{"id":25254,"date":"2025-07-04T09:55:47","date_gmt":"2025-07-04T08:55:47","guid":{"rendered":"https:\/\/figsflow.com\/uk\/?p=25254"},"modified":"2025-12-16T11:56:47","modified_gmt":"2025-12-16T10:56:47","slug":"2025-guide-to-aml-identity-verification-rules-for-accountants","status":"publish","type":"post","link":"https:\/\/figsflow.com\/uk\/2025-guide-to-aml-identity-verification-rules-for-accountants\/","title":{"rendered":"2025 Guide to AML & Identity Verification Rules for Accountants"},"content":{"rendered":"\t\t
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Anti-Money Laundering (AML) rules have become stricter and with the introduction of the Authorised Corporate Service Provider (ACSP) regime, identity verification obligations have reached new level of complexity.<\/p>

Many accountants, especially smaller firms and solo practitioners are struck juggling web of overlapping regulations and evolving supervision requirements. The Result? Onboarding new clients has become a bureaucratic nightmare. At the same time, the stakes are higher than ever and getting it wrong can lead to hefty fines, legal headaches and serious damage to your professional reputation.<\/p>

But compliance and convenience should not be the trade-off. This guide lays out what you need to know about AML and ID verification rules in 2025- what’s changed, what\u2019s expected from you and how to stay compliant without overcomplicating your processes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is an AML Check?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Here is every accountant\u2019s nightmare scenario: a money launderer uses your services to conceal illegal funds or funnel dirty money. <\/span>\u00a0<\/span><\/p>\n

You were careful but still, one person somehow slipped through the cracks. You didn\u2019t know he was laundering money through you. But under UK law, not knowing is not a defence. You may be held legally liable for aiding and abetting an illegal act, fined or even sentenced up to 14 years in prison! There\u2019s a lot at line.<\/span>\u00a0<\/span><\/p>\n

That is why an AML id check is crucial. <\/span>\u00a0<\/span><\/p>\n

An AML check is the process of verifying a client to ensure they are not involved in money laundering or other types of financial crimes<\/span><\/b>. These checks are a legal requirement for businesses operating in regulated sectors like accounting, law, real estate and finance. <\/span>\u00a0<\/span><\/p>\n

But first, what is AML?<\/span><\/b>\u00a0<\/span><\/p>\n

Anti-Money Laundering (AML) refers to the laws, regulations and procedures designed to prevent criminals from disguising the origins of illegally obtained money. In other words, it is about stopping the process of turning \u201cdirty money\u201d obtained from drug trafficking, fraud, tax evasion, corruption or other crimes into \u201cclean money\u201d that appears to come from legitimate source. <\/span>\u00a0<\/span><\/p>\n

Money laundering typically happens in three stages:<\/span><\/b>\u00a0<\/span><\/p>\n

Placement<\/span><\/b>: illegal funds is introduced into the financial system<\/span>\u00a0
Layering<\/span><\/b>: money is moved through various transactions, and its original source is concealed<\/span>\u00a0
Integration<\/span><\/b>: money is introduced into the economy as legitimate funds (e.g. through property purchases, businesses or investments)<\/span>\u00a0<\/span><\/p>\n

Every year, trillions of illegal funds is laundered globally through this process and almost 40% of that passes through the UK. To combat this, Governments across the world introduced Anti-Money Laundering (AML) laws and set out AML checks as a regulatory requirement. In the UK, the rules for AML checks are set out in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. <\/span>\u00a0<\/span><\/p>\n

As per the rules, <\/span>businesses are legally required to conduct customer due diligence (CDD) before entering any business relationship beyond certain risk thresholds<\/span><\/b>. This includes:<\/span>\u00a0<\/span><\/p>\n