Anti-money laundering checks: What you need to know

Designed to identify clients and assess risks, anti-money laundering (AML) checks are a crucial part of your client due diligence process.

Their purpose is to prevent financial crime by ensuring your clients are not trying to launder money through your practice.

Accountancy firms must carry out these checks in order to comply with the money laundering regulations.

In the UK, an estimated £88 billion worth of money is laundered by criminals annually, so AML checks are vital.

What information do AML checks obtain?

During AML checks, a range of client information is collected. In particular, you will obtain:

· Name

· Photograph on an official document which confirms their identity

· Proof of residential address

· Date of birth.

When should you run AML checks?

It is advised that you run the checks when forming a new business relationship with a client.

You should also carry them out if you suspect money laundering, or you are unsure about previously obtained client identification.

AML can be a serious issue for businesses, so it is beneficial to consider automation of these processes via CRM and onboarding software.

At FibreCRM, our software will provide you with:

· API Link to AML platforms

· Credit Safe, Smart search, ID3

· AML checking

· Business search

· PEPS & sanctions checks.

Want to know more about AML checks and how we can help? Contact us.