By Capium MembersAML what you need to know29 Feb 2024 This content is brought to you by Capium.The Anti Money Laundering (AML) guidance provides the accountancy industry with the requirements of the Money Laundering Regulations 2017 (MLR 2017) which increased the scope from the earlier Money Laundering Regulations of 2007. The MLR 2017 outlines the additional responsibilities for financial service providers including accountants as they operate in areas with higher money laundering risk. It requires accountants to adopt a risk-based strategy, to prevent criminals from utilising their professional services to launder money. Accountants must put measures in place to identify their clients and monitor how they use their services.As per the HMRC, if you provide any of the following services you need to register for AML supervision with an accounting body or HM Revenue and customs themselves. auditors who carry out statutory audit workaccountants who provide accountancy services to clientstax advisers and consultants who provide advice to clients about their tax affairspayroll agents that provide accountancy services or tax advicecustoms practitioners, freight forwarders and similar businesses if they provide accountancy or tax servicesprofessional bookkeeping servicesIf you perform any of the above services, then you will need to register with any of the main supervisory bodies below(accurate at the time of writing this article). What is AML compliance in the UK?In every country, different checks are required for various reasons. In the UK Anti-Money laundering regulations set the standards that businesses must follow when completing legislative checks within the UK. Organisations take a particular number of steps and controls to ensure that all AML compliance obligations are met. The main supervisory bodies for AMLFor Money Laundering Regulations, the main supervisory bodies for accountants, bookkeepers, tax advisers and other financial advisers are the:Association of Accounting TechniciansAssociation of Chartered Certified AccountantsAssociation of International AccountantsAssociation of Taxation TechniciansChartered Institute of Management AccountantsChartered Institute of TaxationFinancial Conduct AuthorityHM Revenue and Customs Institute of Certified BookkeepersInstitute of Chartered Accountants in IrelandInstitute of Chartered Accountants in ScotlandInstitute of Chartered Accountants of England and WalesInstitute of Financial AccountantsInternational Association of BookkeepersLaw SocietyNow that we know how and why the AML was implemented, let’s look into how we can perform these checks to stay compliant. Ever wondered what Anti-Money Laundering solutions do?As an Accountant, you don’t need to understand every unturned stone, but at the same time, you need to know the basics and why it’s important to have a solution in place when you need it! Let’s start with the basics:What is an AML check?An Anti-Money Laundering (AML) check is an ID (identity assessment) to ensure that all people or investors are who they claim to be and to prevent financial crime. AML checks are a safeguard to help stop businesses from becoming directly or indirectly caught up in criminal activity. Regulated businesses that fail to undertake these checks are likely to be subject to substantial fines as well as other serious consequences.There are several different types of checks, from ‘know your customer’ (a basic verification) to real-time checks to assess their potential risk. In most cases today, these checks can be carried out and completed in the background using a separate application/solution online.What is an AML solution?There are AML solutions available today online security checks, but wouldn’t it be wonderful if they worked with your current software solution?Is it expensive?Most AML checks are easy to use, allowing instant decisive decisions. Capium’s solution is just a few pounds per check. Have a look for yourself here.Strengthening AML ComplianceIn today’s dynamic business landscape, financial institutions and accounting firms play a part in preventing and detecting suspicious activities that could lead to money laundering. Regulatory bodies are tightening their grip on anti-money laundering (AML) measures, accountants must stay ahead of the curve. Capium explores the significance of AML compliance for accountants and introduces Capium AML as a sturdy solution to streamline and enhance these efforts.Understanding AML Compliance:Anti-money laundering compliance involves a set of regulations and procedures designed to prevent and detect activities that may facilitate money laundering or terrorist financing. For accountants, who often handle financial transactions and sensitive client information, staying compliant is not just a legal obligation but also a critical step in maintaining the financial system’s integrity.The Role of Accountants in AML:Accountants are on the front lines of financial transactions, making them key players in the fight against money laundering. Their responsibilities include due diligence, monitoring financial activities, and reporting suspicious transactions to relevant authorities. AML compliance protects the firm and its clients but also contributes to the overall stability of the financial ecosystem.Capium AML: A Comprehensive SolutionCapium AML is a reliable tool for accountants seeking a comprehensive AML solution. The module supports firms with the required tools to comply with regulatory requirements, identify potential risks, and prevent financial crime. Here are some key features that make Capium AML stand out:Regulatory Compliance: Capium AML keeps pace with evolving AML regulations, ensuring that your firm remains in full compliance with the latest legal requirements.Client Due Diligence: Capium AML streamlines the client onboarding process by automating due diligence checks. This enhances the accuracy of client risk assessments.Transaction Monitoring: The platform provides real-time monitoring of financial transactions, allowing accountants to identify and investigate suspicious activities quickly.Risk Assessment, Reporting and Documentation: Capium AML generates comprehensive reports, ensuring your firm has a documented trail of AML compliance efforts, along with onboarding enhancements. It’s crucial for regulatory audits and internal reviews.Training and Guidance: Capium customers have an exclusive training program set up at a competitive fee (just £40).In the ever-evolving landscape of financial regulations, accountants must prioritise AML compliance to protect their firms, clients, and the broader financial system. Capium AML serves as a valuable ally in this endeavour, offering a sturdy and user-friendly solution to enhance AML efforts.Speak to CapiumGive Capium a call on 020 3322 5578 to see if we can help, or you can book yourself in here.This content is brought to you by Capium.This is a sponsored post by Capium. We are pleased to bring these products to your attention, which we believe may assist with your AML compliance, but please note that this does not constitute a recommendation from AAT. Liability for AML compliance ultimately remains with you when it comes to your firm demonstrating that any customer due diligence conducted by a third party meets anti-money laundering legislation. Capium is a holistic cloud-based accounting software, inherently Making Tax Digital for Accountants, Bookkeepers and Businesses.