In an era of evolving regulation and global scrutiny, transparency around ownership is receiving increasing significance. By July 2027, the EU’s new Anti-Money Laundering Regulation (AMLR) will shift how businesses across Europe identify and verify their ultimate beneficial owners (UBOs). At the same time, the UK is pushing forward with its own reforms under the Economic Crime and Corporate Transparency Act (ECCTA).
For UK firms, especially those operating across borders, due diligence will get tougher and the stakes for getting it wrong will be raised.
What’s changing in UBO Rules?
The EU’s AMLR introduces a series of reforms that bring ownership transparency to a new level. The UK’s ECCTA heads in a similar direction, though with a slightly different focus.
The bottom line is the 25% rule stays but the maths gets tougher.
Both regimes still use the same baseline that anyone who owns or controls 25% or more of a company counts as a beneficial owner. But the EU is tightening how this is calculated. Companies will need to trace through ownership chains, multiply percentages across layers of entities and add them up. Hidden control through complex corporate structures will be harder to disguise. The UK’s “People with Significant Control” (PSC) regime is keeping its current approach for now.
The big change? High-risk sectors could face tougher thresholds.
In areas of heightened money laundering or terrorist financing risk, the EU may lower the bar to 15% ownership or control. The UK isn’t planning to follow suit. Instead, its reforms focus on enforcing accuracy in company registers and cracking down on false or incomplete filings.
Another change is that verification will be far stricter.
The EU is raising the bar on verification. Registers must be accurate, up to date and cross-checked with reliable sources. Supervisors will have sharper powers to investigate. In the UK, new rules under ECCTA mean directors, PSCs and company creators must pass identity checks. Companies House can now reject filings, query suspicious data and demand evidence from authorised service providers.
The very bottom line? More businesses will be caught.
The AMLR expands the scope of who must comply, pulling more non-financial firms, especially those involved in high-value transactions, into the AML framework. The UK has already widened its net with the PSC register, the Register of Overseas Entities and new oversight of limited partnerships. ECCTA gives Companies House even more power to enforce these obligations.
What does this mean for businesses?
Due diligence just got harder. Companies will need to dig deeper into ownership structures, verify more data, and keep much tighter records. For UK firms, especially those operating in or alongside the EU, the bar is rising on both sides. These changes will demand more time, more resources, and more rigour but they’ll also close loopholes and reduce the risk of being caught up in opaque or high-risk business relationships.
What this means for due diligence
For businesses, these changes aren’t just technical tweaks. They fundamentally shift how due diligence needs to be done.
- Tracing ownership will be more demanding. Complex structures must be unpacked, with ownership percentages calculated through every layer. What used to be overlooked could now make someone a UBO.
- Registers must be clean and credible. Regulators want more than a name on the page. They want evidence that your records are accurate and current.
- Verification will need more rigour. Expect more ID checks, more cross-referencing, and better audit trails.
- The compliance net is widening. Non-financial firms in the EU, and UK businesses dealing with them, will face obligations that once only applied to banks or law firms.
- UK firms face a double challenge. Operating across borders means meeting both the UK’s enforcement-driven approach and the EU’s stricter calculation and verification rules.
Due diligence will essentially demand more effort but the payoff is reduced exposure to risky partners and smoother transactions in a more transparent business environment.
The cost of getting it wrong
The UK and EU are both backing up these new standards with real consequences.
In the UK, Companies House finally has teeth. From now on, inaccurate or misleading filings can mean financial penalties of up to £10K, imposed directly by Companies House. More serious offences, like knowingly submitting false information or failing to maintain PSC records, can carry criminal penalties, including prison time.
Larger organisations also need to watch out for the new “failure to prevent fraud” offence, taking effect in 2025. If someone inside your business commits fraud and you haven’t put “reasonable prevention measures” in place, your company could face unlimited fines.
In the EU, enforcement will get tougher too. With the creation of the new EU Anti-Money Laundering Authority (AMLA), enforcement will be more consistent and more aggressive across Member States. Firms can expect heavier fines for late, incomplete, or misleading filings, and sanctions for weak verification or poor due diligence.
But it’s not just about the money. Reputational damage is often worse. Being flagged for non-compliance can delay deals, erode investor confidence, and make banks or partners hesitant to do business with you.
Preparing for 2027: What businesses should do now
The direction is clear that transparency is becoming a baseline expectation. Businesses that prepare now will be in a far stronger position when the new rules come into force.
Here’s where to start:
- Map your ownership structures. This means go beyond the first layer and identify who really controls your entities.
- Audit your registers. Make sure PSC and UBO records are accurate and current, especially if you operate in the EU.
- Upgrade verification processes. Build in stronger ID checks, cross-verify data, and keep detailed audit trails.
- Train your teams. Ensure staff across compliance, legal and finance know how to spot indirect ownership and meet the new standards.
- Stay ahead of changes. Remember, the EU will review thresholds again by 2030, and the UK continues to refine its own framework.
Those who act early won’t just avoid fines. They’ll build credibility with investors, lenders, and partners. In today’s business environment, transparency doesn’t have to be only about compliance. It can be a competitive advantage.
Don’t miss our guide to AMLA: The EU’s anti-money laundering authority. It explains everything you need to know about AMLA, from why it was created to what it means for businesses operating in the EU and the UK. Get it here.
