AML Checks & Compliance Software for Accountants

According to the Serious Fraud Office, there are three key tell-tale signs which accountants should look out for when trying to prevent money laundering. These are as follows:1. If a long-term client or customer behaves oddly, or makes uncharacteristic requests. 2. A client or customer asks you to make financial arrangements which don’t make sense commercially. 3. A client or customer asks you to provide services which are outside your area of expertise, and does so on multiple occasions.

There are some fifteen different supervisory bodies responsible for monitoring the AML compliance of accountants, bookkeepers and other financial advisers, but these bodies are in turn overseen by the OPBAS. These regulatory bodies include the Association of Accounting Technicians, the Association of Chartered Certified Accountants, the Financial Conduct Authority and the Institute of Financial Accountants. To see a full breakdown of the supervisory bodies for this sector, visit GOV.UK.

Yes, sole practitioners still need to ensure that they are AML compliant. The Money Laundering Regulations 2007 stated that any company OR individual that is providing accountancy services must be registered with an appropriate supervisory body, so their AML compliance can be monitored.

Serious consequences, such as hefty fines, criminal prosecutions, and reputational harm, can arise from failing to meet AML requirements. Partners and staff members of the company can occasionally be held personally accountable and a fraud or failure to comply can significantly damage the reputation of a company.

Electronic verification is widely recognised by regulators, product providers and professional bodies as probably the most reliable, secure and efficient source of information for identity solutions. Regulators need to remain impartial so don’t recognise any particular supplier.

Using EV is by far the most reliable way to carry out know your customer and know your business checks on new and existing clients. As criminals produce ever-more sophisticated fraudulent versions of documents like passports and driving licences, EV can also verify official documentation quickly and reliably.

Accountancy firms providing services within the scope of the Money Laundering Regulations need appropriate AML checks and controls. This can include accountants, bookkeepers, tax advisers, payroll providers and sole practitioners, depending on the services they provide and their supervisory arrangements.

A structured onboarding process can include collecting client or business details, completing KYC checks or KYB checks, identifying beneficial owners, screening for sanctions and PEPs, assessing risk and applying proportionate CDD or EDD before approval.

KYC checks verify individual clients, while KYB checks verify companies and relevant associated parties. For business clients, KYB can include company information, directors, ownership structures and linked beneficial owners.

Where a client is a company or other legal entity, firms should identify and verify the individuals who ultimately own or control it where required. UBO checks can support this by reviewing ownership structures, PSCs, directors and connected individuals.

Customer Due Diligence establishes and verifies the client and supports the assessment of financial-crime risk. Enhanced Due Diligence involves additional checks where the client, ownership structure, geography, funding, activity or screening results indicate higher risk.

Sole practitioners carrying out regulated accountancy services still need appropriate AML controls. Their procedures should be proportionate to the size and nature of the business, but relevant obligations around risk assessment, CDD, monitoring, record-keeping and suspicious activity still apply.

Unusual transactions, unexplained ownership or funding, inconsistent client behaviour or activity without a clear commercial rationale may require further investigation. Firms should follow their internal escalation process, document the evidence and decisions, and make a suspicious activity report where appropriate.

Client risk should continue to be reviewed after onboarding. Changes to ownership, directors, services, expected activity, sanctions or PEP status, adverse media, or other risk factors can trigger further due diligence and ongoing monitoring.

A clear AML audit trail can include identity and business evidence, ownership information, risk assessments, screening alerts, analyst notes, referrals, approvals, compliance certificates, and review history. These records help demonstrate how the firm applied its AML policies and decisions.

Yes. AML checks can be connected with existing practice-management and client workflows through integrations and APIs, helping firms initiate checks, retrieve results, manage alerts, and retain compliance information more efficiently.