Another client walks because your onboarding takes too long. Another HMRC letter arrives asking for audit trails you can’t produce in time. Another evening spent hunting through folders for documents you know exist somewhere.
Manual ID verification creates a choice between speed and compliance. Digital verification through FigsFlow eliminates that choice entirely, giving you both in under 30 seconds per client.
This isn’t about adding another tool to your stack. It’s about replacing the scattered manual processes that expose your firm to penalties while frustrating clients who expect the same speed they get from their banks.
Key Points Summarised for Busy Readers
- Digital ID verification uses electronic checks against government databases, not just visual document inspection
- MLR 2017 requires independent electronic verification, which manual processes can’t reliably deliver
- Manual verification costs firms 15-45 minutes per client in staff time alone
- FigsFlow completes electronic verification, sanctions screening, and audit trail generation in 30 seconds
- Legacy AML software rarely integrates with your proposal and engagement letter systems, creating compliance gaps
- The average firm spends £95-320 monthly across separate tools for proposals, documents, and AML checks
- FigsFlow consolidates everything from £18 monthly including electronic verification at £2.10 per check
- Switching requires no data migration; clients upload documents to secure portals immediately
- Complete audit trails generate automatically with timestamps for every compliance action
- Firms switching report 60-80% reduction in onboarding time while improving HMRC audit readiness
What Digital ID Verification Actually Means
Digital ID verification means checking your client’s identity against authoritative electronic databases rather than relying on visual inspection of documents. It’s the difference between looking at a passport photo and verifying that passport number exists in the government’s system.
MLR 2017 uses the term “electronic verification” specifically. This means using independent, reliable sources like credit reference agencies, government databases, or the electoral register to confirm the information your client provides matches official records.
Most firms think they’re compliant because they photocopy passports and driving licences. They’re not. Visual inspection proves you received a document. It doesn’t prove you verified it against any independent source.
The machine-readable zone on passports and identity cards exists precisely for this purpose. That encoded strip at the bottom contains data that electronic systems read to confirm authenticity. Documents without MRZ can’t be electronically verified, which is why provisional driving licences don’t satisfy MLR 2017.
Think You’re Verifying Correctly? Check This First.
Visual inspection, photocopies, and provisional licences all seem compliant. None of them are. See what actually satisfies MLR 2017.
The Real Cost of Manual ID Verification
Manual verification isn’t just slow. It’s expensive in ways that don’t show up on your P&L until HMRC arrives.
Time That Disappears Into Compliance
A client emails their passport scan. You save it to their folder. Three weeks later, you remember you haven’t verified it yet. You log into a separate system, manually enter the details, wait for results, save the certificate somewhere, and hope you’ve documented everything properly.
That’s 15 minutes minimum, assuming everything works first time and you don’t get interrupted. More complex cases with beneficial owners can take 45 minutes or more.
Multiply that across 20 new clients monthly. You’re spending 5-15 hours on manual verification work that could happen automatically while you sleep. At £100 per hour, that’s £500-1,500 monthly in pure opportunity cost.
The time compounds when HMRC visits. Gathering scattered documentation from emails, folders, and separate systems takes hours you don’t have. Firms report spending full days preparing for supervision visits that could have been handled in minutes with proper audit trails.
The Penalty Risk You're Carrying
ICAS’s 2025 thematic reviews found 55% of firms had misjudged their money laundering risks. The most common failure was inadequate verification procedures, specifically accepting documents without electronic verification.
Penalties for AML breaches start at £5,000 for minor failures and scale rapidly. Serious breaches can reach £50,000 or more, plus reputational damage that takes years to rebuild.
But the real risk isn’t the penalty amount. It’s discovering during an audit that verification you thought was compliant actually wasn’t. Visual inspection you believed satisfied the regulations doesn’t. Documents you accepted turn out to be unacceptable under MLR 2017.
Manual processes create documentation gaps even when you’re trying to comply. Missing timestamps, incomplete records of what databases were checked, no clear audit trail showing who did what when. These aren’t intentional violations, they’re natural consequences of managing compliance manually.
There’s a Better Way
The 15 minutes of manual work, the scattered documentation, the penalty risk, all avoidable with automated verification that completes in under 60 seconds.
Why Legacy AML Software Isn't Enough Anymore
Most AML software bolts onto your existing systems as a separate tool. You win a client in HubSpot, send proposals through one platform, manage engagement letters in another, then finally remember to conduct AML checks in a fourth system.
The gap between client acceptance and verification creates risk. You’ve established a business relationship before completing required due diligence. MLR 2017 expects verification to happen when you establish the relationship, not weeks later when someone remembers.
Legacy systems also don’t talk to each other:
- Client information lives in your CRM
- Documents live in email
- Verification certificates live in the AML tool
- Risk assessments live in spreadsheets
When HMRC asks for complete records, you’re compiling from four sources and hoping nothing’s missing.
Most AML tools give you a certificate proving verification occurred. They don’t give you timestamped records of every compliance action connected to the client record. The five-year retention requirement under MLR 2017 applies to comprehensive records, not just documents. You need to prove not just that you verified but how you verified, when you assessed risk, who approved high-risk relationships, and how you applied ongoing monitoring.
Legacy systems track verification events. They don’t track the complete compliance journey in a single, auditable record that survives staff turnover and system changes.
Software That Won’t Let You Down
We researched 30+ AML software options to find solutions that actually integrate, maintain audit trails, and meet MLR 2017 requirements. Here are the 6 that passed our tests.
Best 6 AML Software Every Accountant Needs – #6 Will Surprise You! →
What Firms Switching to FigsFlow Actually Get
FigsFlow isn’t just AML software bolted onto your existing systems. It’s a complete client onboarding platform that handles everything from proposals through compliance certification in one integrated workflow.
