New director verification rules 'will cut corporate register', experts warn

"The UK's corporate register is expected to shrink significantly over the next year as new identity verification rules for company directors and beneficial owners come into force on Tuesday, according to specialists in corporate transparency and financial crime. From 18 November, all new directors and persons with significant control (PSCs) must verify their identity with Companies House before they can form or run a company. Existing directors and PSCs will be phased into the system over the next 12 months, completing verification when they next file a confirmation statement."

"The reforms are aimed at tackling fraud, money laundering and the misuse of shell companies by ensuring that "the people setting up, running and controlling companies are who they say they are," Companies House said. More than one million people have already verified their identities, with up to seven million more expected to complete the process over the next year."

From 18 November, all new directors and persons with significant control (PSCs) must verify their identity with Companies House before forming or running a company. Existing directors and PSCs will be phased into the system over 12 months and must complete verification when they next file a confirmation statement. Acting as a director without verification will become a criminal offence. Reforms aim to tackle fraud, money laundering and misuse of shell companies. Specialists predict new incorporations will fall sharply as unwilling individuals drop out, shrinking a register that listed 5.5 million companies in September.

Read at Business Matters