What is an AML check?
An AML check is a thorough process used by companies to make sure their customers are not involved in money laundering or supporting terrorism. It includes checking the customer's identity and reviewing their transactions for any suspicious activity. This isn't just good practice but required by law to help prevent financial crime. If companies don't carry out these checks properly, they could face serious fines and damage their reputation.
What information is needed to complete an AML check?
For AML checks a customer typically needs to provide personal identification details such as
- Name
- Date of birth
- Address.
Official documents like a passport or driving licence are often required to confirm your identity. Additionally, information about financial activities, including the source of a customer’s funds, may be needed to complete the check thoroughly.
Who should implement AML checks?
Any financial institution or company regulated by the FCA is required by law to carry out KYC, KYB, and AML checks with the goal of reducing illegal financial activity.