The Economic Crime and Corporate Transparency Act 2023: what’s next?

22 May 2025 | 3 minute read

The Economic Crime and Corporate Transparency Act 2023 ("ECCTA") came into force on 26 October 2023.

Why are we still talking about ECCTA?

So why are we talking about it now? ECCTA is being implemented in phases, with key parts of ECCTA coming into force during 2025.

Background

The Government has already introduced a register for persons of significant control and the overseas entity register to promote corporate transparency. ECCTA takes that further and is intended to prevent abuse of UK corporate structures and to reduce economic crime.

Below is a summary of the key changes already introduced.

Reforms to Companies House which are intended to improve accessibility and transparency of corporate information contained on the Companies House Registry. For example, companies must have an appropriate office address and email address for communication (please refer to this article for more detailed information: Energy Sector: are you prepared for Companies House's enhanced powers?); Companies House can share data with other government departments and law enforcement bodies; a statement of lawful purpose regarding the company's activities is now required for all company incorporations and included on the annual confirmation statement for existing companies; and Companies House have received greater powers of enforcement for non-compliance (powers include ability to apply fines, annotate a company's record and prosecute companies).

In December 2023, the identification doctrine relating to corporate criminal liability for economic crimes was broadened. Previously, it was necessary to demonstrate that the 'directing mind and will' of a company was charged with an economic crime in order for a company to also be charged with a criminal offence, meaning that at least one of the officers and directors of the company had to be involved with committing the economic crime. In many cases, particularly in large organisations where key functions are delegated to different teams, it was not the directors committing the economic crimes and the Serious Fraud Office ("SFO") was unable to bring charges of corporate criminal liability against the companies. The identification doctrine has been widened under s196 ECCTA to include anyone in a senior management position acting within the actual or apparent scope of their authority to commit the economic crime, using the definition of a 'manager' as set out in s2 of the Corporate Manslaughter and Corporate Homicide Act 2007.

From 8 April 2025, voluntary identity verification for all directors, persons of significant control and registrable relevant officers of relevant legal entities (unless exempt), as discussed in our previous article here. Companies House has also published guidance on how to meet the identity verification standard here.

What is still to come?

As well as the changes that we have already seen, there are further changes set to be introduced later this year (2025) and beyond, as set out below.

1 September 2025: The much anticipated failure to prevent fraud offence (or "FTPF") will come into effect from 1 September this year and will apply to large organisations. This has previously been covered in an article by our commercial litigation team here.

Dates to be confirmed: Other Companies House reforms relating to filing requirements for the annual accounts for small companies and micro-entities and filing requirements for limited liability partnerships;

Autumn 2025: Extending the identity verification regime to make it compulsory on incorporation for new directors and PSCs and starting a year-long transition period to require identity verification of all existing directors and PSCs through confirmation statement filings;

Summer 2026: Presenter verification, requiring identity verification of all presenters filing any document to Companies House or requiring a third-party agent to be registered as an authorised corporate services provider ("ACSP"). Companies House has published information on how to register as an ACSP here and guidance around being an ACSP here.

Summary

The ECCTA timetable is being kept under review. Most recently (in March 2025), Companies House published a policy paper outlining the transition plan for ECCTA.