Authorised Corporate Service Providers:  How the Accountancy Sector can support the fight against economic crime 

Following the introduction of the Economic Crime and Corporate Transparency Act to UK law, we at Companies House have been afforded enhanced powers to combat financial crime. Our priority is to increase corporate transparency and accountability, and accordingly, businesses will have to adapt to ensure they are compliant with this evolving practice.     The accountancy sector will be specifically affected by these changes, which will be implemented in stages across the next few years. Once these changes have been fully integrated, sole-traders and third-party providers who wish to file on the companies register will be required to register as an Authorised Corporate Service Provider.    

What is an Authorised Corporate Service Provider (ACSP)?    

In the future, all third-party providers will be required to register as an Authorised Corporate Service Provider (ACSP) before submitting information or conducting identity verification checks for their clients. 

Applicants must ensure they are supervised by a UK Anti-Money Laundering (AML) supervisory body. There are 25 supervisory bodies within the UK such as ICAEW or ACCA and a full list can be found here.     

Once the registration service becomes fully operational, businesses will be asked to provide a membership number as proof of their supervisory body affiliation during registration. Non-incorporated businesses or sole traders will also need to offer additional information for cross-referencing with AML data.     

Following the completion of an ACSP registration, ACSPs will receive a digital account and a unique identity number. Initially this will enable them to conduct identity verification checks for their clients and submit their clients’ identity information to the Registrar.    

The Registrar upon receiving the client identity credentials will issue a Companies House Personal Code to the identity verified individual. It is this code that will be required to be submitted with information on incorporation or appointment of individuals when these requirements commence in Autumn 2025.    

The prioritisation of identity verification is a linchpin of the Economic Crime and Corporate Transparency Act, with more reforms to be gradually implemented across the next few years.    

What exactly is the Economic Crime and Corporate Transparency Act (ECCTA)?    

The ECCTA seeks to reform the role of Companies House by improving transparency over UK companies and other legal entities to strengthen our business environment. It emphasises improving the visibility of corporate ownership, compelling beneficial owners to disclose their information and limiting the opportunity for criminals to hide illegal activities. The act also aims to empower Companies House with stronger enforcement capabilities, enabling investigations and legal actions against those involved in economic crimes.     

At Companies House, we are committed to fostering a more accountable business environment by tightening specific regulations, and of course, this inevitably requires a particular focus on identity verification.    

Registration in Spring 2025     

In February 2025, third-party providers who wish to carry out identity checks on behalf of clients for Companies House will be required to register as an Authorised Corporate Service Provider (ACSP). From Spring 2026, third party providers will also have to register their business as an ACSP to file any information on behalf of other companies.  

The ACSP checklist:    

• Familiarisation with latest procedures: Ensure you understand the application process for registering as an ACSP through Companies House’s systems to facilitate a smooth transition.   
• Identity verification processes: Review and update your IDV processes to ensure they meet the new requirements.   
• Anti-Money-Laundering compliance: Confirm that you are AML regulated, as this is a necessary condition for becoming an ACSP.   

Risks of non-compliance   

Our approach to compliance will be to work with ACSP’s to raise compliance standards and improve the accuracy of the information being filed. However, if non-compliance persists, the Registrar has the power to suspend an ACSPs account while any misconduct is investigated. The Registrar also has the power to cease the ACSP completely if they are deemed unfit to carry out ACSP functions. Public notices will be published when an ACSP has been suspended or ceased.   

KEY STEPS    

To facilitate a seamless transition, accountants should:    

• Establish and maintain strong identity verification protocols in daily operations   
• Ensure compliance with Anti-Money Laundering (AML) regulations   
• Regularly check for updates on the ACSP registration process via Companies House   

Set your practice up for success    

We encourage accountants to begin implementing these proactive steps from February 2025. Preparing ahead of time will not only ensure compliance but also position accountants as trusted leaders in corporate governance, enhancing both business operations and client trust.    

Full resources and guidance on meeting the new requirements will be available and regularly updated on the Companies House website.