Your competitor down the street just onboarded three clients during their morning coffee.
They verified IDs in seconds, screened sanctions lists in real time, and completed full MLR 2017 compliance before the discovery call ended. Meanwhile, you’re still chasing passport copies via email and manually checking sanction databases with CTRL+F.
You’re not just slower. You’re at risk.
Manual compliance creates audit trail gaps, delays client onboarding, and makes growth impossible. Every hour you spend on compliance paperwork is an hour your RegTech-equipped competitor spends on billable work.
This Guide explains what RegTech is, how AI-powered platforms are transforming AML compliance for UK accountants, and how you can leapfrog competitors still trapped in manual processes.
Key Points Summarised
- RegTech uses artificial intelligence and machine learning to automate regulatory compliance processes that traditionally required manual intervention
- Manual AML compliance costs UK accounting firms an average of 6 hours weekly in administrative overhead, without guaranteed HMRC audit readiness
- Electronic verification against government databases is mandatory under MLR 2017, not optional, making manual document inspection insufficient
- Effective RegTech solutions integrate client onboarding, identity verification, PEP screening, risk assessment, and audit trails in unified workflows
- Cost structures have evolved from enterprise-only pricing to accessible models starting at £18 monthly for small and medium accounting practices
- Implementation timelines range from immediate activation for cloud-based platforms to 2-3 weeks for firms transitioning from completely manual processes
- Audit trail automation eliminates the compliance gap between having documents and proving you verified them according to regulatory standards
What Is RegTech?
Regulatory Technology, known as RegTech, represents the convergence of compliance requirements and automation capabilities. It uses cloud computing, big data analytics, and machine learning algorithms to help regulated businesses meet their legal obligations efficiently.
The term “RegTech” emerged after the 2008 financial crisis when regulatory requirements expanded dramatically across the financial services sector. Traditional compliance approaches couldn’t scale to handle the volume and complexity of new obligations.
For UK accountants, RegTech specifically addresses Money Laundering Regulations 2017 obligations:
- Customer Due Diligence
- beneficial ownership identification
- PEP screening
- sanctions checking
- ongoing monitoring
The Technology has evolved from simple database lookups to sophisticated AI systems. Modern platforms analyse unstructured data like company incorporation documents, cross-reference multiple databases simultaneously, and generate timestamped audit trails automatically.
CDD vs EDD: What’s the Difference?
Learn what Customer Due Diligence and Enhanced Due Diligence actually mean for UK bookkeepers.
The Real Cost of Manual AML Compliance
You think manual AML compliance costs you 6 hours weekly. Maybe £6,500 annually in staff time if you’re tracking it properly.
That’s what shows up on your timesheets. Here’s what actually happens when a new client signs your engagement letter:
The Real Timeline of Manual Onboarding
- Monday 10:15 AM – You email requesting passport, proof of address, and company documents.
[Staff time: 15 minutes | Cost: £12.50] - Tuesday 2:30 PM – Client replies. The passport photo is blurry. You email back asking for a clearer copy.
[Staff time: 10 minutes | Cost: £8.33] - Wednesday – Nothing. You send a follow-up.
[Staff time: 5 minutes | Cost: £4.17] - Thursday, 11 AM – New documents arrive. You download them, check the passport number manually on a government website, search three different PEP databases, and fill out your risk assessment spreadsheet.
[Staff time: 90 minutes | Cost: £75] - Thursday, 3 PM – You realise this is a property development company. Enhanced Due Diligence required. You need partner approval, but she’s in client meetings all afternoon.
[Staff time: 20 minutes preparing approval request | Cost: £16.67] - Friday morning – Partner reviews your documentation and approves. You file everything in the shared drive folder labelled “2025 Clients New.”
[Partner time: 15 minutes (£37.50) | Your time: 10 minutes filing (£8.33)]
Total direct Cost per client: £162.50
Time elapsed: Five days
Revenue delay: One week minimum
Meanwhile, your competitor is using RegTech.
Client signed on Monday at 10 AM. AI verified documents, screened databases, generated risk assessment, flagged Enhanced Due Diligence, and created an audit trail by 10:03 AM. Partner approved via mobile notification.
Platform cost: £2.50 | Staff time: 3 minutes | Revenue delay: Zero
That’s not efficiency. That’s a different business model entirely.
Multiply £162.50 by 40 new clients annually. You’re spending £6,500 on compliance administration that your RegTech competitor handles for £100 total.
The Compliance Failure Nobody Sees Coming
Six months later, HMRC requests your CDD records for that client. You know you did the checks. You remember doing them. But now you need to prove it.
- Where’s the evidence that you verified the passport electronically?
- The timestamp shows you checked sanctions lists before providing services?
- The documentation of why you classified this as high-risk?
It exists. Somewhere. Across seventeen email threads, three folders, and that spreadsheet someone renamed last month.
Reconstructing records for HMRC: 3 hours per client, £150
Discovering you can’t prove the verification sequence: Potential regulatory breach
Manual compliance doesn’t just waste time. It creates evidence gaps that look like compliance failures during supervision visits.
How AI & RegTech Solve the Core Problems
Manual compliance fails because humans can’t scale systematic processes across dozens of clients simultaneously. We forget steps. We apply criteria inconsistently. We can’t monitor changing circumstances in real-time. We create evidence gaps without realising it.
