AML Compliance Checklist | The 6 Key Components to look for in AML Solutions

AML Compliance Checklist – The 6 Key Components to look for in AML Solutions

The Importance of Compliance – An Investment into Opportunity and Growth
October 2, 2019
Q&A Series – Politically Exposed Person (PEP)
October 21, 2019

Anti Money Laundering Compliance

Your AML Compliance Requirements


By law, you are required to perform risk-based customer due diligence to prevent your business from being exploited by criminals for the purposes of money laundering.


These compliance standards are upheld by the following legislation:

  • The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017
  • The Proceeds of Crime Act 2002

Due to globalisation, financial crime is now an international issue. According to TechSprint, over $30bn will be laundered through the global financial system.


Therefore, an internationally led fight against money laundering is co-ordinated by some of the following:


  • GLOBAL - The Financial Action Task Force (FATF)
  • International entity that sets anti-money laundering standards and counter-terrorist financing measures and recommendations on a global scale.


  • EU - The 5th and 6th AMLD
  • The 5th AMLD is to come into effect in January 2020.

    The 5th directive will require you to examine the background and purpose of a wider range of transactions. It proposes extra EDD measures for business relationships and transactions with high-risk 3rd countries.

    The 6th AMLD is to come into effect in June 2021.

    Aims to tackle legal discrepancies in order to more effectively and cooperatively tackle money laundering. The aim is to create a harmonious definition of money laundering between the EU member states.


  • UK - The Financial Conduct Authority (FCA)
  • Regulates and aids the UK financial sector, setting compliance standards to combat financial crime such as money laundering and the funding of terrorism. In partnership with the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) to strengthen the UK’s anti-money laundering regime.


    As a professional within the regulatory sector, you are obliged to upkeep rigorous anti-money laundering procedures concerning the above legislation.


Our AML Compliance Checklist

Solutions to Combat Money Laundering


We have condensed the most relevant anti-money laundering legislation and regulatory boards recommendations into 6 key components. These cover how you can successfully carry out your AML obligations.

  • Identity Verification
  • Id verification is imperative for good AML practice. As the 5th EU Directive stipulates, electronic identity validation methods are essentially mandatory to fully satisfy your AML obligations.


  • PEP Check
  • A PEP (Political Exposed Person) is thought of as a high-risk individual due to their status and potential risk of corruption. PEPs are individuals with prominent public functions such as senior politicians, senior civil servants, or people holding high military rank. Due to this risk, further action is required.

    If your client is flagged as a PEP, you simply need to conduct enhanced due diligence such as monitoring the client’s financial transactions.


  • Watchlist Screening (Sanctions Check)
  • These screens are imperative to prevent your business from conducting any business or transactions with any person on the sanctions list.


  • Written AML Policy
  • Carrying out AML and KYC checks is only part of your money laundering obligations. You must also have a thorough policy in place which details your firm's AML policies and procedures. This policy must include but isn’t limited to the following:

    • An assessment of risk
    • Monitoring and controls
    • Nominated Officer of the firm
    • Suspicious Activity Internal Report Form
  • Training
  • It is a legal requirement that all staff undergoes anti-money laundering training and that this is recorded and on file. You must train employees on how to recognise suspicious activities and what to do in the event of suspicion.


  • Continuous Reviewing
  • AML compliance is a continuous process of verifying, monitoring and managing. The process does not stop after the client onboarding stage but rather carries on throughout the entirety of the client relationship.

    For example, records of any AML check or ID verification need to be kept for a period of 5 years from the point of termination of a client relationship. High-frequency monitoring of the PEP & Sanctions list may be appropriate in certain cases.

  • Claire Thornton
    I absolutely love it. I can't believe how easy it is to use and how user friendly it is in its format.
    Claire Thornton
    TLW Solicitors
  • Mark Davis
    Love it – very happy client as well as we can now speed up the process by 4 days for him.
    Mark Davis
    XL Financial Services Ltd
  • Jon Booth
    The system was extremely easy to set up and we were up and running with it very quickly… It made a refreshing change to be in that position so quickly.
    Jon Booth
    Booth & Co
  • Ross Findlater
    This is very user friendly – brilliant! I wish I’d discovered this at the start of trading.
    Ross Findlater
    Business Tax Solutions Ltd
  • Richard Nevill
    Very clear & simple. Used it, without reading the manual of course, just to give it a try. Excellent service.
    Richard Nevill
    Nevill Stormont & Co
  • Donald Inglis
    I have just used Veriphy for the first time. It is excellent – so much easier than chasing old passports and utility bills that are sent by email.
    Donald Inglis
    Inglis Chartered Accountants
Join / Log In