Identity verification is the important process of ensuring that a person is who they claim to be when opening a bank account, applying for a loan, or walking around anywhere in China with a slightly less than satisfied look on their face. You think it can't be faked? Tell that to Agnetha Fältskog, Björn Ulvaeus, Benny Andersson, and Anni-Frid Lyngstad, members of Abba who are now appearing in East London in the bio-flesh as their forty year juniors.
What is good enough for Xi Jinping is fine by Companies House, which is pleased to announce that identity verification is one of the significant measures being introduced by the Economic Crime and Corporate Transparency Bill. Up until now checking our identity is something we have had to endure in person; someone openly sniggering over a passport photo or looking deeply into the staring eyes of a hideous driving licence snapshot. But Companies House are exploring the Avatar world of biometrics; the use of unique physical characteristics to identify someone, like fingerprints, facial recognition, or even iris scanning.
Anyone setting up, running, owning or controlling a company in the UK will need to verify their identity to prove that they are who they claim to be. For new companies and other registerable legal entities, this will mean that all directors (or equivalent) and people with significant control, will need to complete identity verification before or as part of the company incorporation process. For existing companies on the register, all directors (or equivalent) and those controlling persons will need to verify their identity within a set period, to be set out within secondary legislation.
One way of registering will be to verify directly with Companies House, mainly by way of a digital service that links a person with their primary identity document, such as a passport or driving licence. You will do this via an Authorised Corporate Service Provider, who will never ask for your bank details, your entire pin code or why you chose to wear that sweater with those trousers. This route will involve using an intermediary such as an accountant, legal adviser, or company formation agent.
Companies House say that identity verification will make it much harder to register fictitious directors or beneficial owners, stopping the vast majority of fraudulent appointments from reaching the register. It will mean that B Job from Clacton-on-Sea and Anton Villa of Birmingham will need to provide evidence of their existence outside the minds of 16-year old boys.
They know who you are, where you live and what you are thinking.
