On the 8th of April, Companies House allowed individuals to start verifying their identities directly with them or via an Authorised Corporate Service Providers (ASCP). It follows the introduction of identity verification to UK company law in 2023 which gave Companies House new powers to tackle economic crime.
The voluntary period for verification is now open, with the changes becoming a legal requirement in autumn this year. After that point, over six million registered individuals will have 12 months to comply.
It offers an opportunity for Companies House to understand who is setting up and controlling companies in the UK as part of raft of changes designed to combat fraud and financial crime. Yet for the individuals and ACSPs, it presents yet another compliance task to handle which, if not done correctly, could lead to operational restrictions and financial penalties.
That’s why, to coincide with the changes, Credas has unveiled its new Director Verification checks to make this process simple and efficient. Here we break down the changes and how the new checks can help.
How to verify a director’s identity
ASCPs will act as the alternative gateway to verifying identities directly with Companies House providing an easier way for directors and business owners to comply.
In order to satisfy Companies House requirements, ASCPs will need to obtain and verify keep information on their clients and then register this with them. The five steps outlined by Companies House are:
1 – Ask for information about the person such as their current & former name, current & former address, DOB and an email address Companies House can use to contact them
2 – Get evidence to verify the person’s identity such as official documents or utility bills from the list of documents listed here
3 – Check the evidence is real – ASCPs can either choose to this manually in person, which will require evidence that they staff have been trained sufficiently to do so or use Identity Verification Technology that has been proven capable of verifying documents using the biometric / cryptographic features within them.
4 – Check it is a real identity, and it belongs to the person claiming it by comparing the evidence submitted with the details known about them.
5 – Keep records of the identity checks for 7 years
ASCPs can choose to conduct Director ID verification manually, which involves accruing physical ID documents in person and could lead to a major backlog before the deadline, or to integrate digital tools to help facilitate the process.
Credas’ new checks are built to streamline compliance by combining the latest Companies House standards with existing AML regulation. By integrating this dual compliance approach, ACSPs can feel much more confident in their compliance regime and significantly reduce their administrative burden.
In particular, with mandatory checks set to rapidly increase, Credas’ ‘bulk invite solution’ can play a key role in keeping ASCPs’ houses in order. In just a few clicks, ASCPs can send out verification requests to their entire client base without needing to contact them directly, meaning they can keep operations ticking over while mitigating disruption to services.
This goes alongside Credas’ existing AML software capabilities that enable ACSPs to seamlessly conduct checks like ID verification, bank account verification and sanctions screening.
Given the number of new ID verification checks required, one crucial aspect of the solution is the ability to remediate false positives quickly and efficiently. This can be a laborious and time-consuming task and Credas eliminates this pain point for ASCPs.
Why Credas?
With more than 4 million downloads and over 250,000 five-star reviews, Credas is the highest-rated IDV app in the country. The company is certified against the Digital Identity and Attributes Trust Framework, which means it provides the highest-standard of identity verification.
The mandatory Companies House changes are only months away. From autumn onwards, all newly appointed directors and PSCs will have to complete identity checks – and all current directors will then have to fall in line by autumn 2026.
Demand for robust identity verification is set to grow. But Credas’ new Director Verification checks can provide a crucial helping hand in getting your house in order with no bother at all. Want to see how Director Verification checks can help you stay compliant? Get in touch for a demo of our new solution.