AI-powered RegTech doesn’t just digitise manual processes. It eliminates the fundamental limitations that make manual compliance unreliable at scale.
The Technology doesn’t replace professional judgment. It handles repeatable verification tasks so you can focus on what actually requires expertise: interpreting results, assessing unusual circumstances, and making risk-based decisions about client relationships.
What to Look for in a RegTech Solution
Not all RegTech platforms are created equal. Some were built for US regulations and poorly adapted for UK requirements. Others are just cloud storage with a compliance label.
The difference between effective RegTech and expensive paperwork comes down to what the platform actually does versus what it claims to do. Use this checklist to compare solutions:
RegTech Platform Comparison Checklist
No platform checks every box perfectly. But if you’re evaluating solutions that score below 9 out of 12, you’re looking at digitised paperwork, not genuine RegTech. Go for the one that checks most boxes and solves your biggest compliance pain points first.
Introducing FigsFlow: RegTech That Checks 12 Boxes
FigsFlow was built by accountants frustrated with compliance software designed for banks and awkwardly adapted for accounting practices. It’s purpose-built for UK accountants who need MLR 2017 compliance without enterprise complexity or enterprise pricing.
What FigsFlow Actually Does:
- Complete Workflow Integration – Proposals, engagement letters, e-signatures, AML verification, and ongoing monitoring in one platform (no switching between systems)
- 30-second Identity Verification – Electronic verification against government databases, not 45-minute manual checks
- Automatic Compliance Triggers – Client signs engagement letter, CDD workflows start automatically
- Real-Time Screening – PEP lists, sanctions databases, and Companies House data through unified APIs
- Sector-Specific Risk Templates – Property portfolios, trusts, high-net-worth clients following HMRC guidance
- Auto-Generated Audit Trails – Every check is timestamped and documented permanently
- Accessible Pricing – Base platform £8/month, AML compliance from £2.10 per check
FigsFlow doesn’t just check boxes on the evaluation list. It solves the fundamental problems that make manual compliance unreliable: scattered documentation, inconsistent processes, evidence gaps, and time you can’t afford to waste.
Getting Started: Your First Steps
The first step isn’t implementing new software. It’s seeing what manual compliance is actually costing you.
Book a demo with a leading RegTech solution. Watch 30-second identity verification versus your 45-minute manual checks. Compare automated PEP screening to CTRL+F searches. See auto-generated audit trails versus reconstructing records from email fragments.
During the demo, calculate your real costs: staff time chasing documents, qualified accountant hours on admin work, and revenue delays from slow onboarding. The comparison makes the decision obvious.
Ready to Take Your First Step?
Book a FigsFlow demo. See complete client onboarding from proposal to MLR 2017 compliance before your coffee ends.
Additional Resources
- Economic Crime Supervision Handbook: Economic Crime Supervision Handbook – HMRC internal manual – GOV.UK
- Verify Client Identity for AML Compliance: Verify Client Identity in AML: Step‑by‑Step Guide | FigsFlow
- Complete Guide to ID Verification in FigsFlow: ID Verification & AML: 2025 Guide | FigsFlow
- 2025 Guide to AML & ID Verification Rules for Accountants: 2025 Anti-Money Laundering ID Check Guide for Accountants in the UK – FigsFlow
- AML Compliance: A Comprehensive Guide for Professional Services: Complete Guide to AML Compliance for Professional Services
Conclusion
Manual compliance breaks down at scale. What works for 20 clients fails at 100.
The question isn’t whether to adopt RegTech, but when. Every month you delay wastes accountant time on tasks that Technology handles better. HMRC supervision keeps tightening. Penalties for poor audit trails dwarf software costs.
Your competitors are already faster. Lead the transition or scramble to catch up later.
Start Your Free Trial Today
Test FigsFlow for 30 days. No payment details. No obligation.
Verify 30-second verification. Test real scenarios. See actual time savings.
Frequently Asked Questions
AI powers document verification by detecting forged security features invisible to humans, automates PEP and sanctions screening across multiple databases simultaneously, applies consistent risk assessment criteria to every client, and identifies patterns in transactions that manual reviews would miss. It handles the repetitive verification work so accountants can focus on judgment-based decisions.
Banks, financial institutions, accountancy firms, legal practices, estate agents, crypto exchanges, payment processors, and any business regulated under anti-money laundering laws. In the UK, that includes over 30,000 accountants supervised by HMRC under MLR 2017. Small practices benefit most because they lack dedicated compliance teams.
FinTech focuses on customer-facing financial services like payments, lending, and investing. RegTech focuses on regulatory compliance and risk management for regulated businesses. FinTech helps customers transfer money faster. RegTech helps businesses prove those transfers comply with anti-money laundering regulations.
RegTech helps regulated businesses meet compliance obligations efficiently. SupTech (Supervisory Technology) helps regulators like HMRC and the FCA monitor compliance across thousands of firms. RegTech is for you to manage your AML compliance. SupTech is what HMRC uses to supervise you.
FigsFlow. It’s the only platform built by UK accountants specifically for MLR 2017 compliance, integrating client onboarding and AML verification in unified workflows. Starting at £18 monthly, it’s designed for small practices, not enterprises. Other solutions exist but require combining multiple tools or paying enterprise pricing to achieve what FigsFlow delivers as standard.
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