What are AML checks for accountants?

Team Nomi

Aug 26, 2026
6 minutes read

• Share On

AML checks for accountants are an important part of complying with anti-money laundering regulations in the UK. They help accounting firms verify client identities, assess potential risks, and reduce the chance of their services being used for money laundering or other financial crime.

For accountants and bookkeepers, AML checks are usually part of the client onboarding process, but compliance does not necessarily end once a client has been accepted. Firms may also need to review client information and carry out further checks when circumstances change or risks increase.

Understanding what AML checks involve can help accounting practices build effective compliance procedures and maintain accurate records.

What is AML or anti-money laundering?

AML stands for anti-money laundering. It refers to the laws, regulations, and procedures designed to prevent criminals from disguising money obtained through illegal activities as legitimate funds.

Accountants can play an important role in preventing financial crime because they may handle financial information, prepare accounts, manage transactions, or provide other services that could potentially be misused.

AML requirements are designed to help firms identify suspicious activity, understand the risks associated with their clients, and report concerns to the appropriate authorities where necessary.

What are AML checks?

AML checks are procedures used to verify a client’s identity and assess the risk of money laundering or other financial crime.

For accountants, anti-money laundering checks can involve collecting and verifying information about a client, understanding their business activities, and assessing whether any factors could present a higher level of risk.

Depending on the circumstances, checks may include:

• • Verifying the client’s identity
  • Checking business and company information
  • Identifying beneficial owners
  • Understanding the client’s business activities
  • Assessing the client’s money laundering risk
  • Carrying out additional checks for higher-risk clients
  • Keeping records of checks and supporting documents
  • Reviewing client information when necessary

The exact checks required can depend on the client, the services being provided and the level of risk identified.

What do AML checks for accountants involve?

For accounting firms in the UK, AML checks generally form part of a wider customer due diligence process.

1. Verify the client’s identity

The first step is to establish who the client is. This may involve checking identification documents and other information against appropriate sources.

For businesses, accountants may also need to establish information about the company and the individuals who own or control it.

2. Identify beneficial owners

Where a client is a company or other legal entity, accountants may need to identify the individuals who ultimately own or control the business.

Understanding the ownership structure can help firms identify potential risks that may not be obvious from the company name or immediate directors.

3. Understand the client’s business

Accountants should have a reasonable understanding of what their clients do, where they operate, and what services they require.

This information helps firms determine whether the client’s activities are consistent with the information provided during onboarding.

4. Carry out a risk assessment

Not every client presents the same level of AML risk. Accountants should consider relevant risk factors when assessing a new client.

Higher-risk situations may require enhanced due diligence or additional information before the relationship can proceed.

5. Keep appropriate records

Firms should keep records of the AML checks they carry out and the information used to support their decisions.

Good record-keeping makes it easier to demonstrate that appropriate procedures have been followed when the firm’s compliance processes are reviewed.

6. Continue to monitor the relationship

AML checks are not necessarily a one-off exercise. Client information and circumstances can change over time.

Accountants should have appropriate procedures for reviewing client information and identifying situations where further checks may be required.

AML checks and KYC for accountants

KYC, or Know Your Customer, and AML are closely connected but are not the same.

KYC focuses on establishing who a client is and verifying their identity, while AML covers the wider procedures used to identify and manage money laundering risks.

For accountants, KYC information can therefore form an important part of their AML compliance procedures. During client onboarding, firms may collect identity, business, and ownership information before assessing the overall risk associated with the client.

Using a structured KYC and AML process can help accounting practices maintain consistent onboarding procedures and keep the necessary information in one place.

Why are AML checks important for accountants?

AML checks for accountants are important because they help firms identify and manage financial crime risks while meeting their regulatory obligations.

Some of the main reasons include:

• • Legal compliance: Helps accounting firms meet their obligations under UK anti-money laundering legislation.
  • Risk management: Helps identify higher-risk clients and situations.
  • Practice protection: Reduces the risk of unknowingly becoming involved in financial crime.
  • Better client knowledge: Helps firms understand their clients and make informed decisions.
  • Accurate records: Provides evidence of the firm’s AML checks and compliance procedures.

Best practices for conducting AML checks

Accounting practices should have clear procedures for carrying out and recording AML checks. Some useful practices include:

Know your client

Collect the information needed to establish the client’s identity, business activities, and ownership structure.

Take a risk-based approach

Assess each client according to the level of risk they present rather than applying the same checks in every situation.

Carry out additional checks when required

Higher-risk clients or circumstances may require enhanced due diligence and additional information.

Keep records up to date

Make sure AML and KYC information is recorded accurately and retained in line with applicable requirements.

Review information when circumstances change

Client circumstances, ownership structures, and business activities can change. Have procedures in place to identify when existing information needs to be reviewed.

Keep up with regulatory requirements

AML requirements can change, so accounting practices should regularly review their compliance procedures and refer to current UK guidance.

How AML software can help accountants

AML software can help accounting practices manage parts of their client onboarding and compliance processes digitally.

Depending on the software, features may include identity verification, KYC checks, client information management, AML records, and workflow management. Bringing these activities into a single process can reduce manual administration and make it easier for firms to keep track of completed checks.

If you are looking for AML software, you can learn more about Nomi’s KYC and AML software for accountants.

If you are considering digital tools for managing KYC and AML checks, Nomi offers AML functionality as part of its accounting practice software.

Frequently asked questions

1. Do accountants need to perform AML checks?
   Ans: Yes. Accountants are expected to carry out AML procedures to verify clients and reduce financial crime risk.

2. What is the purpose of anti money laundering checks for accountants?
   Ans: These checks help accountants confirm client identity, assess risk and maintain compliance with regulations.

3. What is KYC for accountants?
   Ans: KYC for accountants is the process of identifying and verifying clients before starting services.

4. How does AML software for accountants work?
   Ans: AML software automates verification, record keeping and compliance tasks to improve efficiency.

5. Can AML checks be completed digitally?
   Ans: Yes. Many accounting firms now complete identity verification and onboarding through digital AML platforms.