UK Firms Face Compliance Crunch Ahead of ECCTA Deadline, Vistra Warns

The clock is ticking for UK businesses as the Economic Crime and Corporate Transparency Act (ECCTA) deadline draws closer.

Indeed, from 18 November, all directors, Persons with Significant Control (PSCs), LLP members and anyone filing on behalf of a company must verify their identity with Companies House.

However, a new survey published by Vistra suggests many firms are nowhere near ready.

It’s Almost Crunch Time, But Nobody’s Ready

A Vistra pulse survey of 100 international company directors found that more than half, around 52%, admitted their organisations were still not compliant with the new identity verification rules. And the reality is that the picture may actually be worse than this.

Companies House data shows that only about 800,000 of the seven million individuals required to verify their identities have done so.

The ECCTA represents one of the biggest shake-ups in corporate transparency in the UK’s history. It’s designed to strengthen trust in UK business by tackling fraud, improving accountability and reducing the misuse of company structures for illicit activity. But, as the deadline looms, confusion and slow adoption are raising some serious concerns about potential disruption. How realistic is this move?

One of the biggest challenges seems to be awareness. Nearly a third of respondents to the Vistra survey said they were still unaware of the ECCTA’s requirements or key dates, despite the law being one of the most significant business reforms since the creation of Companies House in 1844. This lack of understanding could result in financial penalties and reputational damage for firms that fail to comply. It also begs the question, how is it that so many companies are not yet compliant?

Introducing the Failure To Prevent Fraud Clause

The new law also introduces the Failure to Prevent Fraud offence, which came into effect on 1 September 2025. This applies to larger companies meeting at least two of three criteria – that is, annual turnover above £36 million, assets over £18 million or more than 250 employees. However, only around half of respondents who fall under this category believe they are compliant, leaving many firms exposed to potential unlimited fines.

Despite the UK’s strong reputation for corporate governance, Vistra’s findings reveal that British companies are lagging behind their global counterparts. Only 72% of UK directors surveyed were aware of the ECCTA, compared to 76% in the EU, 90% in the Asia-Pacific region and 100% in the US. Compliance rates for both identity verification and fraud prevention were also lowest among UK respondents, while US firms led the pack.

What Does This Mean For Companies Who Default?

This isn’t just a compliance headache – it’s a reputational risk. Companies that fail to verify directors or identify PSCs could face fines, restrictions on filing key documents and even disqualification from the Companies House register. And enforcement is already ramping up, with regulators cracking down on fake directors and non-compliant entities.

Still, it’s not all bad news.

The ECCTA is expected to raise the bar for transparency and boost investor confidence in the UK market. In fact, two-thirds of global directors surveyed by Vistra said they are now more likely to approve new UK subsidiaries because of the reforms, suggesting that, once implemented, the changes could make the UK an even safer place to do business.

The message for startups and established firms alike is clear – the time to act is now.

As Meg Ogunsola, Global Director of Entity Management Solutions at Vistra, warned, companies that wait risk backlogs and enforcement action once verification becomes mandatory. With less than a month to go, the race is on for firms to get their compliance in order before the November deadline.