understanding if you’ll need ACSP support. Acting early ensures smoother compliance and shows commitment to transparent, fraud-resistant corporate governance.
