What AML checks are required on companies?

Under the UK Money Laundering Regulations 2017, regulated firms must identify and verify: the legal entity itself, its registered office, its directors, its beneficial owners (persons with significant control), the source of funds and wealth, and screen against sanctions lists and PEP databases. Enhanced due diligence is required for high-risk situations including complex ownership structures, companies in high-risk jurisdictions, or where the beneficial owner cannot be identified.

Who needs to do AML checks?

All firms supervised under the Money Laundering Regulations 2017 must perform AML checks. This includes: accountants, solicitors, estate agents, banks and financial institutions, high-value dealers (accepting cash payments over 10,000 euros), crypto-asset firms, trust and company service providers, tax advisors, and insolvency practitioners. Failure to comply can result in unlimited fines, criminal prosecution, and loss of professional registration.

What does an AML company check include?

A proper AML company check includes: verification of the legal entity at Companies House, identification of all directors and their appointment history, identification of persons with significant control (beneficial owners), source of funds verification, sanctions screening, PEP checks on all directors and beneficial owners, and adverse media screening. RecoupIQ goes further by mapping the full director network, detecting nominee structures, and identifying shell company patterns using 72 machine-learning signals.

How often should AML checks be refreshed?

The regulations require ongoing monitoring, not just point-in-time checks. You must refresh your AML due diligence when: the business relationship changes materially, you become aware of changes to the company structure, at least annually for high-risk clients, and whenever you have doubts about previously obtained information. RecoupIQ Pro (£149 per month) provides continuous monitoring with automatic alerts when company status, directors, or ownership changes.

What happens if you fail to do AML checks?

Penalties for AML non-compliance in the UK include: unlimited fines from your supervisory body (HMRC, FCA, SRA, or relevant professional body), criminal prosecution of senior managers, loss of professional registration or authorisation, reputational damage and loss of clients, and personal liability for officers of the firm. In 2024 alone, UK regulators issued over £100 million in AML-related fines.

Can RecoupIQ replace my AML provider?

RecoupIQ complements your AML obligations by providing deeper intelligence than basic KYB providers. It adds director network mapping, phoenix detection, shell structure identification, and ongoing monitoring across 72 ML signals and 12 live data sources. However, RecoupIQ does not replace your obligation to conduct your own risk assessment, file SARs, or maintain your own AML policies and procedures. It is a powerful tool within your compliance framework, not a substitute for it.

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Compliance

AML Company Check: What You Need and How to Do It

The UK Money Laundering Regulations 2017 require regulated firms to verify companies before entering a business relationship. Most providers give you the minimum. Here is how to go deeper.

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Who must perform AML checks on companies?

If your firm is supervised under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, you are required to perform customer due diligence on every company you do business with. The regulated sectors include:

Accountants and tax advisors (supervised by HMRC or professional body)
Solicitors and legal professionals (supervised by SRA, CLC, or BSB)
Estate agents (supervised by HMRC)
Banks and financial institutions (supervised by FCA)
High-value dealers (accepting cash over 10,000 euros)
Crypto-asset firms (supervised by FCA)
Trust and company service providers (supervised by HMRC)

What an AML company check must include

Customer due diligence on a company requires you to identify and verify the following:

Legal entity and registered office

Verify the company exists at Companies House, confirm its registered address, incorporation date, and current status (active, dissolved, in liquidation).

Directors and officers

Identify all current directors, their appointment dates, and residential status. Check for disqualification orders and cross-reference against sanctions lists.

Beneficial owners (persons with significant control)

Identify all PSCs holding more than 25% of shares or voting rights. Verify their identity and assess whether nominee arrangements are in place.

Source of funds and wealth

Understand how the company generates revenue, where its capital originates, and whether the stated source is consistent with the company profile.

Sanctions and PEP screening

Screen all directors and beneficial owners against UK, EU, and UN sanctions lists. Check for politically exposed persons and their associates.

