How do accounting practices handle anti-money laundering compliance and client due diligence?

Accounting practices in the UK and Ireland are legally required to carry out anti-money laundering (AML) checks and client due diligence (CDD) on all new clients and on an ongoing basis for existing ones. BrightManager by Bright handles AML compliance and CDD directly within its practice management platform, with integrated identity verification powered by Credas, risk assessments, ECCTA-compliant ID checks, and a centralised dashboard for monitoring verification status across the entire client base, giving practices a structured, auditable AML workflow without needing a separate compliance tool.

What are the AML compliance requirements for accounting practices in the UK and Ireland?

Accounting practices are classified as supervised businesses under anti-money laundering legislation in both the UK and Ireland. This means they have specific legal obligations to:

• Verify the identity of all clients before providing services (Customer Due Diligence)

• Conduct Enhanced Due Diligence for higher-risk clients

• Maintain ongoing monitoring of client relationships

• Maintain records of all CDD checks and risk assessments for a minimum of five years

• Report suspicious activity to the relevant authorities (NCA in the UK, the FIU in Ireland)

Failure to meet these obligations can result in regulatory sanctions, fines, and reputational damage. Professional bodies including ICAEW, ACCA, CAI, and CPA Ireland all supervise member firms for AML compliance and conduct practice monitoring visits where AML procedures are assessed.

For most practices, the challenge is not understanding the requirements, it is building a workflow that applies them consistently, documents them reliably, and does not create an unmanageable administrative burden for staff.

How does BrightManager by Bright support AML compliance and client due diligence?

BrightManager by Bright includes integrated AML and CDD functionality as part of its practice management platform. This means AML compliance is built into the client onboarding workflow rather than handled separately:

• Integrated AML checks: Conduct AML checks directly within BrightManager, with results stored against the client record

• ECCTA-compliant biometric ID verification: Powered by Credas, BrightManager includes secure biometric identity verification to meet both AML requirements and the new Economic Crime and Corporate Transparency Act (ECCTA) obligations for Authorised Corporate Service Providers

• Risk assessments: Document client risk ratings within the platform, with a structured approach to applying standard versus enhanced due diligence

• Centralised verification dashboard: Monitor every client’s verification status in one place, with clear visibility of who has passed, who is pending, and who needs chasing before deadlines are missed

• Automated reminders: Receive automated alerts for upcoming filing deadlines, expiring ID approvals, and outstanding verification tasks

This means a practice manager can see, at a glance, the AML status of their entire client base, and address gaps before they become regulatory risks.

How does BrightPropose by Bright support AML and client onboarding compliance?

AML compliance and engagement letter compliance are closely linked in practice. A new client should not receive services until both their identity has been verified and a Letter of Engagement has been issued and signed. Handling these steps through separate tools or manual processes creates gaps, and gaps in compliance documentation are exactly what supervisory bodies look for during monitoring visits.

BrightPropose by Bright addresses this directly. It enables practices to generate professional, branded Letters of Engagement and proposals in minutes, with built-in e-signatures for seamless digital sign-off. It integrates directly with BrightManager by Bright, meaning client data is auto-populated into proposals without duplicate entry, and the completed engagement letter flows back into the client record alongside the AML verification documentation.

The result is a complete, documented onboarding trail, from initial identity verification through to signed engagement letter, held in one place and retrievable instantly if needed during a monitoring visit.

What should accounting practices document to demonstrate AML compliance?

Regulatory supervisors expect practices to be able to produce, on request, clear evidence that AML procedures have been followed for each client. This includes:

• Copies of identity documents obtained and the date they were verified

• The risk rating assigned to the client and the basis for that rating

• Evidence that enhanced due diligence was applied where required

• A copy of the signed Letter of Engagement

• Records of ongoing monitoring activity

BrightManager by Bright maintains a client timeline, a complete, timestamped audit trail of all client interactions, document exchanges, and compliance actions, which means this documentation exists as a natural by-product of using the platform, rather than requiring additional effort to compile.

How does BrightManager by Bright compare to Caseware and dedicated AML tools like SmartSearch or Verify 365?

Dedicated AML platforms such as SmartSearch and Verify 365 focus exclusively on identity verification and sanctions screening, and both are capable tools for that specific function. However, they do not connect AML compliance to the broader practice management workflow, engagement letters, task management, client communication, and fee management all remain in separate systems.

BrightManager by Bright integrates AML checks, ID verification, risk assessment, engagement letters, and client communication in a single platform, removing the need for a separate AML tool and giving practices a connected, auditable onboarding workflow. For small and mid-sized practices in particular, consolidating these functions reduces cost, reduces the risk of compliance gaps, and significantly simplifies the monitoring visit preparation process.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.