If you’ve ever been asked by your accountant or bookkeeper to provide identification documents—like a passport, driver’s license, or proof of address—you may have wondered: “Why do they need this? Isn’t this more for their records than mine?”
The truth is, Anti-Money Laundering (AML) checks aren’t about making life harder for you or adding unnecessary paperwork. They are a legal requirement designed to protect both you and your accountant or bookkeeper from financial crime.
What is AML?
AML stands for Anti-Money Laundering. It refers to a set of laws and regulations designed to prevent criminals from disguising illegally obtained money as legitimate income. These rules require professionals like accountants, bookkeepers, and financial advisers to confirm their clients’ identities and understand the nature of the business they are working with.
It’s not about distrust, it’s about due diligence.
Why Do You Have to Do AML?
You might think the AML process benefits your accountant or bookkeeper more than you. In reality, it’s there to protect you, too. Here’s why:
- Legal Requirement
By law, accountants and bookkeepers must verify their clients’ identities before they can work with them. It’s not optional—it’s mandatory. If they don’t, they could face heavy fines, loss of their professional licence, or even prosecution. - Protects Against Identity Misuse
Proving your identity ensures no one can impersonate you to commit fraud or set up accounts in your name. This safeguards you from potential financial and reputational damage. - Keeps Your Business Clean
When you provide ID, you’re showing that your business is legitimate and transparent. This can be important if you ever apply for finance, sell your company, or undergo a tax inspection. - Prevents Delays Later
Without AML checks, your accountant or bookkeeper cannot fully act on your behalf. Providing your ID upfront avoids delays in filing tax returns, securing funding, or getting financial advice.
Why Does My Accountant/Bookkeeper Ask for My ID?
Because the law requires it. They aren’t asking out of curiosity or bureaucracy—they’re following regulations set out by HMRC.
Think of it like airport security. The airline doesn’t check your passport for itself—it checks it because regulations demand it. The same applies here: your accountant or bookkeeper is obliged to check you are who you say you are before they can work with you.
The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.
