You’ve spent months building your marketing funnel. Networking events, Google Ads, LinkedIn outreach. Finally, a solid lead converts. Engagement letter signed. First invoice ready.
That’s when the real headache starts.
Chasing documents via email for weeks. Juggling between Companies House verification portals, your AML compliance spreadsheet, and whatever folder system you’re using for secure storage. Explaining to yet another client why their mobile phone bill doesn’t count as proof of address.
Three weeks in, you’re still waiting for a decent passport photo. Your client’s frustrated. You’re questioning whether this engagement was worth the hassle.
If that’s you, don’t worry.
This guide walks you through a simple 3-step workflow that handles identity verification for both your AML obligations and Companies House requirements. Plus, a bonus at the end that shows how to do all of this within a single platform instead of juggling five different systems.
30-Second Summary
Identity verification is mandatory before taking on any client. Two separate requirements apply: Anti-Money Laundering (AML) obligations under Money Laundering Regulations 2017 and Companies House ID verification from November 2025.
The workflow breaks into three steps:
- Collect government photo ID and proof of address from your client
- Verify documents are genuine and match the person claiming them
- Store records securely for 5 years with complete audit trails
Manual verification takes 45+ minutes per client. Multiply that across monthly onboarding and you’re losing billable hours to administrative work.
FigsFlow reduces verification to under 5 minutes. Automated document collection, electronic checks against government databases, compliant storage with automatic reminders. One platform handles both AML and Companies House requirements simultaneously.
What is Client ID Verification & When Do You Need It?
Client ID verification is the process of confirming that an individual is who they claim to be, using official documents and reliable authentication methods. It’s a legal requirement under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
In practice, you collect and verify identity documents such as passports, driving licences, and proof of address, then confirm they match the person claiming them. Done properly, this establishes three critical things:
- The person exists. They’re using their real identity, not a fabricated or stolen one
- They are who they claim. The person in front of you matches the identity documents they’ve provided
- You have an audit trail. You’ve documented your checks properly for HMRC inspections and regulatory compliance
When You Must Complete ID Verification
You need to complete client ID verification whenever you’re entering into a business relationship that carries legal, financial, or regulatory obligations. This typically happens in two main situations:
KYC & AML Compliance
If your practice operates in accounting, finance, law, property, or any regulated sector, you must verify client identity before onboarding them or carrying out any work on their behalf. This applies to sole traders, company directors, Person with Significant Control (PSC), partnership members, and trustees.
These checks help ensure you only deal with legitimate clients and that you meet Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Ongoing verification may also be required if client details change or if a risk review is triggered.
Companies House ID Verification
Since November 2025, Companies House requires identity verification for directors, people with significant control (PSCs), and authorised agents who submit filings or form new companies. This verification must be completed before incorporation or before certain filings are accepted, ensuring transparency about who controls every UK registered company.
In both contexts, accountants must collect clients’ ID documents, verify their authenticity, and confirm that they match the correct individual. They also need to keep secure records for compliance purposes and re-verify identities whenever client details change or new filings are required.
3 Steps to Complete Client ID Verification
The client ID verification process follows the same essential workflow whether you are meeting AML obligations or complying with Companies House requirements. Once you understand these three steps, you can handle both frameworks efficiently within a single, streamlined system.
Step 1: Collect the Right Documents from Your Client
Begin by requesting identification documents as soon as the engagement letter is signed. This early step helps avoid last-minute delays and ensures that your client’s information is ready before any filings or transactions take place. Be clear about which documents are acceptable and why others are not. Offer digital upload options so clients can submit everything securely and conveniently.
Request documents at onboarding rather than waiting until you need to submit accounts or filings. This gives clients time to locate valid passports, driving licences, or recent proofs of address.
Acceptable documents typically include:
- Photo Identification – Valid UK or international passport, UK photocard driving licence, national ID card from an EEA country, or biometric residence permit.
- Proof of Address (Issued Within the Last Three Months) – Utility bill, bank or credit card statement, council tax bill, mortgage statement, or similar document.
For company clients, also collect the certificate of incorporation and proof of the registered office address.
