In brief
On 17 September 2026, the Insolvency Service and Companies House published a notice stating that the Insolvency Service has brought its first prosecutions against individuals who failed to verify their identity with Companies House, as required under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).
The prosecutions were brought against existing directors of UK companies. Two directors were prosecuted for continuing to act as a director after the deadline for completing their own ID verification (IDV) requirements had passed. Notably, a third director was prosecuted for having failed to take reasonable steps to prevent another director of the same company from continuing to act while unverified. As failure to comply with applicable IDV requirements under ECCTA is a criminal offence, the directors received criminal convictions for non-compliance.
These prosecutions represent a significant step in the enforcement of the new requirements introduced by ECCTA, and clearly signal that the Insolvency Service is motivated to ensure compliance and prepared to take action against non-compliant individuals. There is now a clear risk of prosecution for those who continue to act without complying with the IDV regime.
In detail – IDV Regime
Background
ECCTA introduced a mandatory IDV requirement for various categories of individual. The regime is being implemented in tranches, with the first mandatory IDV requirements applying to directors (or equivalent), persons with significant control (PSCs), members of an LLP, and directors of an Overseas Company with effect from 18 November 2025.
With effect from a date that has not yet been determined, mandatory IDV will be introduced for a second tranche of person, such as individuals who make filings for a company (e.g., company secretary, employee), a "relevant officer" of a registrable Relevant Legal Entities (i.e., the corporate equivalent of a PSC), officers of corporate members of an LLP, a "registered officer" of any corporate general partner of a Limited Partnership, and corporate directors. We will continue to monitor developments and provide updates as further details become available.
Offences under the regime
Under ECCTA, a person who is appointed as a director of a company cannot act as a director unless and until their identity has been verified. Although it is permissible for a company to appoint a person whose identity has not been verified, section 167M Companies Act 2006 (CA 2006) makes it a criminal offence for the person "to act as a director of the company" unless their identity is verified. There is also a corresponding offence for the company and its officers in default if they fail to ensure that a person acts as a director only when their identity has been formally verified.
Section 167N CA 2006 contains a related prohibition, also supported by criminal liability in the event of breach, requiring that a person must not act as a director until notice of their directorship has been given to Companies House, which includes confirmation of the director having completed IDV.
Insolvency Service prosecutions
The Insolvency Service has now confirmed that it has brought the first criminal prosecutions arising from failures to comply with IDV requirements.
Two individuals were each found guilty of acting as a director of a UK company at a time when their identity had not been verified, in breach of the prohibition in section 167M(1). Notably, another director was found guilty of acting in breach of the prohibition in section 167M(2), which requires the company itself to ensure that an individual does not act as a director unless the individual's identity is verified. In this case, the individual had completed their own IDV in accordance with the requirements, but failed to take reasonable steps to ensure that an unverified individual did not act as a director of the company.
These cases clearly demonstrate that enforcement action will be taken where individuals deliberately or negligently fail to comply with the new IDV requirements.
Key issues to be aware of
Individuals subject to the IDV regime should be aware of the following:
- New appointments: individuals taking up a new directorship (or other registrable role) should complete IDV before their appointment is registered at Companies House, and crucially before they begin acting as a director.
- Existing appointments: those already registered as a director and acting must complete IDV within the relevant deadline. The initial transition period for appointments or positions that existed on 18 November 2025 ends on 17 November 2026: all individuals who were a director (or equivalent), PSC, member of an LLP, or director of an Overseas Company on 18 November 2025 must ensure that they have obtained IDV before the transition period ends. The specific timeframe for completion of IDV should be confirmed on a case-by-case basis, as this will vary based on the relevant registrable position. For directors, IDV must be completed and reported in the company's first confirmation statement filed after 18 November 2025.
- Ensuring compliance: the recent prosecutions confirm that the Insolvency Service will pursue enforcement not only against individuals who have failed to complete their own IDV, but also against directors who fail to take reasonable steps to prevent unverified individuals from acting. Companies should therefore actively monitor and ensure that all members of the board have completed IDV before acting as a director.
Individuals can verify their identity either:
- Directly through the online system at Companies House, using an approved identity document
- Through an Authorised Corporate Service Provider.
In connection with the filing of confirmation statements, it should be noted that, in practice, Companies House has not in recent years pursued companies for late filing of confirmation statements where the company had applied for strike-off. However, Companies House's approach has recently changed in line with the implementation of ECCTA and the IDV regime, such that companies are now being pursued for outstanding confirmation statements notwithstanding the submission of a strike off application. Companies in the process of being struck off should therefore continue to file confirmation statements until the company has been formally dissolved.
Next steps
Those who are, or believe they may be, required to verify their identity should:
- Confirm whether they have already complied with their IDV obligations, obtained their "unique identifier" from Companies House, and notified Companies House in respect of each registrable role held
- If not yet verified, take immediate steps to verify their identity and notify Companies House at the relevant time
- Ensure that all IDV requirements have been complied with by other registrable persons (especially directors) before they act.
We will continue to monitor developments and provide updates as further details emerge and additional requirements under ECCTA come into force.