The deadline isn't coming, it's here.
From November 18th UK businesses must comply with new identity verification requirements for company directors, persons with significant control (PSCs), and those filing on behalf of companies.
Under the new regulation, which forms part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), identity verification will be a compulsory part of incorporations and new appointments of directors and PSCs, and all existing directors and PSCs will need to verify their identities as part of the filing of the annual confirmation statement.
Failure to comply could result in financial penalties and disqualifications.
But whilst the 18th of November is a critical compliance deadline, these changes form just part of a wider reshaping of regulation and refinement of how banks and financial services organisations approach identity verification.
So, the obvious question is – are you ready?
Setting the scene
The National Crime Agency (NCA) estimates the amount of money laundered in the UK to be between £36bn and £90bn, at a total cost of £290bn to the UK economy.
Meanwhile the UK Finance Annual Fraud Report 2025 overall data indicates that the total amount lost to criminals last year, across both unauthorised and authorised channels, was £1.17 billion. And the Office for National Statistics (ONS) recently reported that there were approximately 4.2 million fraud incidents in the first quarter of 2025 alone, a staggering 31% increase on the same period in 2024.
Identity fraud is a significant emerging threat. According to the Cifas 2024 Fraudscape report, identity fraud now accounts for 64% of all fraud losses in the UK.
No wonder regulators are upping the ante.
What regulatory changes can we expect in 2026?
2026 will bring implementation of further Money Laundering Regulation changes that demand more proportionate and effective customer due diligence, including:
- Enhanced Due Diligence (EDD) requirements for unusually complex transactions
- Narrowed definition of high-risk countries, limited to FATF's call for action list
- Transition to a single sanctions list
- Expanded trust registration categories requiring verification
- New requirements to report Companies House PSC register discrepancies
Meanwhile in Europe, the new EU Anti-Money Laundering (AML) package represents a major milestone in the EU's efforts to combat money laundering and terrorist financing. The package includes the EU Single Rulebook Regulation, the 6th AML Directive, and a regulation establishing a new AML Authority (AMLA). Compliance requirements will be rolled out in a phased approach over the course of 2026, with all organisations operating in the EU expected to be compliant by mid-2027.
The cost of getting it wrong
Failure to comply with regulations carries a huge financial and reputational burden. Money laundering prosecutions have surged 36%, with convictions up 7%. Likewise, the FCA's enforcement activity is on the rise. In its 2024/25 report it recorded 37 final notices, over £186 million in fines, and five criminal convictions. The report highly just how bright the spotlight is shining on poor AML controls, failures in sanction compliance, and ineffective customer monitoring.
As UK Finance quite rightly states, as an industry it is our collective priority to prevent these crimes from happening in the firstplace. Proactive prevention is key, and technology is a primary layer of defence.
Banks and financial service organisations that fail to implement robust identity verification processes risk being left behind operationally, reputationally, and commercially.
Risk vs reward
The stakes are high. The consequences of getting it wrong are many and varied, including:
- Criminal offences for directors and PSCs
- Inability to file confirmation statements or make appointments
- Corporate criminal liability
- Enforcement action and substantial fines
- Reputational damage that can take years to recover from
- Inability to efficiently onboard clients in competitive market
- Poor customer lifecycle experiences
However, getting it right delivers:
- Enhanced trust: Demonstrating that financial crime prevention seriously via robust identity verification.
- Superior customer experience: Rapid verification transforming onboarding from friction point to competitive advantage.
- Reduced cost to acquire and serve: Automated, efficient due diligence dramatically reduces manual review costs while accelerating time-to-revenue.
- Regulatory confidence: Demonstrable and auditable frameworks.
- Competitive differentiation: While competitors struggle with compliance, technology enabled leaders capture market share.
The banks and financial services organisations that will thrive in this new era are those that view regulatory change not as burden but as catalyst for transformation. These firms will meet the moment by modernising identity solutions and turning regulatory compliance from cost centre to competitive advantage.
What does a new era of identity solutions look like in practice?
The regulatory changes of late 2025 and early 2026 represent a watershed moment for UK and EU financial services.
Traditional, manual identity verification processes cannot scale to meet the demands of this regulatory environment. Banks and financial service organisations need unified end-to-end identity solutions that leveraging a range of tools and strategies:
By leveraging automated KYC checks, organisations can streamline the onboarding process, enhance accuracy, satisfy CDD, and ensure real-time compliance with ever-changing regulations.
Understanding and mitigating risks associated with business relationships is paramount. KYB compliance automation has become indispensable for organisations seeking to validate the legitimacy of their corporate clients, suppliers, and partners
The capacity and capability to combat crime in a world of regulatory and political change. Unify global sanctions, Politically Exposed Persons (PEPs), and adverse media through a single access point.
Detect and defend against fraud with audit proof customer workflows incorporating mortality screening, email risk assessment, age verification, address lookup, financial verification, and salacious name checks
The ability to provide a faster onboarding journey for your customers and keep them engaged in a smooth end-to-end process, by verifying their age and identity in real-time - using biometrically powered tools - against matched global identity documents as well as liveness checks.
Introducing nCino Identity Solutions
Launched in October 2025, nCino Identity Solutions is purpose-built to power this new era in due diligence. Built on nearly two decades of tech development, nCino Identity Solutions empowers regulated organisations to meet today's regulatory requirements while building the flexible, scalable infrastructure needed to tackle tomorrow’s financial crime challenges.
nCino Identity Solutions provides the end-to-end capabilities you need to navigate regulatory transformation with confidence. Our platform enables you to verify identities efficiently, manage risk-based due diligence comprehensively, and enhance compliance cost effectively.
Don't react to regulatory change, take control. See our best-in-class solutions in action and set up your free personalised demo today.
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