ACSP: How Can Accountants Prove & Verify Clients’ Identity

The UK government has introduced stricter identity verification requirements, and any negligence or failure could result in civil penalties and criminal charges. This is part of the broader Authorised Corporate Service Provider or ACSP registration regime.

With the new ACSP requirement introduced as the part of Economic Crime and Corporate Transparency Act 2023 (ECCTA), accountants and corporate service providers must ensure the mandatory identity verification of company directors, PSCs and others linked to UK businesses.

But how can accountants verify someone’s identity under this new requirement? Let’s explore.

How Can Accountants Verify Identities Under ACSP?

To verify the identity of your client (company directors, PSCs & others), first you need consent from the client to act on their behalf. For this, login to the HMRC agent service account, navigate to the “Manage your client’s MTD services” section and follow the prompts.

Once you get consent from the client, you’ll need the client’s Unique Reference Number (UTR), National Insurance Number (NIC), company registration number and proof of identity. Additional documents such as a passport, client’s business registration documents, and tax returns may also be required based on the client’s risk profile.

In addition to this, ensure you submit a statement to the registrar to confirm that the ID verification checks meet the required standard and make sure to maintain records of client pertaining to ID verification checks.

Verification Process For “Harder to Verify” Officers

Accounts may face challenge to verify small groups of individuals categorised as “Harder to Verify” officers. These group typically involves:

• Overseas residents with non-biometric passports
• Individuals with unverified residency statuses

For such individuals, accountants have two options: either digital verification or in-person verification.

Most often, “harder to verify” officers would fail the digital verification process. So, accountants must complete all the paperwork and processes to plan for in-person verification. This typically involves sending client documents to the notary and prepping them for an interview.

Reverification: What Accountants Need to Know

This is different from registering as an ACSP with Companies House. If the Companies House doubts the accuracy of information provided on behalf of a client, it issues a reverification notice.

In this scenario, accountants are required to comply and provide additional evidence regarding the identity of the client within 42 days. Failure to do so would result in suspension or cessation of the verified status of your client.

Upon suspension of verified status, accountants must submit a new application for verification on behalf of their client.

Conclusion

The new requirement of mandatory identity verification is a bold step by the UK government to ensure corporate transparency, reduce financial crime, and enhance trust in business transactions. Under this new requirement, directors, PSCs and other significant person in business must verify their identity.

Accountants must ensure compliance with this new requirement to operate legally and verify identity on behalf of clients. They can do this by smoothly handling the client’s verification process via the HMRC agent service account.