The Government has issued a warning to all British businesses as new ID checks have been launched. Companies House, the government business registry service, announced that as of today (November 18), anyone who becomes a company director or a person with significant control (PSC) will be required to verify their identity with Companies House.
It comes after the controversial Government announcement that you will need a Digital ID to work in the UK in September and the implementation of age verification for 'adult content' according to the Online Safety Act in July. The Government has said this new company registry ID policy is an attempt to tackle economic crime, "will provide more assurance about who is setting up, running, owning and controlling companies in the UK."
They added: "Identity verification will make it harder for people to set up companies or appoint directors using fake or stolen identities. It will make it easier to expose disqualified directors, and link multiple directorships to one person, helping to identify criminal networks."
This has been an issue recently exposed in an investigation which found Kurdish crime networks were illegally employing asylum seekers and selling illegal cigarettes in mini-marts across the UK. One man was found to have 50 bogus companies registered on Companies House.
The new identity verification process will be phased in over 12 months to make a smoother transition period. More than 1.5 million people have already voluntarily verified their identity since the service was released in April.
There are 2 ways for company directors and PSCs can verify their identity:
Verifying through GOV.UK is free. You will need to use existing forms of ID, like a passport or a driving licence, or by answering security questions. On verification, Companies House will supply a personal code. Most people will only have to verify their identity once.
Directors and PSCs will need to provide a statement with their personal code confirming they have successfully verified their identity for each company role they hold. Statements for existing directors must be submitted with the company's confirmation statement. Companies are being contacted directly with this information, as the deadline date does vary. Due dates can also be checked on Companies House.
Failing to comply with identity verification requirements on time is an offence, the Government warned. If you do not verify your identity in time you may be hit with:
Companies House said: "Where there is evidence of aggravated, fraudulent or criminal offences, we will use our strongest powers. We will work with law enforcement partners to deter, disrupt and ultimately convict criminals."
Companies House chief executive Andy King said: "We're determined to help create an environment where honest businesses can thrive. We want them to know that when they're doing business with another company, the information we hold about them is accurate and trustworthy. We also we want to prevent people starting and running companies for criminal purposes."
Small businesses Minister Blair McDougall claimed that this was "a turning point in protecting honest businesses and hard-working consumers from fraud." Adding that with more accurate information on the register, it will "boost confidence, attract investment, and support our mission to grow Britain's economy."
Security Minister Dan Jarvis said: "Criminals are using fake companies as fronts for serious organised crime and they must be stopped. These new measures will ensure fraudulent directors are rooted out and banned, as we continue to pursue those who use dirty money for criminal gain.
"We have intensified our efforts with law enforcement to dismantle criminal networks across the country and have recovered more than £300 million overall in criminal assets in the last year."
