Directors prosecuted for failing to verify their identity

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduced a range of reforms to strengthen the integrity of the Companies House register, with identity verification at their centre. The regime is intended to improve the accuracy and reliability of corporate information by ensuring that those involved in the ownership and management of UK companies are who they claim to be.

From 18 November 2025, it became a legal requirement under the ECCTA for directors and persons with significant control (PSCs) to complete identity verification. Enforcement has followed swiftly. On 16 September 2026, the Insolvency Service secured its first convictions at the City of London Magistrates’ Court against three directors for identity verification offences and related filing failures.

In relation to one company, two directors were convicted. One was fined £307 with £85 costs and a £123 surcharge (total £515) for failing to take reasonable steps to prevent a co-director from acting while unverified. The other was fined £166 with £85 costs and a £66 surcharge (total £317) for continuing to act as a director—including signing accounts and making decisions—without completing verification.

In a separate case involving a different company, a third director was fined £80 with £85 costs and a £32 surcharge (total £197) for acting as an unverified director and failing to file a confirmation statement.

Some directors may view non-compliance with identity verification as an administrative oversight, but these prosecutions show that it is a serious compliance obligation. Historically, Companies House had limited powers to challenge, verify or reject information. That has changed, and the early enforcement activity indicates a firmer approach to both personal compliance and oversight of colleagues.

Daniel Hart, Senior Criminal Lawyer at the Insolvency Service, said:

“Identity verification is a legal requirement for company directors and forms a key part of efforts to improve the accuracy of the Companies House register and tackle economic crime. These prosecutions demonstrate that directors have responsibilities not only for their own compliance but also for ensuring unverified individuals do not continue acting as directors on behalf of a company.

In both cases, multiple opportunities were provided for the directors to comply with the requirements before enforcement action was taken. There is no option to opt out. Directors who continue to act without verifying their identity risk investigation and prosecution”

In light of these early prosecutions, directors and PSCs should treat identity verification as an immediate compliance priority. Ensure your Companies House details are accurate, complete the required verification promptly, and implement appropriate checks so that no one acts on behalf of the company unless they are properly verified.