The Economic Crime and Corporate Transparency Act (ECCTA) was originally introduced to enhance oversight of the UK’s financial landscape, with a strong emphasis on transparency, accountability, and fraud prevention. As the UK’s economy continues to grow and evolve, so too must the legal frameworks that support it.
In 2025, the ECCTA has made substantial changes in response to the global economy's changing circumstances. The UK's capacity to fight economic crime, enhance corporate transparency, and preserve public confidence is intended to be strengthened by these reforms.
In this article, we will explore these key 2025 changes in detail and discuss practical steps that businesses and individuals can take to adapt effectively to the updated requirements.
Suppression of Sensitive Personal Data
From 4 January 2025, new provisions under the Economic Crime and Corporate Transparency Act (ECCTA) give individuals the right to suppress certain sensitive personal data from public records held by Companies House. Specifically, directors and persons with significant control (PSCs) can apply to remove their full date of birth, signatures, and residential addresses from publicly accessible documents.
These changes primarily affect company directors, secretaries, and PSCs registered with Companies House. The aim is to protect individuals who may be at risk due to the public availability of personal information, particularly in light of increasing concerns around fraud, identity theft, and personal security.
Eligible individuals can apply to Companies House to have their sensitive information suppressed. The suppressed data will no longer be visible to the public but may still be accessed by law enforcement and other authorised bodies. Affected individuals should review their company filings and consider submitting a suppression request if they wish to protect their personal information.
ACSP Registration and the Start of Identity Verification
Building on these reforms, from March 2025, Authorised Corporate Service Providers (ACSPs) were required to register with Companies House and begin conducting identity verification (IDV) on behalf of their clients. ACSPs will act as regulated intermediaries, ensuring that individuals involved in company filings are properly verified before any submission is accepted.
Businesses must fulfil qualifying requirements and adhere to anti-money laundering (AML) duties in order to become an ACSP. After registering, ACSPs are able to confirm the identity of directors, PSCs, and other participants in corporate structures and file paperwork on behalf of their clients. This modification is essential to Companies House's efforts to create a more transparent and safer registry.
Identity Verification
Companies House has introduced a new identity verification requirement in conjunction with the launch of ASCP and the concept of authorisation. The purpose of this policy is to increase the accuracy and transparency of the data kept on the public register while lowering the danger of fraud.
All directors and Persons with Significant Control (PSCs) of UK firms would have to prove their identities under the new regulations. This applies to both recently appointed and current employees. While identity verification is currently available on a voluntary basis, Companies House plans to make it mandatory for all newly appointed directors and PSCs by November 2025. A transitional period of 12 months will be provided for existing directors and PSCs to complete their identity verification.
Identity verification can be completed either online via GOV.UK One Login using valid photo identification (such as a UK passport or driving licence) or through an Authorised Corporate Service Provider (ACSP), such as an accountant or company formation agent, who is registered to carry out the verification on behalf of individuals.
Failure to Prevent Fraud Offence
From 1 September 2025, the Failure to Prevent Fraud Offence will come into force under the Economic Crime and Corporate Transparency Act 2023. This offence holds large organisations criminally liable if a person associated with them—such as an employee, agent, or subsidiary—commits fraud for the organisation’s benefit and the organisation failed to have “reasonable procedures” in place to prevent it. Importantly, the offence applies even if senior management was unaware of the fraud. It has been introduced to close a legal loophole that previously made it difficult to hold companies accountable unless senior managers were directly involved. By shifting responsibility onto organisations to proactively prevent fraud, the legislation aims to strengthen the UK’s ability to combat economic crime and improve corporate accountability.
This new requirement applies to large organisations only. A company is considered "large" if it meets at least two out of three criteria:
- more than £36 million in turnover,
- over £18 million in assets, or
- more than 250 employees.
It affects both UK-based companies and non-UK companies that carry on business in the UK. Smaller businesses are not currently included but may be brought into scope in the future depending on how the legislation evolves.
Under this offence, organisations are liable for frauds committed by employees or others connected with them. The benefit gained from the fraud can be financial or non-financial and does not have to have been received. There is no requirement to prove that directors or senior managers ordered or knew about the fraud.
To prepare, companies should review their fraud risks and put in place reasonable procedures to stop fraud from happening. This could include staff training, internal controls, whistleblowing policies, and regular checks. The government is expected to publish guidance to help companies understand what is expected of them before the law comes into effect.
Corporate Director Restrictions
From late 2025, the UK government will enforce stricter rules on the use of corporate directors. Under the new regulations, only UK-registered legal entities will be permitted to serve as corporate directors of UK companies. Additionally, all officers of these corporate directors must undergo identity verification, adding a new layer of transparency and accountability.
