AML Explained
What is AML?
AML can be explained, in short, as Anti-Money Laundering Regulation. (ARD)
Everyone in finance is subject to the obligation of adhering to the AML.
Whenever we want to open a bank account or start a business with other UK organisations or professionals, we are asked to provide documents such as an ID, a recent utility bill with an address, company registration numbers, or tax information.
That happens because when money is involved, customers, individuals, and organisations undergo rigorous checks to confirm their identity, or, better put, the identity of the money they pay into their accounts or otherwise turn.
Indeed, establishing an individual’s identity is the first step in AML. It is vital, in particular, to know if the person involved is a company director or someone with significant control over the company (since these people may have many business connections and dealings). Thus, the process aims to confirm the legitimacy of the funds and eliminate dealings with funds obtained from illegal activities.
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 check their clients and store the results on the system.
