New AML rules are here, and if you are not careful, they can put a big strain on your practice’s finances.
The 2025 AML rules require every firm to carry out customer due diligence, keep detailed records, monitor and report suspicious activity to the National Crime Agency, and have clear risk assessment procedures and policies in place.
But here’s the thing: most firms are on a tight budget and lack a compliance officer or a dedicated onboarding team. Or worse, they cannot even afford one. Time is short, budgets are tight, and these AML rules are not getting any simpler.
So, is this the dead end for smaller practices, or is there a way to stay compliant without breaking the bank?
This guide breaks down what’s changed, what you need to know, and how you can stay compliant without blowing your budget.
What is New Under the 2025 AML Regime?
The Economic Crime and Corporate Transparency Act (ECCTA) has introduced new identity verification requirements and tighter controls on company filings. These changes are aimed at improving transparency and preventing misuse of UK companies.
Here are some key changes that you need to be aware of:
- All new and existing company directors will be required to complete identity verification
- Statutory filings with Companies House can be done only via registered ACSPs or verified individuals
- You will need to register as an Authorised Corporate Service Provider (ACSP) if you help clients file documents or verify their identity
- AML supervisors, including HMRC, have increased their supervision and now expect more from firms, regardless of their size
- Train staff regularly on AML risks and procedures
Additionally, firms are expected to conduct stricter Know Your Customer (KYC) checks, carry out ongoing monitoring, and file Suspicious Activity Reports (SARs) when necessary.
The Minimum AML Setup Every Small Firm Needs
Every firm, including sole practitioners, must have a few core AML setups in place. Failing to meet them can result in penalties, regulatory action, reputational damage, or worse, criminal liability in serious cases.
Here’s what you need as a bare minimum:
- A written AML risk assessment that reflects the nature of your services, types of clients, and potential exposure to money laundering risks
- A Customer Due Diligence (CDD) checklist for onboarding new clients
- A secure and organised record-keeping system (digital or physical) to store documents securely for at least five years
- Basic knowledge on how to spot red flags and file a Suspicious Activity Report (SAR)
- A nominated Money Laundering Reporting Officer (MLRO), who can be the director in small firms
- A clear and well-documented process for ongoing monitoring of existing clients
- Documented AML training for yourself and any staff
If you get these requirements right, you’re already ahead of many small firms that assume AML doesn’t apply to them.
Budget-Friendly Tools to Stay Compliant (Without Hiring a Team)
There are now dozens of AML tools in the market that simplify compliance at a cost that is manageable for most small firms. Many start from as little as £10 to £30 per month and offer custom pricing and features based on the firm’s needs.
Most platforms offer the basic features such as:
- Templates for AML risk assessments and customer due diligence (CDD)
- Identity verification checks
- Secure document storage and audit trails
- Pre-filled Suspicious Activity Report (SAR) forms
These tools help reduce human error, save admin time, and provide a digital paper trail, which is particularly important in the event of an HMRC audit.
You don’t need to commit right away. Most providers offer free trials or entry-level packages suitable for solo practitioners. The trick is to pick tools that fit your actual risk exposure and client base, and avoid the complex systems designed for large firms.
How to Train Your Team Without Spending a Fortune
AML training doesn’t need to be expensive. You just need to make sure it happens and is documented.
Here are some reliable starting points:
- HMRC’s AML Training Resources: Free guidance and examples
- ACCA AML Courses: CPD-approved options for members
- ICAEW AML Hub: Practical guidance and training tips
- YouTube: Search for “UK AML training 2025” for plenty of short, digestible videos
- Use Google Forms to create simple quizzes and test understanding
AML training must be updated regularly and properly documented. You are required to keep a record of who received the training, when it took place, and the topics covered. This applies even if you are a sole practitioner.
Outsource Smartly (When It Saves You Money)
Outsourcing can be a practical way to reduce workload and manage costs, especially for labour-intensive processes such as identity checks, document management, and client onboarding.
However, outsourcing only works well if the service provider understands UK compliance standards and handles data responsibly.
If you are thinking of outsourcing, consider the following points.
- Hire qualified freelancers for administrative tasks such as data entry or client onboarding support, but make sure they are familiar with UK AML requirements
- Explore white-label AML services that may offer bundled ID verification, risk assessments, and client onboarding processes. In most cases, it can be more cost-effective than purchasing full AML software packages
- Choose UK-based or UK-compliant providers. It ensures that they follow GDPR standards and use approved methods for ID verification
- And most importantly, avoid offshore providers that offer low-cost services but may lack compliance controls or use unreliable verification methods
The goal of outsourcing is to support your AML process without adding complexity or risk. If it creates additional liabilities or dumps more problems onto your shoulders, then it is not worth doing.
Pro Tips to Keep Costs Low & Compliance Tight
You do not need to spend a large amount to have a compliant AML system. You can have an efficient system that meets all your regulatory needs within the budget.
Here are some practical ways to do this:
- Don’t pay for generic templates. Instead, use free templates from HMRC or your professional body for risk assessments and CDD forms
- Set calendar reminders to review and update your customer due diligence files and risk assessments every six to twelve months
- Keep your AML records securely and ensure access is restricted and properly managed. For this, you can use cloud platforms such as OneDrive or Google Drive
- Maintain proper documentation and make use of regulatory-compliant e-signature software like DocuSign or Adobe Sign
- The ideal way is to subscribe to alerts from HMRC and Companies House or join industry forums and stay updated with the latest updates and policy changes
- Repurpose existing documents and templates wherever possible
All these ensure that you have a cost-effective AML system, and you rely on reputable sources.
Conclusion
Anti-money laundering compliance is now required for all firms, including sole practitioners and small practices. However, it doesn’t have to be time-consuming, complicated, or overwhelming.
With the right approach, templates, and tools, you can meet your obligations, protect your firm, and stay on top of HMRC and Companies House requirements.
So, don’t delay. Get your AML foundation in place, automate as much as you can, and stay on top of regulatory developments. It is the best way to avoid costly mistakes and maintain your firm’s good name.
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