With just two weeks left before the UK’s ECCTA identity verification deadline, a Vistra survey shows low compliance among international firms. Over half of directors admit to not meeting requirements, risking fines and reputational harm. Only 56% are confident in identifying all Persons with Significant Control, raising compliance concerns and penalties.

Companies House data reveals only 800,000 out of seven million individuals have completed identity verification. Failure to comply with the ECCTA can lead to fines, bans on document filing, and removal from the register. Awareness of the law’s obligations and deadlines remains a challenge, with one in three respondents unaware of the requirements.

UK-based firms are the least prepared globally for ECCTA compliance, with only 72% of directors aware of the law. Compliance rates for identity verification and the Failure to Prevent Fraud offence are lowest in the UK compared to other regions. Concerns about penalties, operational disruption, and reputational harm are lower among UK respondents.

Despite challenges, the ECCTA is strengthening the UK’s corporate governance standards, making it a global benchmark. Two-thirds of global directors are more likely to establish UK entities due to the verification requirements. Companies should act early to avoid disruption and backlogs, as non-compliance may lead to enforcement actions and damage stakeholder confidence.

Read more at Yahoo Finance: Vistra survey exposes ECCTA readiness shortfall