What is Anti Money Laundering?
Anti-money laundering (AML) refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. For UK accounting firms, AML compliance requires implementing policies to monitor client activities, verify identities, and report suspicious transactions.
UK accountancy practices fall under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, supervised by HMRC or professional bodies such as ICAEW, ACCA, or ICAS. Firms must conduct client due diligence (CDD), maintain risk assessments, provide staff training, and submit Suspicious Activity Reports (SARs) when necessary. Beyond legal requirements, robust AML procedures protect firms from reputational damage and ensure they are not inadvertently facilitating financial crime.
Modern accounting software can streamline AML compliance through digital identity verification, automated risk screening, secure document storage, and audit trails. These features help practices meet their regulatory obligations whilst managing client onboarding and ongoing monitoring more efficiently.
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