Your clients expect better than photocopied passports.
They bank on their phones. They verify their identity for mortgages in minutes. Then they come to you and you’re asking them to print documents, sign forms, and post them back like it’s 1995.
Meanwhile, the firm down the street onboards clients in under ten minutes. No printing. No posting. No friction. Digital ID verification through secure portals that connect directly to government databases. Sanctions screening that happens in real time. Compliance that builds itself while you focus on actual accounting work.
The gap between what clients experience everywhere else and what traditional accounting firms offer is widening. This guide explains how digital ID verification works, why manual processes lose you clients, and how FigsFlow brings your practice into 2025.
Key Points Summarised for Busy Readers
- Digital ID verification uses electronic checks against authoritative databases, not visual document inspection alone
- Manual verification costs firms 15-45 minutes per client in staff time, plus penalty exposure from documentation gaps
- Legacy AML software operates separately from client onboarding, creating delays and scattered records
- FigsFlow completes electronic verification, sanctions screening, and audit trail generation in 30 seconds per client
- Integrated systems eliminate the gap between client acceptance and verification, which creates regulatory breach
- Complete audit trails are generated automatically with timestamps for every compliance action
Why Manual ID Verification Can't Survive 2025
Manual verification worked when practices had ten clients and supervision visits happened rarely. Neither condition exists anymore.
Your practice onboards clients faster now than five years ago. Client expectations changed. They compare your onboarding speed to their banking apps, not to other accounting firms.
The regulatory environment tightened simultaneously. ICAS’s 2025 thematic reviews found that 55% of firms had inadequate verification procedures. HMRC supervision visits increased in frequency and depth.
Manual processes cannot scale while maintaining compliance quality.
Each new client requires 15-45 minutes of verification work. Documents arrive via email, get saved to folders, require manual data entry into verification systems, and need someone to remember to complete checks before establishing the relationship.
That someone often forgets. Or gets busy. Or assumes someone else handled it.
The gap between client acceptance and verification creates a regulatory breach regardless of whether verification eventually happens. MLR 2017 expects verification when you establish the business relationship, not weeks later when staff remember outstanding checks.
Additionally, manual systems fail supervision in three different ways:
- Documentation gaps emerge naturally from manual processes. You verified the client correctly, but cannot prove which databases you checked, when you conducted verification, or who approved high-risk relationships. Missing timestamps doom supervision visits even when underlying compliance was adequate
- Penalty risk compounds over time. Each inadequately documented client represents potential exposure. Small gaps multiply across dozens or hundreds of clients until your entire practice carries unquantified regulatory risk
- Evidence assembly takes hours. When HMRC requests your AML records, you’re pulling files from multiple systems, reconstructing timelines from email threads, and hoping you haven’t missed anything critical
The firms that will survive in 2025 were automated years ago. Manual verification is already obsolete. The question is whether you’ll recognise this before or after your next HMRC visit.
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Read: Digital ID Verification for AML: Why Firms Are Switching to FigsFlow →
What Digital ID Verification Actually Means in Modern AML
Digital ID verification means checking client information against authoritative electronic databases rather than visually inspecting documents. It’s the difference between looking at a passport photo and verifying that the passport number exists in government systems.
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 information matches official records.
Most firms think photocopying passports satisfies requirements. It doesn’t.
Visual inspection proves you received a document, not that you verified it. Checking a passport photo resembles the client isn’t electronic verification. Deciding a document looks genuine isn’t electronic verification.
Only checking information against independent systems that have already verified it satisfies the requirement. This is why provisional driving licences fail. They lack the machine-readable zone, abbreviated as MRZ, that electronic systems read to confirm authenticity.
Master Digital Verification Requirements
Get the complete guide to MLR 2017 electronic verification standards, acceptable documents, and common mistakes that trigger penalties.
Read: ID Verification in AML with FigsFlow: Complete 2025 Compliance Guide →
The Three Problems Legacy AML Software Can't Solve
Legacy AML software looked adequate five years ago. They verified identities, checked sanctions lists, and produced certificates. But they were built for a simpler regulatory environment and smaller practices.
