Know Your Client (KYC) and Anti-Money Laundering (AML) Requirements

In recent years, the UK has significantly increased scrutiny around money laundering. Now, UK regulations require all company directors and PSCs (Persons of Significant Control) to verify their identity. This is part of the Economic Crime and Corporate Transparency Act (ECCTA) to help prevent fraud and money laundering. 

In line with this, Companies House has implemented new reporting obligations for all directors of UK companies. 

As an ICAEW-accredited firm, we take our AML (Anti-Money Laundering) and KYC (Know Your Client) responsibilities seriously. We have implemented a KYC process to manage both new client onboarding and ongoing AML compliance checks. 

Why Is the KYC Process Important?

As accountants, we are legally required to verify the identity and ownership of the businesses we work with. Specifically, we must: 

  • Identify directors of the company
  • Identify any person, company, trust, or other entity that ultimately owns more than 25% of the business.
  • Hold evidence of the ownership structure to help detect any hidden beneficial owners.

Documents We Require

1. For Companies

We require:

  • A certificate of incorporation
  • A current share-ownership breakdown

Typically, we can obtain your UK company’s incorporation documents and ownership information directly from public records (e.g. Companies House in the UK) without bothering you.

2. For Individual Directors and Shareholders

We require the following externally certified and current documents:

  • Proof of Identity
    Government-issued ID with your full name and photograph – e.g. passport or driving licence
  • Proof of Address
    No older than 3 months. Acceptable documents include:
    • Utility bill
    • Driving licence (if it shows your address)
    • Letter from tax authorities
    • Bank statement
  • Your Companies House personal authorisation code.

What Does “Externally Certified” Mean in This Context?

Externally Certified means that a document has been certified a true likeness of the original document by either a lawyer, accountant, notary, doctor, police officer or post office official).

A document can be externally certified by us or another professional.

Documents that are Externally Certified by Metric Accountants

To certify your documents, please:

  1. Send us scans of the documents.
  2. Attend a video call with a representative from Metric Accountants.
  3. Show the original documents on camera.

Once these three steps are completed, we can certify the documents ourselves.

Documents Externally Certified by another professional

If this is impractical, you must send us externally certified hard copies by post. The certifier must sign the documents in ink (photocopies or scans of signed copies will not be accepted). Alternatively, your lawyer or accountant may email the certified documents to us directly from their email address (not yours).

If that is not possible, your lawyer or accountant can write directly to us confirming ownership. For example:

•           “Only Ms X and Mr Y own more than 25% of Z Ltd, each holding 35%.”

•           “There are no individuals or businesses owning more than 25% of Z Ltd.”

Examples of Acceptable Combinations

  • Passport (certified) + utility bill (gas, water, electricity – less than 3 months old):  OK
  • Driving licence (with name, photo, and address):  OK
  • Driving licence (without address) + bank statement or tax letter (less than 3 months old):  OK
  • Driving licence (without address) and no additional evidence:  NOT OK

If you’re unsure whether your documents meet the requirements, don’t hesitate to ask — we’re here to help.