Recent discussions with colleagues in the accountancy sector have been dominated by the new client due diligence identity and anti-money laundering checks they need to undertake, mostly dictated by the Economic Crime and Corporate Transparency Act (ECTA) and the Anti-Money Laundering (AML)Regulations which seek to address the alarming rise in the level and sophistication of identity and financial fraud.

These extra precautions have somewhat added to the workload, not just because of the additional tasks involved but for the resulting need to adopt some form of software to carry out remote ID, KYB, KYC, Source of Funds and PEPs and Sanctions checks and to automate their ongoing monitoring requirements which can be so burdensome when carried out manually.

There is guidance available from the Consultative Committee of Accountancy Bodies (CCAB), the umbrella organisation for the five main accountancy organisations in the UK which explains how to carry out the appropriate due diligence on clients, what to check and under what circumstances.

In this blog, we demonstrate how using a Government certified Identity Service Provider (IDSP) like VSiD can help automate all the necessary tasks and provide a high level of confidence that the person or business you are dealing with is who they say they are and gives you the tools to report any suspicion of money laundering or identity fraud.

The guidance outlines the required components of good CDD, and these include

Identifying the client (i.e. knowing who the client is)

There are two levels of identity check, “Advanced” and “Qualified”, with Qualified being the most reliable.  This means that your client takes a 3D video liveness “selfie”, scans the photo page of their ePassport and uses their smart phone’s Near Field Communication (NFC) technology to read the eChip embedded inside their passport.  Biometric facial recognition, geo-location, anti-spoof and anti-tamper technology are used to ascertain the true identity of the person.

In circumstances where clients do not have an ePassport, you can still use an Advanced ID check, which is the same process as above, without the requirement to read the passport eChip, or for the client to be seen in person.

Both processes are simple, fast and easy to do whilst uniquely linking the individual to any document, eSignature or matter. It also generates a certified decision-making report that shows a pass, fail and/or flag any areas of concern that may need further investigation.

Using either of these methods means the client does not have to attend your offices and can carry out the check remotely and you can rest assured that you have identified them with a high level of confidence and demonstrate the fact to any relying party by way of a unique and reverifiable authentication certificate provided by us.

Identifying the BO(s)

Opting for a SmartComply licence will enable you to carry out Companies House checks, to confirm and identify business owners and persons with significant control for your KYC and KYB checks. You will also be able to check Source of Funds and international PEPs and Sanctions as VSiD links with a variety of data providers, like Experian, TransUnion and CreditSafe.

With its connection to Open Banking, VSiD’s proprietary software will alert you to any unusual or suspicious financial activity, confirm bank account ownership and allow your client to instantly supply historic bank statements.

Ongoing Monitoring

There is a new requirement to keep on top of the CDD at least annually and you will want to know if there have been any changes to your client’s status.  This is where an ongoing monitoring solution will take the headache away and alert you automatically when there has been a change or reason for concern. This is an invaluable tool that will save your practice hours of time and resource and one that allows you to demonstrate to your regulators that you have taken appropriate steps to reduce risk.

Reassurance For Your Clients

It’s worth noting that your clients will not need to download an app for a check using the VSiD platform, unless they are following the Qualified (NFC) route.

It can also be beneficial to make use of our branding feature which will ensure that your clients are reassured when they receive notifications from you throughout their onboarding journey. For firms with subsidiaries, VSiD allows the use of multiple logos and company names within one licence in addition to unlimited users.

Unlike other providers, VSiD can help clients create an automated workflow, incorporating eSignatures, ID checks and background screening with the clever use of dynamic, AI driven SmartForms which are tailored for their specific needs, as well as offer a multitude of features that reduce frustration, like the ability to process very large files up to 200MB, or set the sequence of signatures and time critical authorisations.  These niche features can be invaluable at year end when filing with Companies House or HMRC.

Ensuring your practice is meeting its regulatory compliance obligations need not be expensive or time-consuming and VSiD can easily plug our API into your existing system or client web journey if preferred.  The team have in depth knowledge of AML and KYC regulations and will be happy to guide you through a demonstration of our features or set you up with a free trial.

For more information call us on 0207 7965 7479 or complete our contact form.  You can also follow us on LinkedIn for news and updates.