As an accountant in the UK, it’s essential to stay up to date with the latest AML regulations and requirements. One of the most effective ways to achieve compliance is by using AML software specifically designed for accountants. In this article, we will explore the AML software for accountants, including how they can help you meet FCA, ICAEW, and ACCA regulations, conduct client due diligence, and how Verify 365 technology can be the solution to help accountants stay compliant.

This guide has been updated as of April 2023 and include guidance reflecting the recent legislation changes including the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021, the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 and for the European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2021 and the European Union (Anti-Money Laundering: Central Mechanism for Information on Safe-Deposit Boxes And Bank And Payment Accounts) Regulations 2022.

What is Anti-Money Laundering (AML)?

AML, or Anti-Money Laundering, is a set of regulations and procedures designed to prevent the use of financial systems for illegal activities, including money laundering and terrorist financing. In the UK, AML regulations are overseen by the Financial Conduct Authority (FCA) and enforced through the Proceeds of Crime Act 2002 (POCA).

As an accountant, you are likely to be a subject of the Money Laundering Regulations 2017 (MLR). The MLR requires accountants to conduct client due diligence, which involves identifying and verifying your clients’ identities, understanding the nature and purpose of your business relationship, and monitoring transactions to identify suspicious activity.

In the UK, ACCA is a Professional Body Supervisor (PBS) for money laundering as detailed in schedule 1 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017).

In Ireland ACCA is a Prescribed Accountancy Body (PAB) under the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2010 to 2021.

ACCA automatically supervises firms for AML as long as there is one or more ACCA member holding an ACCA practising certificate with a combined majority control over the firm. ACCA supervises sole practitioners who hold an ACCA practising certificate.

What is required of an ICAEW anti-money laundering (AML) supervised firm?

ICAEW AML supervised firms play a critical role in detecting and preventing money laundering and terrorist financing.

Your firm must comply with:

* The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the 2017 Regulations as amended by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019)); and
* the Proceeds of Crime Act 2002 (POCA) as amended by the Serious Organised Crime and Police Act 2005 (SOCPA).

Firms can refer to the AML Guidance for the Accountancy Sector

To prevent money laundering, ICAEW supervised firms must:
* carry out a firm-wide risk assessment to understand the money laundering and terrorist financing risks your firm faces;
* establish, maintain and regularly review policies, controls and procedures to mitigate and manage effectively the risks identified through a firm-wide risk assessment;
* carry out proper customer due diligence on your clients, which includes a risk assessment of the money laundering risks of the client and verify the client’s identity and source of funds (where appropriate). The amount and type of verification procedures should reflect the risk rating of each client;
* train all staff so that they can properly identify AML risks, red flag indicators and suspicious activities; and
* appoint a nominated officer to receive internal suspicious activity reports and make external suspicious activity reports (SARs) to the National Crime Agency.

AML Software for Accountants

Using AML Software for Accountants in the UK AML software for accountants is designed to help you comply with AML regulations more efficiently and effectively. These software solutions are tailored to meet the specific needs of accountants and offer a range of features, including:

1. Client Due Diligence (CDD). AML software helps you conduct client due diligence by providing access to global watchlists, sanctions lists, and Politically Exposed Persons (PEPs) lists, making it easier to identify high-risk individuals and organizations. The software also offers automated identity verification processes, ensuring that your clients’ identities are authenticated and verified.

2. Ongoing Monitoring. AML software allows you to monitor transactions on an ongoing basis, enabling you to identify unusual activity and take appropriate action. The software can automatically flag transactions that fall outside of usual patterns or that exceed specific thresholds, alerting you to the need for further investigation.

3. Risk Scoring. AML software offers risk-scoring capabilities, which assign a risk level to each client based on various factors, such as their location, industry, and transaction history. The risk score helps you prioritize your compliance efforts, focusing on high-risk clients and transactions.

4. Record Keeping. AML software helps you maintain accurate and up-to-date records, ensuring that you can demonstrate compliance with AML regulations. The software provides a central repository for all AML-related documents, including client due diligence reports, risk assessments, and transaction monitoring logs.

Verify 365 Technology: The Ultimate AML Software for Accountants to Stay Compliant

Verify 365 Technology is an AML software solution specifically designed for accountants in the UK. It offers all the features mentioned above, making it easier for accountants to comply with AML regulations.

Some of the benefits of using Verify 365 Technology for Accountants include:
1. Integration with Accounting Software. Verify 365 Technology integrates seamlessly with your existing accounting software, reducing the need for manual data entry and streamlining your compliance efforts.
2. Automated Client Onboarding. Verify 365 Technology offers automated client onboarding, making it quicker and easier to verify your clients’ identities and conduct due diligence.
3. Customisable Risk Scoring. Verify 365 Technology allows you to customise your risk-scoring model, ensuring that it reflects the specific risks associated with your business and clients.
4. Continuous Monitoring. Verify 365 Technology offers continuous monitoring, alerting you to any changes in your clients’ risk profile and enabling you to take appropriate action quickly.

So, should your accountancy practice use Verify 365?

Yes, as an accountant in the UK, compliance with AML regulations is essential. Verify 365 AML software for accountants can help you meet these obligations more efficiently and effectively, reducing the risk of non-compliance and potential penalties.

Verify 365 Technology is a leading AML software solution designed specifically for accountants in the UK, offering a range of features to help you comply with AML regulations. By using Verify 365 Technology, you can streamline your compliance efforts, reduce the risk of non-compliance, and demonstrate your commitment to ethical business practices.

In summary, AML software for accountants in the UK is an essential tool for complying with AML regulations. Using AML software can help you conduct client due diligence, ongoing monitoring, risk scoring, and record keeping more efficiently and effectively.

Verify 365 Technology is a leading AML software solution designed specifically for accountants in the UK, offering a range of features to help you comply with AML regulations. By using Verify 365 Technology, you can streamline your compliance efforts, reduce the risk of non-compliance, and demonstrate your commitment to ethical business practices.