The problem with basic AML providers

Most AML and KYB providers check the PSC register and stop. They confirm who is listed as a beneficial owner, run a sanctions screen, and hand you a certificate. That satisfies the minimum requirement. It does not protect you.

What basic providers miss:

Nominee structures

A listed PSC may be a nominee. Basic providers accept the register at face value. They do not check whether the same person appears as PSC across dozens of unrelated companies.

Layered ownership

Corporate PSCs (companies owning companies) are common in money laundering. Basic checks stop at the first layer. They do not trace the chain to the ultimate beneficial owner.

Director network risk

A director with five dissolved companies in the past three years is a red flag. Basic AML providers do not map director histories or quantify failure rates across the network.

Shell structure patterns

Dormant companies with no trading history suddenly acquiring assets. Companies incorporated days before a transaction. These patterns indicate potential laundering vehicles.

What RecoupIQ adds beyond basic AML

RecoupIQ analyses 72 machine-learning signals across 12 live data sources to give you intelligence that basic KYB providers cannot match:

Director network intelligence: full graph mapping of every director connection, appointment history, and cross-company relationships
Dissolved company patterns: directors linked to previously failed, struck-off, or liquidated entities
Phoenix detection: ML models trained on 16.9 million UK companies to identify directors reopening under new names
Cross-referencing 72 signals across 12 sources: gazette notices, charges, CCJs, filing behaviour, compliance registers, and more
Ongoing monitoring (not just point-in-time): continuous alerting when ownership, directors, or company status changes

Use cases: when regulated firms need deeper checks

Solicitor onboarding a corporate client for a property purchase

The SRA requires enhanced due diligence on property transactions. You need to verify the buying company, trace its beneficial owners, and confirm the source of funds. RecoupIQ maps the full network behind the entity so you can document your CDD properly.

Accountant taking on a new company client

Before you accept an engagement, you must assess ML/TF risk. A company with dormant filing history, recently appointed directors, and a PSC registered at a virtual office warrants enhanced due diligence. RecoupIQ surfaces these indicators automatically.

Estate agent verifying a corporate buyer

Property is a known laundering vehicle. When a company (not an individual) is buying, you need to identify the ultimate beneficial owner and verify the source of funds. Basic checks miss nominee structures. RecoupIQ does not.

Financial services firm doing enhanced due diligence

High-risk clients require EDD. You need more than a name match on the PSC register. RecoupIQ provides the director network analysis, failure pattern detection, and ongoing monitoring that EDD demands.

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Ongoing monitoring: AML is not one-and-done

The regulations are clear: customer due diligence does not end at onboarding. You must conduct ongoing monitoring of the business relationship, including scrutiny of transactions and keeping documents and data up to date. If a client company changes directors, ownership structure, or status, you need to know.

RecoupIQ Pro (£149/mo) provides continuous monitoring that alerts you to changes in company status, director appointments and resignations, gazette notices (including winding-up petitions), ownership changes, new charges, and compliance register updates. You get notified when something changes, not months later when you happen to review the file.

Go deeper than basic AML checks

72 risk signals. Director network intelligence. Phoenix detection. Shell structure identification. From £29 per check or £149/mo for ongoing compliance monitoring across your entire client book.

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AML checks for your compliance team (from £149/mo)

Deploy Trust Check across your compliance team via Microsoft 365. Per-seat access to company checks, director network mapping, and ongoing monitoring directly in Teams and Outlook. RecoupIQ is a Microsoft partner, and Pro and Business plans include team deployment.

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Important: RecoupIQ complements your AML obligations

RecoupIQ provides intelligence to support your due diligence process. It does not replace your firm's obligation to conduct risk assessments, maintain AML policies, train staff, appoint an MLRO, or file Suspicious Activity Reports (SARs) with the NCA. You remain responsible for your own compliance framework.

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Last reviewed: July 2026. General information for UK regulated firms. Not legal advice and not a substitute for your own AML compliance programme. RecoupIQ Ltd, Company No. 16947526, ICO ZC077511. Microsoft Partner.