You might be signing up with an accountant and have noticed part of the process involves AML checks.
(If you’re here, reading this, we hope that means it’s us you’re signing up with! 🤞🏻😉)
I know this isn’t the most exciting of topics, but it’s actually a crucial part of our process for both new and existing clients.
So, let me explain what AML checks are and why we need to carry them out.
What Is AML?
Anti-Money Laundering (AML) is all about preventing criminals from hiding the origins of their illegally obtained money—often called “dirty money.” Money laundering is the process of making this dirty money appear “clean” by moving it through legitimate businesses or accounts to hide where it really came from.
AML laws and regulations require businesses like banks, accountants, and other financial institutions to verify where money comes from and ensure it’s not linked to criminal activities such as fraud, drug trafficking, or terrorism. This involves checking customers, tracking transactions, and reporting any suspicious activity to the authorities.
For us as accountants, conducting AML checks means gathering proof of a client’s identity, understanding the source of their funds, and ensuring everything is transparent and legal. It’s a key part of protecting both our clients and our own business from unintentionally being involved in illegal activity, while also complying with UK legal requirements.
Who Needs an AML Check?
New Clients
Whenever someone new joins us as a client, we need to run basic checks to confirm their identity and where their funds are coming from. This applies to everyone—whether you’re a sole trader, running a small business, or a larger company.
Existing Clients
Even if we’ve worked together for years, we still need to make sure everything stays up to date. We’re required to refresh our records every three years. We may need to complete this sooner than three years if there are any major changes in your business, like how you’re making money, new investments, or changes in the structure of your business.
Company Directors, Shareholders & Beneficial Owners
We also need to check all of the directors and anyone who owns more than 25% of the shares in the business. This helps us ensure that the people in charge are doing things by the book.
For businesses with a more complex structure, we’ll dig a little deeper and check the beneficial owners—the people who actually control or benefit from the company, even if they’re behind the scenes. We need to know who’s really pulling the strings!
What Do the Checks Involve?
Our AML checks consist of three parts:
1. Biometric Scanning Check
This is done via an app by a third party called Thirfort. You’ll receive an SMS from us with a link. Follow the steps in the app to scan your face and passport, and that’s your part done! ✅
2. Know Your Client Report
This is our internal process where we take your biometric scan, review it to make sure everything matches up (and you are who you say you are). We then build out a report covering what your business does, which industries you work in, how you make your money, and where you operate from.
3. Risk Assessment
Once we know who you are and how you work, we create a risk assessment to identify any potential risks and how we would manage them.
Why Do We Charge for This?
If you’ve made it this far, I’m sure you can appreciate that it’s a detailed, time-consuming process. Not only does the software we use to carry out these checks cost money, but it also takes time, knowledge, and skill from our team. On top of that, we invest in ongoing annual training to ensure we stay compliant with the regulations, protecting both us and our clients.
We believe in fair and transparent pricing, so we list out the costs on our proposals so you can see exactly what we’re charging for and why, rather than lumping fees together.
What’s Next?
I hope this has cleared up any questions you had, but if there’s anything else you’d like to know, feel free to reach out!
If you’re ready to sign your proposal, hit the ‘Approve’ button, and we’ll be in touch with the next steps.
If you’d like to explore working with us, complete our Quick Questionnaire, and we’ll get in touch to book your discovery call.
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