A single, well-structured document request can save weeks of back-and-forth chasing missing items.
Step 2: Verify Document Authenticity & Match to Client
Collecting documents is only the start. The next step is confirming that they are genuine and that they belong to the right individual.
Begin by checking the documents themselves. For photo ID, review security features such as holograms, watermarks, or UV elements, and compare them against genuine examples. Confirm that the photo matches the person you are dealing with, whether in person or over a secure video call. Make sure the details are consistent, unaltered, and that the document is still valid.
For proof of address, verify that it was issued by a legitimate organisation, and that the name matches the photo ID exactly. Ensure the address is complete and current, and that the document date falls within the three-month requirement.
Choose the appropriate verification method based on how you engage with clients:
- In-person verification involves checking original documents face to face, making certified copies, and recording the date and your name as the verifier
- Remote verification applies when clients cannot attend in person. Conduct a video call to view original documents, and request certified copies sent separately. Enhanced due diligence may be required for remote verifications
- Electronic verification uses trusted digital tools that check documents against official databases such as the Passport Office or DVLA. These services confirm authenticity instantly and create automatic audit trails, ideal for firms managing high client volumes
Record every step. Keep copies or scans of all documents and note the verification date, method used, and who performed the checks. Proper documentation demonstrates compliance when HMRC reviews your AML procedures.
Step 3: Store Verification Records Securely & Maintain Compliance
Once verification is complete, store all client due diligence records securely for at least five years after the business relationship ends. The five-year retention period starts when the client leaves your practice, not at onboarding.
Your storage system should meet four essential standards:
- Encryption to protect sensitive documents against loss or unauthorised access
- Access controls to ensure only designated compliance staff can view identity data
- Regular backups to prevent data loss from system failures or cyberattacks
- Clear naming conventions to allow instant retrieval of files, for example: ClientName_IDType_VerificationDate.
Records must be easily accessible. HMRC inspectors expect you to produce verification documents within minutes, not hours.
Beyond storage, ongoing monitoring is part of compliance. Review and update verification whenever a client’s circumstances change such as a new address, new ownership structure, or changes in business activity. Re-verify identities for higher-risk engagements or after long periods of inactivity.
Proper storage and ongoing monitoring prove that you have completed verification correctly. Even the most thorough checks are meaningless if you cannot show evidence of compliance when requested.
How FigsFlow Shines
FigsFlow combines every step of the ID verification process within a single workflow.
Clients upload documents directly through secure portals. No email chains. No postal delays. The system automatically prompts for missing or incorrect documents, so clients understand exactly what’s needed and why expired documents won’t work.
Once documents arrive, FigsFlow performs electronic verification using industry standard technology that checks documents against comprehensive government databases. The system validates authenticity and flags suspicious documents automatically for manual review.
Beyond document checks, FigsFlow screens clients against sanctions lists and politically exposed person databases. Risk assessment templates help you evaluate client risk levels systematically across your entire practice.
Verification status appears on your client dashboard, giving you instant visibility into which clients have completed verification and which still need follow-up. Complete audit trails generate automatically. Every step gets timestamped and recorded. When HMRC asks for proof, you have complete verification records ready immediately.
Here’s how the comparison between your current system and FigsFlow might look:
By using FigsFlow, you can save over 45 minutes per client. For practices onboarding 10 clients monthly, that’s over 7 hours returned to billable work every month.
Don’t believe us yet? See for yourself with FigsFlow’s 30-day free trial. No credit card. No commitment required. Experience FigsFlow to the fullest.
Conclusion
Accountants need to verify client identity during onboarding for AML compliance and when submitting filings to Companies House. Both requirements are mandatory before you can start any work.
The workflow is not as complex as many accountants think. Collect acceptable documents from your client. Verify authenticity using reliable methods. Maintain compliant audit trails. All done in three simple steps.
FigsFlow simplifies this even further with its AML & KYC module built specifically for accountants. What once took 50 minutes per client can now be completed in under 3 minutes within a single integrated workflow.
See how FigsFlow streamlines KYC, AML and your favourite: client ID verification in minutes. Book Your Demo Today.
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