The problems aren’t obvious until supervision visits expose them. Then you realise the gaps were always there, hidden behind software that claimed to solve compliance but actually just created new administrative burdens.
Problem #1: Disconnection From Client Onboarding
Legacy AML systems bolt onto your existing workflows as separate tools. You win clients 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 a regulatory breach. You’ve established a business relationship before completing required due diligence because nobody owns the handoff between systems.
Client information lives in your CRM. Documents live in email. Verification certificates live in the AML tool. Risk assessments live in spreadsheets. When HMRC requests complete records, you’re compiling from four sources and hoping nothing’s missing.
Integration promises don’t solve the fundamental problem. Two separate systems connected via API still require manual intervention to trigger workflows. Someone must remember to initiate verification after client acceptance.
Problem #2: Incomplete Audit Trails
Legacy systems provide verification certificates showing checks occurred. They don’t provide complete audit trails connecting verification to the client relationship, risk assessment, and ongoing monitoring.
A certificate proves you verified identity on a specific date. It doesn’t prove you assessed risk appropriately, obtained senior management approval for high-risk relationships, or applied enhanced due diligence measures when required.
MLR 2017’s five-year retention requirement applies to comprehensive records, not just documents. You need timestamped evidence of every compliance action showing who did what when. Most legacy systems track verification events without tracking the complete compliance journey.
Staff turnover eliminates institutional knowledge about why certain decisions were made. System changes risk losing historical records. The audit trail must survive these changes while proving your firm applied risk-based measures appropriately throughout the relationship.
Problem #3: No Integration with Service Delivery
AML compliance isn’t separate from client service. It’s part of the onboarding experience that shapes client perception of your practice.
Legacy systems treat compliance as back-office administration disconnected from revenue-generating activities. Clients accept engagement letters, then wait while you conduct separate verification processes they don’t understand.
Modern clients expect seamless onboarding matching their banking experience. They don’t distinguish between “accepting our proposal” and “completing AML checks.” They see one process that either works smoothly or doesn’t.
Separate systems cannot deliver integrated experiences. The handoffs create delays and friction that cost you clients who choose faster competitors. Your AML system should enhance service delivery, not obstruct it. Verification should happen invisibly as part of accepting engagement letters, not as a separate hurdle clients must clear after already committing.
Don’t Settle for Software That Creates More Problems Than It Solves
We researched 30+ AML software options to find the ones that actually integrate with your workflow instead of disrupting it.
Read: Best 6 AML Software Every Accountant Needs – #Last Will Surprise You!
How FigsFlow Is Redefining Digital ID Verification
FigsFlow isn’t AML software bolted onto existing systems. It’s a complete client onboarding platform where compliance integrates seamlessly from proposal through service delivery.
Verification at the Point of Acceptance
Clients accept engagement letters through FigsFlow’s e-signature system. The moment they sign, the AML workflow triggers automatically, prompting you to complete verification without switching systems or losing context.
No gap exists between relationship establishment and verification because the workflow guides you through compliance steps immediately after client acceptance. Documents upload to secure portals with client-specific requirements. Individuals see requests for passports and address proof. Companies see requests for incorporation documents and beneficial owner details.
30-Second Electronic Verification
FigsFlow connects directly to government databases and credit reference agencies for electronic ID verification. Upload a passport scan and verification completes in approximately 30 seconds against authoritative sources.
Simultaneously, the system runs PEP and sanctions screening, checking clients against global watchlists in real time. The system checks the MRZ against official records, returns compliance certificates showing exactly what was verified and which databases were checked, and timestamps every check automatically.
For company clients, FigsFlow integrates with Companies House to verify incorporation details and check the PSC register. Beneficial owner identification happens as part of the same workflow.
Automatic Audit Trail Generation
Every action creates timestamped audit trail entries automatically. Document uploads, verification checks, risk assessments, and senior management approvals all get recorded as they occur.
