AML Explained
What is AML?
AML can be explained, in short, as Anti-Laundering Money Regulation. (ARD)
Everyone in finance is subject to the obligation of adhering to the AML.
Customers, individuals, and organisations undergo rigorous checks to confirm their identity—or, better put, the identity of the money they pay to their accounts.
The first step in AML is establishing an individual’s identity. It is vital if an individual is a company director or someone with significant control over the company.
This process aims to eliminate dealings with funds obtained by criminals in illegal activities.
For this reason, banks and other financial institutions, including accountants and bookkeepers, ask for proof of ID and a recent utility bill with a person’s address when they set up a bank account or start working with them professionally.
Additionally, under due diligence each year, accountants and bookkeepers must verify their clients’ and company backgrounds to comply with the regulations. They are subject to a series of questions determining the “risk assessment” outcome. ”
Organisations like ICB and ACA offer verification software to their Members in Practice who carry out the process of checking their clients and store results on the system.
