Key takeaway: UK accounting practices are legally required to conduct anti-money laundering checks on clients — yet most struggle to keep on top of them. Embedding AML compliance directly into practice management software transforms this from an overlooked admin burden into a streamlined, automated part of the client lifecycle.
UK accounting practices that fall under the Money Laundering Regulations 2017 (MLR 2017) must conduct client due diligence checks before onboarding new clients and repeat them regularly thereafter. For most practices, however, AML compliance sits awkwardly outside their day-to-day workflows: a legal obligation managed through spreadsheets, manual reminders, and chased paperwork. The result is that checks get done at the start and then quietly forgotten.
BrightManager, Bright’s practice management tool, changes that by bringing AML checks into the same system accountants already use to quote, onboard, and manage clients.
AML Compliance Is a Legal Requirement
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 apply to all accountancy service providers in the UK, including sole practitioners, small practices, and large firms. HMRC supervises many accountants directly under these regulations, and the penalties for non-compliance are significant.
Under MLR 2017, practices must:
• Verify the identity of clients before providing services
• Assess the risk that each client or matter could be used for money laundering or terrorist financing
• Conduct enhanced due diligence on higher-risk clients
• Keep records of the checks performed and the evidence gathered
• Monitor ongoing client relationships and repeat checks where there is a material change or on a regular cycle
That last point is where most practices fall short. Initial checks at onboarding are reasonably well understood. Ongoing monitoring, particularly annual or periodic re-checks of the client base, is the gap. It is not that practices are indifferent to compliance; it is that without a structured process, it simply does not happen consistently.
Embedding AML Checks Into Your Practice Management Workflow Closes the Gap
The logic is straightforward. Accountants already use practice management software to quote for new clients, send engagement letters, record contact details, and manage ongoing work. All of the information needed to conduct a meaningful AML check — client name, business type, services requested, risk indicators — is already in that system.
BrightManager, Bright’s practice management tool, puts AML checks at the point in the workflow where they are most natural: during client onboarding. When a new client quote progresses to engagement, the information captured in the quoting and onboarding process is immediately available to support the due diligence check. There is no need to re-enter data, hunt through emails, or switch between systems.
This matters for three reasons:
- Completeness. The information needed to assess client risk is already to hand — registered address, business activity, the services being engaged for, and any notes from the initial conversation.
- Accountability. AML tasks are assigned, tracked, and recorded in the same system used to manage all client work. There is a clear audit trail showing when a check was completed and by whom.
- Consistency. Every new client goes through the same process, because the workflow makes it a required step rather than an optional one.
For practices subject to HMRC supervision, this kind of documented, repeatable process is exactly what supervisory visits are looking for.
Automation Means Annual AML Reviews Actually Happen
Initial onboarding checks are one thing. The harder problem is ongoing monitoring.
Best practice guidance from bodies including ICAEW and ACCA is clear: client due diligence should not be a one-time event. Risk profiles change — businesses restructure, ownership changes, the nature of services evolves. Annual reviews are widely recommended as a minimum for the general client base, with more frequent reviews for higher-risk clients.
In practice, very few firms do this consistently. The reason is not ignorance of the requirement — most practitioners know they should be reviewing clients annually. The reason is that without a system to prompt the check, it falls off the list. There are client deadlines, tax returns, payroll runs. An AML review for a client who onboarded two years ago simply does not rise to the top.
BrightManager, Bright’s practice management tool, addresses this through workflow automation. Rather than relying on a partner to remember, the software creates a task automatically — triggered by the anniversary of the original check, or on a schedule set by the practice. The accountant receives a clear, actionable prompt: this client is due for their annual AML review.
This shift (from discretionary to automatic) is significant. The annual check does not depend on memory, goodwill, or a spreadsheet someone has to update manually. It is built into the system.
Automation Goes Further: Drafting the Client Communication for You
There is a second layer of automation that takes the friction out of AML reviews even further.
One reason annual re-checks are delayed is the correspondence they require. Asking a client to re-confirm their identity, explain a change in their business structure, or provide updated documentation can feel awkward — particularly for long-standing clients. Writing the email from scratch each time adds to the friction.
BrightManager, Bright’s practice management tool, can generate the client-facing email as part of the automated workflow. When the AML review task is triggered, the software drafts the communication automatically — pulling in the client’s name, the relevant details, and the specific information or documentation being requested. The accountant reviews it, makes any adjustments, and sends.
The outcome is that completing an AML review is reduced to a single decision: press send. The system has already done the preparation.
This is not a trivial improvement. In a firm with hundreds of clients, the cumulative time saved across annual reviews is substantial. More importantly, it means compliance actually happens — not because the team is more diligent, but because the process is designed so that doing nothing takes more effort than completing the check.
What Good AML Practice Looks Like in BrightManager
For practices looking to use BrightManager, Bright’s practice management tool, to strengthen their AML compliance, the workflow looks like this:
- New client quoting — Risk indicators are noted during the initial client intake, captured alongside the quote
- Onboarding — An AML check task is generated automatically as part of the engagement setup; the accountant completes the check with all relevant client information already visible in the system
- Ongoing monitoring — Annual review tasks are created automatically for each client, based on the date of the last check
- Client communication — The system drafts the review email; the accountant approves and sends
- Record-keeping — All checks, outcomes, and correspondence are logged in the client record, creating a clear audit trail.
This is a closed loop, from onboarding through ongoing review, managed inside the same tool used to run the practice.
Frequently Asked Questions
What are the AML requirements for UK accounting practices?
Under the Money Laundering Regulations 2017, accounting practices must verify client identity, assess money laundering risk, conduct enhanced due diligence on higher-risk clients, and monitor ongoing relationships. HMRC supervises many accountancy service providers directly and can issue fines for non-compliance. Practices must also keep records of all checks performed.
How often should accounting practices repeat AML checks on existing clients?
There is no single mandated frequency for repeat checks, but guidance from ICAEW and ACCA recommends reviewing client due diligence at least annually, or whenever there is a material change in the client’s circumstances — such as a change in ownership, business activity, or the services being provided. Higher-risk clients should be reviewed more frequently.
Why do practices struggle with ongoing AML compliance?
The most common reason is the absence of a structured process. Initial onboarding checks tend to be completed, but ongoing reviews rely on manual reminders or spreadsheets that are easy to overlook when competing with day-to-day client work. Without automation, annual re-checks simply do not happen consistently.
How does practice management software help with AML compliance?
Practice management software like BrightManager, Bright’s practice management tool, embeds AML checks into the client onboarding workflow and automates the creation of annual review tasks. Because all client information is already in the system, accountants can complete checks without switching tools or re-entering data. Automation ensures checks are not forgotten, and the audit trail supports regulatory supervision.
What information does a practice need to conduct an AML check on a new client?
At a minimum, practices need to verify the client’s identity (name, address, and identity documents for individuals; company registration and beneficial ownership details for corporate clients), understand the nature and purpose of the engagement, and assess any risk factors relevant to money laundering. Practice management software that captures this during quoting and onboarding makes the check significantly faster to complete.
Does using software for AML checks satisfy regulatory requirements?
Software supports compliance but does not replace the professional judgement of the accountant. The check itself — the risk assessment, the decision on what due diligence is required, and the review of any documentation — remains the responsibility of the practice. What software does is ensure checks are structured, prompted, completed, and recorded consistently, which is exactly what regulatory supervisors look for.
To find out how BrightManager, Bright’s practice management tool, can help your practice manage AML compliance as part of your day-to-day client workflows, get in touch with the Bright team.
