Accountants and AML: Why creating a culture of compliance has never been more vital

Money laundering is a serious and widespread issue in the United Kingdom. One recent example of this is Santander Bank being fined £108m for anti-money laundering failures at the end of 2022. It’s one of a number of high-profile examples showcasing anti-money laundering (AML) processes not matching up to the threat.

Accountancy services, in particular, remain an attractive target for money launderers, who are looking to find ways of making their funds legitimate. This is backed by our research that found 53% of respondents had identified an instance of suspected money laundering in the past three years, with 24% identifying more than one. The accounting sector needs to reassess its approach to compliance or risk both financial and reputational damage.

Accountants can only win the AML compliance war against bad actors by creating a culture of compliance. This includes utilising suitable technology, keeping across regulatory updates, and getting their whole team appropriately trained to identify risks. Since the advice of supervisory bodies – such as the ICAEW – are nuanced and often evolving, savvy accountants must look to experts to apply the regulations to novel situations and minimise cost and risk.

The real headache of AML lies in the admin. It can take days (or even weeks) to collect required documents, map the structure of a trust or a company, and check against sanctions lists, all before a firm can start acting for a client. These processes need to keep pace with client expectations as well as the speed of delivery of today’s financial services and advisory firms. Accountants need quick, easy and accurate ways to onboard customers and complete financial transactions, without fear of getting their knuckles rapped – or worse – when their supervisor conducts an audit.

Adopting technology to deal with the heavy admin is crucial. This leaves teams to focus on chargeable work and make better, more informed decisions while ensuring compliance. Not only does this reduce manual work for their team, but also ensures peace of mind against a very real and growing threat.

No accountant wants to be fined and no accountant wants to be on the wrong side of history.

By Simon Luke, UK Country Manager, First AML

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