The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is a landmark regulation designed to strengthen the UK’s fight against financial crime and improve corporate transparency.
With many of its provisions coming into force as of 25 March 2025, the legislation presents a significant shift in compliance requirements for UK-based businesses. Companies must now familiarise themselves with the Act’s scope and ensure operational readiness to avoid severe penalties, claims SmartSearch.
At the core of ECCTA is a commitment to combat fraud, money laundering, and the misuse of UK corporate structures. It builds upon the foundations of the 2022 Economic Crime (Transparency and Enforcement) Act, which focused heavily on sanction enforcement and identity verification following geopolitical tensions, notably the Russian invasion of Ukraine. ECCTA takes these measures further, introducing more stringent transparency obligations and new corporate responsibilities.
One of the most impactful changes introduced by ECCTA is the expansion of Companies House powers. The registrar will now be able to verify the identities of company directors and people with significant control (PSCs), as well as reject filings that include false or misleading information. This marks a major shift in corporate governance and places greater accountability on businesses to ensure data accuracy.
Another major provision of ECCTA is the introduction of broader transparency rules. Companies will be required to disclose more information about their ownership and control structures. This includes enhanced reporting on shareholders and PSCs—part of a broader strategy to eliminate opaque corporate arrangements that can conceal illicit activities.
Stronger anti-money laundering (AML) measures also feature prominently in the legislation. Businesses must now conduct more rigorous due diligence checks and maintain more accurate and up-to-date records. This includes verifying customer identities, sources of funds, and transaction patterns, with a heightened responsibility to detect and report suspicious activity.
Find the full post on RegTech Analyst here.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
Investors
The following investor(s) were tagged in this article.
