The New Role That Can Help Your Business Compliance in Light of the Economic Crime and Corporate Transparency Act

November 19, 2024

The New Role That Can Help Your Business Compliance in Light of the Economic Crime and Corporate Transparency Act

---

By Siobhan Williams

Since the introduction of the Economic Crime and Corporate Transparency Act 2023 (Act), businesses need to be aware of the new, stringent requirements for filing information with Companies House.

Intending to improve data accuracy and counter fraudulent activity, the Act will soon be introducing the role of Authorised Corporate Service Providers (ACSPs). These will be organisations that will verify and submit critical information on behalf of clients to Companies House.

For businesses, this means that understanding the role, requirements and advantages of working with an ACSP in the near future is essential to ensure compliance, minimise risks and streamline processes.

Who can be an ACSP?

An ACSP will be a professional entity authorised to submit information to Companies House. They will act as an intermediary that not only manages filings but also verifies the identities of company officers and shareholders.

Individuals or organisations that undertake anti-money laundering (AML) supervised activities can become an ACSP, such as accountants, solicitors and company formation agents. It is expected that businesses will be able to apply to become an ACSP from spring 2025.

The use of an ACSP will provide assurance to both companies and regulators that information is being submitted with accuracy and due diligence, mitigating errors and non-compliance risks for the company.

Advantages of engaging an ACSP for your business

Working with an ACSP will provide multiple advantages for businesses beyond meeting the bare minimum of compliance requirements including:

1. Reducing the chance of filing inaccuracies, which can incur costly penalties and legal challenges
2. Time saving by streamlining the process. Registered ACSPs will receive a digital account with Companies House; enabling them to promptly submit filings on behalf of its clients
3. Confidence that submissions are verified, accurately documented and compliant with the Act. This level of transparency can build trust with stakeholders, regulators and the public; showcasing a commitment to corporate accountability
4. ACSPs should stay up to date with regulatory changes; offering proactive guidance to ensure businesses stay compliant with new legislative requirements. For boards and compliance officers, this offers peace of mind and fosters long-term regulatory confidence

The Act highlights the importance of accurate and transparent filings with Companies House, and working with an ACSP will be a reliable way to ensure compliance.

With stringent AML oversight, comprehensive identity checks, and a deep understanding of regulatory requirements, ACSPs will help businesses meet legal standards, reduce errors, and streamline filing processes.

If you need advice or assistance with the new requirements of the Economic Crime and Corporate Transparency Act, contact Siobhan Williams using the contact form, on swilliams@1stisp.co.uk or via 02920 829 124 for a free initial chat to see how we can help you and your business.