AML checks

[MrJuice]

My accountant's practice is regulated by the institute of financial accountants and he says they require him to do AML checks on all of his clients. His fee is £40

Is this necessary? And if so, is £40 reasonable and is this an annual check?



He says it is necessary. I don't know if it's a reasonable charge but he says he is paying some third party to do the check and charges admin on top. Not sure of breakdown. I'm yet to hear back whether this is an annual check.

What does PH think?

[Simpo Two]

I stuffed it into Google and got this:

https://tinyurl.com/y43lw5a5

'You must undertake checks if you consider there is a risk, to ensure that your customer is carrying out due diligence (and if a money transmitter is involved obtain ‘Complete Information on the Payer’). This will include checking the relevant records for specific transactions.'

My guess is that it's not actually necessary but he's back-covering, perhaps to please his insurers, and getting you to pay for it.

[2 sMoKiN bArReLs]

I visited here expecting to find a quest for secret Aston Martins!

Don't you hate abbreviations?

[ant1973]

MrJuice said:

My accountant's practice is regulated by the institute of financial accountants and he says they require him to do AML checks on all of his clients. His fee is £40

Is this necessary? And if so, is £40 reasonable and is this an annual check?



He says it is necessary. I don't know if it's a reasonable charge but he says he is paying some third party to do the check and charges admin on top. Not sure of breakdown. I'm yet to hear back whether this is an annual check.

What does PH think?

I'm a solicitor and am caught by the same regulations. We don't charge for doing it because we shifted the process online. Costs around 2 quid a go. If they are doing it old school, it is time consuming and a pain. Even if it did cost 40 notes I would just swallow the cost or price it through the rates. Clients hate seeing add ons so I would prefer not to do it.

[MrJuice]

Thanks

What/who do you use that does the checks for £2?

He says he needs to check the company and each director. £25+£15=£40

[MrJuice]

Simpo Two said:

I stuffed it into Google and got this:

https://tinyurl.com/y43lw5a5

Thanks

I'm happy for him to hold my records. But £40 is taking the piss if all he needs is my passport and proof of address

Adding in the AML header is going to make people think this is official. Better just pay. But it is taking the piss

[ant1973]

MrJuice said:

Thanks

I'm happy for him to hold my records. But £40 is taking the piss if all he needs is my passport and proof of address

Adding in the AML header is going to make people think this is official. Better just pay. But it is taking the piss

We use taxcalc who I think repackage Equifax. You don't strictly need to id directors unless there is an issue. It's usually just the psc. What I would say is that your accountant is the most important business relationship you will have. Starting off with a fight over 40 quid is a mistake. I think you should either suck it up or go elsewhere.

[MaxFromage]

MrJuice said:

Thanks

I'm happy for him to hold my records. But £40 is taking the piss if all he needs is my passport and proof of address

Adding in the AML header is going to make people think this is official. Better just pay. But it is taking the piss

It's yet another cost that we have to absorb unfortunately. £40 is pretty steep though in terms of how much it actually costs in time and most accountants would see it as a cost of setting up a new client and not charge for it. ID needs to be revisited, but isn't a strict ongoing cost.

I'd be more concerned you've got yourself an accountant who will be charging you for every little thing. Significant fees for a registered office, confirmation statements, phone calls etc.

[PSB1]

I've just engaged a barrister / tax advisor to draw up a contract. Quoted me 2 hours + VAT. Fair.

No extra charge for AML checks on the 2 shareholders.

In my case, 'AML checks' are actually just 'Identity Verfication' - photo ID, proof of address + a whatsapp call with us holding up the photo ID.