ECCTA: How to comply with the new AML regulations
Money laundering has a new foe – and regulated industries need to get familiar with it.
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) sets out a new approach to AML, and its measures are beginning to take effect.
With £10 billion laundered annually through real estate transactions (according to the National Crime Agency), ECCTA is designed to improve transparency around property ownership, particularly targeting overseas entities.
Legal professionals, particularly those working within property and conveyancing, need to stay on top of the new rules as they emerge.
What is ECCTA?
ECCTA introduces several new legal guidelines designed to introduce more transparency to the UK real estate sector:
- Enhanced trust disclosure under the ROE regime
From 31 August 2025, Companies House has begun accepting public applications for disclosure of trust-related information – including beneficiaries and settlors – linked to the ownership structure of overseas entities. The reform aims to close longstanding loopholes in hidden ownership structures, particularly where nominee or trust-based arrangements have masked beneficial ownership in UK property. - Mandatory identity verification
All directors, persons with significant control (PSCs), and those submitting filings to Companies House must complete identity verification. Mandatory compliance begins in Autumn 2025. - Corporate “failure to prevent fraud” offence
Effective as of 1 September 2025, large organisations may be held criminally liable if they fail to prevent fraud by associated parties unless reasonable procedures were put in place.
Firms that fail to comply with these new rules face potential legal and financial penalties. The onus is therefore on legal professionals to help firms remain compliant, through embedded due diligence and smart compliance platforms.
How to comply with ECCTA
ECCTA is a significant shift. For the legal profession, particularly when dealing with real estate and conveyancing law, it represents an important new area of due diligence.
Most importantly, ECCTA is designed to provide more transparency to the often opaque and under-regulated world of overseas property investment. As reports consistently highlight, money laundering is rife in the UK real estate sector, and much of this originates in overseas investments.
To remain compliant and contribute towards the elimination of money laundering in the sector, firms need to adopt the right technology for the job.
Checkboard helps firms adapt to changing regulations. By automating AML, KYC, identity, address, and source of funds checks, firms can conduct rigorous ongoing monitoring at the touch of a button. It highlights areas of risk as they emerge, so firms can detect red flags in every transaction and every client relationship.
In doing so, it provides firms with a clear audit trail for fast, accurate regulatory compliance. It’s a smarter, more efficient approach to onboarding and ongoing monitoring that applies to any new regulatory regime.
A version of this article was originally published on Legal Futures.
