KYC Process for Accountants: Step-by-Step AML Guide
In brief: A good KYC process for accountants verifies who the client is, who controls the client, why the firm is acting, what risk applies, and what evidence supports the decision.
Key points
- KYC is one part of customer due diligence, not the whole AML file.
- Company clients usually need KYB and checks on relevant individuals.
- The process should end with a risk decision and review trigger.
What is the KYC process for accountants?
The KYC process for accountants is the practical workflow used to identify and verify clients before and during a relationship. For an individual, that means identity and address evidence. For a company, it also means understanding the business, ownership, control, and relevant individuals.
Step-by-step workflow
- Identify the client and matter.
- Verify the individual or business.
- Identify beneficial owners and controllers.
- Understand the purpose and expected activity.
- Screen relevant parties for PEP, sanctions, and adverse media exposure.
- Assess client risk.
- Request enhanced evidence where risk requires it.
- Record the decision and review trigger.
Evidence checklist
Keep identity results, company records, ownership notes, screening results, risk assessment, source-of-funds evidence where needed, and the acceptance decision.
This guide is general information, not legal advice. Apply it through the Money Laundering Regulations 2017, supervisor guidance, and the firm's own risk-based AML procedures.