This change will significantly impact businesses that rely on corporate directors for structural flexibility, privacy, or tax efficiency. Companies must now review their board compositions to ensure compliance, replacing or restructuring any non-compliant corporate directors well before the deadline. Proactive adjustments will help avoid potential regulatory breaches and operational disruptions.
Reforms to Limited Partnerships
There are significant reforms aimed at modernising and fortifying the regulation of limited partnerships (LPs). These reforms bring LP filing obligations more in line with those of companies, increasing transparency and reducing the potential for misuse.
All LP registrations and updates must now be submitted through an Authorised Corporate Service Provider (ACSP), which ensures proper identity checks. LPs are required to file an annual confirmation statement via an ACSP, with existing partnerships given six months to comply.
A UK registered office address is now mandatory and must be updated within 14 days if it changes. Detailed information on both general and limited partners—including personal details for individuals and company details for entities—must also be submitted and kept current within 14 days of any changes. If a corporate entity is a general partner, it must name a managing officer whose identity is verified and provide a named individual contact if the managing officer is also a corporate body. Finally, LPs must provide a registered email address for official correspondence, which must be kept up to date.
These changes align LPs more closely with company requirements, strengthening transparency and regulatory oversight.
Overseas Entities Register Update
While we have covered the upcoming 2025 updates affecting UK companies, it is also important to highlight significant changes made for overseas entities. Stricter transparency regulations and increased clarity on intricate corporate ownership arrangements are the goals of these reforms.
Since the introduction of overseas entity registration in August 2023, which brought much needed streamlining to the property market, further changes are set to deepen scrutiny of property ownership by overseas entities.
Below are the key updates concerning overseas entities, starting with pre-registration details:
Pre-registration details
Any changes in beneficial ownership that had place during the pre-registration period must be disclosed by foreign corporations in their update statements as of July 31, 2025. The Economic Crime and Corporate Transparency Act 2023 established this additional criterion in order to increase property ownership transparency in the United Kingdom.
The pre-registration period varies for each overseas entity. It covers the timeframe between 28 February 2022 and either:
- The end of the transition period on 31 January 2023, or
- The entity’s registration date if it registered before 31 January 2023.
If the overseas entity owned UK property or land during this period, the next update statement must include additional information about the entity’s ownership structure during that time.
Specifically, entities must report whether they had any of the following during the pre-registration period, if not previously disclosed:
- Registrable beneficial owners
- Trusts involved with the entity
- Beneficiaries of trusts involved with the entity
It is important to note that managing officers during the pre-registration period do not need to be reported.
For update statements filed between 31 July 2025 and 31 October 2025, entities can submit this information via a paper update statement, which carries a fee of £467. Alternatively, entities may choose to wait and file online the following year, with a lower fee of £234, allowing additional time to gather the required details.
All information provided must have been verified by a UK-regulated agent within three months prior to the date of the update statement.
Disclosure of trust information
From 28 February 2025, individuals connected to trusts on the Register of Overseas Entities (ROE) can apply to protect their information if disclosing it could put them, or someone they live with, at risk of violence or intimidation. Protection is also available if the individual is under 18 or lacks mental capacity. This ensures sensitive information remains confidential where there is a genuine risk.
Then, from 31 August 2025, anyone will be able to request access to trust information on the ROE, including beneficiary details. Applicants must provide specific information, such as the name of the trust, and in some cases like when the request involves minors or multiple entities, they must also demonstrate a legitimate interest, such as investigating financial crime. The Registrar can refuse requests in certain cases, including if disclosure would affect national security or an ongoing investigation.
These changes aim to increase transparency in UK land ownership and highlight the need for trustees and beneficiaries to be aware of the upcoming public access rules.
The 2025 updates to the Economic Crime and Corporate Transparency Act mark a major step in strengthening the UK’s fight against economic crime and improving corporate transparency. With new rules on identity verification, trust disclosure, and tighter oversight of partnerships and corporate directors, businesses must prepare early to stay compliant. Companies, trustees, and overseas entities should review the changes and act ahead of upcoming deadlines.
FAQs
All directors, Persons with Significant Control (PSCs), and corporate officers of UK companies and limited partnerships must complete identity verification. This includes both new appointees (by November 2025) and existing ones (within the 12-month transitional period).
Companies House will not accept filings from unverified individuals, and non-compliance could result in enforcement action, including possible criminal sanctions or being barred from acting as a director.
Effective from 1 September 2025, large organisations can be held criminally liable if someone associated with them commits fraud for their benefit and the organisation failed to put “reasonable procedures” in place to prevent it.
Yes. From 28 February 2025, individuals can apply to suppress trust-related information if disclosing it could put them or someone they live with at risk (e.g., violence or intimidation).
From late 2025, only UK-registered legal entities can be appointed as corporate directors. All officers of the corporate director must also undergo identity verification.