Electronic Verification in 30 Seconds
FigsFlow connects directly to government databases and credit reference agencies. When your client uploads their passport through the secure portal, you can conduct electronic verification immediately against authoritative sources.
The system checks the document’s machine-readable zone against official records. Results return in approximately 30 seconds with a compliance certificate showing exactly what was verified and which databases were checked.
For company clients, FigsFlow integrates with Companies House to verify incorporation details and check the PSC register automatically. Beneficial owner identification happens as part of the same workflow, not as a separate manual task you might forget.
Automated Sanctions Screening
Every verification automatically screens against PEP lists, financial sanctions lists, and adverse media databases. The system checks if your client is a politically exposed person, whether they appear on any watchlists, or if adverse media mentions indicate potential money laundering risks.
When the system identifies a potential match, it alerts you for manual review. Your decision and reasoning get recorded automatically in the audit trail.
Sanctions lists update constantly. FigsFlow pulls current data with every check, so you’re always screening against the latest information without manually updating lists or worrying about outdated databases.
Complete Audit Trails Without Manual Work
Every action in FigsFlow creates a timestamped audit trail entry automatically. Document uploads, verification checks, risk assessments, and senior management approvals all get timestamped without manual logging.
When HMRC requests evidence during supervision visits, you produce the complete client record instantly. Verification results, documents reviewed, risk assessments completed, and approvals obtained all exist in a single auditable trail.
The audit trail proves not just compliance but the quality of your compliance. It shows you applied risk-based measures appropriately and obtained required approvals for high-risk situations.
Risk Assessment That Follows HMRC Guidance
FigsFlow provides risk assessment templates customised to specific client types that follow HMRC guidance for the accountancy sector. Templates exist for property portfolios, trust and estate work, trading businesses, high-net-worth individuals, and cross-border clients.
You complete the assessment using information already gathered during onboarding and verification. The system calculates an overall risk rating based on your responses and flags when Enhanced Due Diligence triggers apply.
Templates are reusable at no extra cost. Everything stays connected to the client record rather than scattered across different systems.
Beyond AML: What FigsFlow Offers
FigsFlow is a complete client onboarding platform handling every stage of the client journey from initial proposal through ongoing compliance. It offers:
- Proposals and engagement letters in 9 clicks
- Built-in e-signature with automated workflows
- Pricing modules with consistent fee structures
- Role-based team access and permissions
- Integrations with HubSpot, Xero, QuickBooks, Stripe
It’s too much to list here. Try FigsFlow for free and see for yourself.
The Price Comparison That Changes Minds
Most firms spend £95-320 monthly across separate tools for proposals, engagement letters, document management, and AML software. FigsFlow consolidates everything from £18 monthly.
The time savings amplify the cost advantage. Reduce verification time from 15 minutes to 30 seconds per client. For 20 clients monthly, that’s nearly 5 hours of professional time reclaimed.
At £100 per hour, that’s £483 monthly in opportunity cost eliminated. The software costs £37. You’re gaining £446 monthly in productive time that can be spent on client work rather than manual compliance administration.
Here’s the best part: It’s Yours at zero cost for the next 30 days.
Try electronic verification with real clients. Test the pricing calculator with your actual service packages. Experience the pace of engagement letter generation. Verify the quality and compliance standards for yourself.
What to Do Next
Here’s your four-step action plan to move from manual verification to digital compliance:
- Review the Additional Resources below to understand MLR 2017 requirements and common compliance failures HMRC finds during supervision visits.
- Calculate your current cost: time per client × monthly clients × hourly rate, plus separate tool costs. Compare to FigsFlow’s consolidated pricing.
- Book a demo or start your 30-day free trial to test with real client scenarios.
- Choose what protects your firm while improving client experience.
Additional Resources
- Money Laundering Regulations 2017: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
- HMRC Economic Crime Supervision Handbook: Detailed guidance on supervision expectations and common compliance failures
- ID Verification Complete Guide: ID Verification in AML with FigsFlow: Complete 2025 Compliance Guide
- AML Software Complete Guide: Complete Guide to AML Software for Accountants, Bookkeepers & Tax Advisors
- Writing an AML Policy: How to Write an AML Policy for Your Firm: A Practical Guide for UK Accountants
Conclusion
Digital ID verification isn’t optional anymore. MLR 2017 requires electronic verification against independent sources, which manual processes can’t reliably deliver at scale.
The firms switching to FigsFlow aren’t chasing features. They’re eliminating the choice between client experience and regulatory compliance. They’re reclaiming hours lost to manual verification. They’re protecting themselves from penalties that result from documentation gaps rather than intentional violations.
Your competitors are already moving faster. The question isn’t whether to switch but whether you’ll switch before the next HMRC visit or after.
Ready to See Digital ID Verification in Action?
Watch FigsFlow verify clients electronically, screen sanctions automatically, and build audit trails in real time.
Frequently Asked Questions
No. You start with new clients immediately while maintaining existing records in current systems until their five-year retention period expires naturally. Historical data stays where it is without migration headaches.
Electronic verification checks documents against government databases and credit reference agencies to confirm authenticity and match official records. Visual inspection only proves you received a document, not that you verified it against independent sources as MLR 2017 requires.
FigsFlow alerts you for manual review. You assess whether the match is genuine or a false positive based on additional information. Your decision and reasoning are recorded automatically in the audit trail with timestamps.
Yes, though you lose the integration benefits. Most firms switch entirely because the consolidated workflow from proposals through verification eliminates compliance gaps and costs less than maintaining separate systems.
Approximately 30 seconds once clients upload documents to the secure portal. Electronic verification, sanctions screening, and compliance certificate generation happen automatically without manual processing time.
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