Company directors are being warned to comply with new identity verification legislation to avoid prosecution.
Saint & Co Chartered Accountants has issued the warning following the first court convictions involving directors who failed to meet their legal obligations.
Identity verification became a legal requirement on November 18, 2025, under reforms introduced by the Economic Crime and Corporate Transparency Act 2023. The changes require people with significant control, including directors, to officially verify their identities to Companies House in a bid to prevent the misuse of companies for illegal purposes.
Three company directors were convicted at the City of London Magistrates’ Court in September after failing to comply with the requirements, all being fined and made to pay court costs and victim surcharges.
The charges related to one director continuing to participate in board-level decisions and sign company accounts while unverified. Another, despite verifying his own identity, was prosecuted after failing to take reasonable steps to prevent an unverified fellow director from continuing to act, and the other continued acting as a director without completing the required verification.
The team at Saint & Co is now urging directors to act promptly and not assume they can wait until the end of the 12-month transition period.
New directors appointed from November 18, 2025, must complete verification before acting. Existing directors must verify their identity and supply their personal Companies House code as part of their company’s next confirmation statement.
This means individual deadlines are linked to confirmation statement filing dates rather than one universal deadline.
Lindsay Farrer, a Partner at Saint & Co, said: “These first prosecutions demonstrate that identity verification is not simply another administrative exercise but is a legal responsibility, and directors who fail to comply could face serious consequences.
“It is also important for directors to understand that completing their own verification may not be enough. They must ensure that unverified individuals are not allowed to continue acting on behalf of the company.
“We strongly recommend checking your position now, obtaining and retaining your personal code and making sure the requirements have been met across every company in which you hold a role.”
Verification can be completed free of charge online through GOV.UK One Login or through an Authorised Corporate Service Provider. Once verified, directors receive a personal code which must be supplied for each relevant company role.
Failure to comply can lead to criminal prosecution, fines, financial penalties, restrictions on future appointments and director disqualification.
Saint & Co can be contacted at www.saint.co.uk.
