If you are an accountant, bookkeeper, or any kind of finance professional, providing services to clients – you have a legal obligation and are bound by Money Laundering Regulations.
Current money laundering regulations require you to prove the identity of your clients.
For individuals, this can be achieved by obtaining original documentation, and ensuring that the person who has provided that document is real and present.
This means the range of documentation required is much larger and it can be difficult to obtain everything needed.
Our solutions simplify these processes using electronic verification and are able to integrate directly into your own customer management system for a seamless approach.
A new set of legislation guidelines have been created as part of the 5th Anti-Money Laundering Directive, deployed by the European Commission in July 2018, to help accounting practitioners combat money launderers.
For professional bodies such as governments and financial institutions, money laundering has increasingly become more of an issue over the past few decades.
The collection of due diligence accounting processes targets a range of criminal activities including tax evasion and corruption, as well as more serious offences such as manipulating the market or trading in stolen goods.
The term anti-money laundering (AML) encompasses a wide set of processes, regulations and laws put in place to assist compliance recording and monitoring, thus preventing the illegal generation of funds.
With financial institutions being so central to preventing fraud, it’s imperative that accountants have adequate tools and know-how to detect money laundering.
In turn, by improving processes to identify and prevent fraudulent activity, accountants and financial professionals can also assist in the fight against terrorist financing, as most terrorist groups and criminals rely heavily on funding their illicit operations with laundered money.
Good accountancy practice requires training all employees, not just those in your finance department, in anti-money laundering and risk assessment, so they are well equipped to note and report any suspicious activity.
Everybody should know the process of reporting suspicious activity and that the MLRO is responsible for collating and reporting for the business.
The UK government has put in place a set of regulations whereby the main goal is to help businesses prevent fraud and terrorist funding.
As part of the AML compliance, companies are legally obligated to appoint a supervisory body, also known as Money Laundering Reporting Officer (MLRO).
The MLRO, preferably a senior employee from the accountancy team, will be responsible for the consistent implementation of the company’s AML policies and procedures.
HMRC regulation laws provide guidance to financial institutions, and accountants in particular, so they can effectively monitor client records, detect money laundering tactics and report them in due time.
As well as going through a money-laundering checklist, as an account, you are required to proactively monitor clients’ behaviour once they are on the company’s record, most notably by carrying out an audit every 12 months to update client’s records.
This type of process helps detect suspicious activity and protect your business after you’ve taken on a client, and as such, AML and due diligence checks should be performed once again, just as they were when the client was on board.
As part of their due diligence process, accountants and financial professionals are required to perform a series of checks, including Identity Verification and Know Your Customer (KYC) checks, as well as Electoral and Mortality Register ID checks. In some cases, more enhanced AML accountancy compliance checks such PEP (Politically Exposed Persons) and Sanctions searches are also required.
AML compliance recording and monitoring are essential for some finance-heavy organisations such as accountancy practices, law firms and housing, to name a few.
Failing these checks could lead to hefty fines for these companies. For example, UK estate agents are experiencing the repercussions of breaching anti-money laundering regulation laws, nearly a fifth of all professional bodies in the industry paying non-compliance fines between £15,000 and £25,000.
Credas’ anti-money laundering solution allows accountants to perform due diligence identity checks in a much quicker and simpler way.
Our real-time ID verification provides a cost-effective way to determine whether a potential client has presented a fraudulent ID document, been a subject of global financial sanctions or is listed as a Politically Exposed Person (PEPs), domestically or internationally.
The integration of this software within accountancy practices or financial institutions allow users to perform identity checks, AML checks and KYC checks both effectively and reliably, using two-way facial recognition technology.
Our real-time ID technology safeguards the data of all parties involved while saving accountants the trouble of meeting clients in-person to perform identity checks. Credas’ industry-leading facial recognition software also assists you with the data security aspects of compliance recording.
By storing your clients’ verification information on the cloud, we help you comply with GDPR regulatory checks.
Our digital ID verification process will help you revolutionise the anti-money laundering compliance process of your accountancy practice, protect your company and combat terrorist financing.