Business advisor says new mandatory identify verification for directors isn’t robust enough, with small businesses suffering the most

A business advisor and accountant feels that Companies House’s new anti-money laundering regulations will make life harder for small businesses, with no real impact on the issue.

Companies House has announced it will make it mandatory for company directors to complete identity verification checks in a bid by Companies House’s to crack down on misuse of the companies register.

However, Colin Bielckus, owner of The Outsourced Finance Director believes that the changes have come in too late, and that criminals will just find ways around it.

He said: “These new regulations are absolutely a good thing, and it’s about time that there was something solid put in place to crack down on criminals. I do believe that it will have a positive impact in weeding out some of the wrong-doers, however, it’s inevitable that people will find a way around it. Small businesses, who are already struggling with a mounting workload, will suffer the most from the additional admin off the back of it, as well.

“I would have liked to have seen something more robust, such as random spot checks that aren’t publicised, which would actually have an impact. Instead, the people who are acting illegally will get more than 12 months to prepare to find a way to get out of or around it. Then, once they’ve passed those checks, technically they’re over the line and safe to do what they please.”

Colin believes the new rules are biased against small businesses and that they are built with large businesses with more than 200 employees in mind.

He said: “A lot of changes that come in to force for UK companies, they are often geared towards large businesses with small businesses an afterthought. A lot of these large companies will have dedicated staff for admin like this, whereas for a lot of small businesses, who are already struggling with a mounting workload, will suffer the most from the additional admin off the back of it, as well – especially those who are above board.”

Colin’s plea to Companies House and HMRC is to look into additional avenues to clamp down on criminals, such as using AI, clandestine checks.

His message to small businesses is to get on top of the admin while they still have time to do so. He added: “The time will pass quicker than you think. You have to do it eventually, so you may as well get ahead of it before the deadline hangs over your head.”

All limited company directors and people with significant control will have until November 2026 to complete the anti money laundering checks.