When HMRC requests evidence during supervision visits, you produce complete client records instantly. Verification results, documents reviewed, risk assessments completed, and approvals obtained exist in a single auditable trail.
Risk-Based Compliance Without Manual Work
FigsFlow provides risk assessment templates customised to specific client types following HMRC guidance for the accountancy sector. After reviewing PEP screening results and ID verification outcomes, you complete the risk assessment using information already gathered during onboarding.
The system guides you through the assessment process, calculates overall risk ratings based on your responses, and flags when Enhanced Due Diligence triggers apply. High-risk cases can be routed to designated senior managers for approval, keeping compliance decisions documented within the same platform.
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Beyond Verification: What Makes FigsFlow Different
FigsFlow handles everything from initial proposal through ongoing compliance in one integrated platform. AML verification is just one capability within a complete client onboarding system.
- Proposal Management: Professional proposals in nine clicks with customisable templates and pricing calculators
- Engagement Letters: Regulatory-compliant templates with built-in e-signature and automated reminders
- Team Management: Role-based access control so everyone sees exactly what they need
- Integration Hub: Connects with HubSpot, Xero, QuickBooks, Stripe, Companies House, Outlook, and Google
Pricing starts at £18 monthly including the base platform and AML module. Per-verification charges are £2.10 each.
Explore FigsFlow’s Complete Platform
See how proposals, engagement letters, pricing, AML compliance, and team management work together in one system built for modern accounting firms.
What to Do Next
The firms that win in 2025 made the switch before supervision visits forced their hand.
- Audit Your Current Process: Review your ID verification workflow against MLR 2017 requirements. Identify where manual steps create delays or documentation gaps.
- Calculate Real Costs: Time per client × monthly volume × hourly rate equals opportunity cost. Add separate tool subscriptions. Compare to FigsFlow’s consolidated pricing.
- Test With Real Clients: Start your 30-day free trial. Upload real documents, complete risk assessments, and generate audit trails.
Your competitors automated years ago. The choice is whether you’ll automate before your next HMRC visit or after.
Explore FigsFlow’s Complete Platform
See how proposals, engagement letters, pricing, AML compliance, and team management work together in one system.
Additional Resources
- Money Laundering Regulations 2017: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
- How to Verify Client Identity for AML Compliance: Step-by-step guide with FigsFlow’s automated verification process
- Complete AML Software Guide: Comprehensive comparison of AML software for UK accounting practices
- HMRC Economic Crime Supervision Handbook: Detailed guidance on supervision expectations and compliance failures
- How to Write an AML Policy: Practical guide for creating compliant AML policies that actually work
Conclusion
Digital ID verification is the standard for 2025. Manual processes cannot deliver the speed clients expect while maintaining the compliance quality HMRC requires.
FigsFlow completes verification in 30 seconds, generates complete audit trails automatically, and integrates seamlessly with proposals and engagement letters. Everything happens in one system without manual handoffs between tools.
Manual verification already died. You’re just deciding whether to acknowledge this before or after your next supervision visit.
See the Future of AML Compliance
Frequently Asked Questions
Digital verification checks client information against authoritative electronic databases like government records or credit reference agencies. Scanning documents only creates electronic copies without verifying information against independent sources. MLR 2017 requires actual electronic verification, not just digital storage of documents.
Yes. FigsFlow verifies foreign passports and identity documents through international database connections. The system checks machine-readable zones on foreign documents and screens against global sanctions lists and PEP databases automatically.
You retain complete access to all historical records and audit trails. FigsFlow provides data export options, ensuring you maintain MLR 2017’s five-year retention requirements even after cancellation. Your compliance documentation remains yours permanently.
No. FigsFlow integrates with HubSpot and other CRMs rather than replacing them. Won deals import automatically to trigger verification workflows. Client information syncs bidirectionally, so both systems stay current without manual updates.
Most firms complete setup within 1-2 hours. Template customisation, team permission configuration, and integration connections happen quickly. You can verify your first client the same day you sign up.
