Three company directors have been fined at City of London Magistrates’ Court in the first court actions brought by the Insolvency Service for failing to comply with mandatory director identity verification rules.
The prosecutions have been secured under the Economic Crime and Corporate Transparency Act 2023, a landmark piece of legislation to clamp down on economic crime, increase corporate transparency, and prevent the misuse of UK companies for fraudulent purposes.
The court heard that multiple warnings and opportunities were given to the individuals to comply with the law before enforcement action was taken.
Directors who fail to verify face criminal prosecution – as do co-directors who allow unverified individuals to remain active on company boards.
Fines and court costs were handed down to directors of White (Reading Properties) Limited and J Isogony Apparel Limited, who also failed to file timely confirmation statements.
Under rules introduced on 18 November 2025, newly appointed directors must verify their identity with Companies House before acting in their role. Existing directors are granted a 12-month transition window to complete verification when filing their company’s next annual confirmation statement.
Law enforcement officials stressed that identity verification is a strict legal mandate with zero option to opt out.
“These prosecutions demonstrate that directors have responsibilities not only for their own compliance but also for ensuring unverified individuals do not continue acting as directors on behalf of a company”, said Daniel Hart, Senior Criminal Lawyer at the Insolvency Service
Martin Swain, Director of Intelligence and Law Enforcement Engagement at Companies House, emphasised that while the vast majority of directors are complying, the agency will actively pursue those who do not.
“These first prosecutions mark an important milestone in strengthening the integrity of the UK’s company register. These cases send a clear message that identity verification is not optional.” Martin Swain, Companies House
Companies House advises all company directors and Persons with Significant Control who have not yet verified their identity to do so immediately to avoid investigation or legal action.
