COMPLIANCE
Key AML lessons The Institute of Accountants and Bookkeepers (IAB) shares the experience of Iwona Iwanicka, Managing Director, Iwona Accountancy Services Ltd, regarding two separate anti-money laundering (AML) inspections, which turned out very differently
W hen I had my first AML inspection over three years ago, it was an eye- opening experience. Having run my practice for over a decade, with seven employees and more than 200 clients, I thought I had been managing AML compliance fairly well. However, the inspection revealed otherwise. The process was far more thorough than I had anticipated, lasting four hours and involving a series of detailed and challenging questions. I naively hoped the report would suggest only minor improvements. Instead, I was faced with eight mandatory actions and a sobering “Requiring improvement” assessment. It was a stark wake-up call for me and my practice.
operated with integrity and met regulatory standards. To tackle this challenge, I engaged external consultancy support to help us navigate the process and implement the necessary improvements. “As these procedures became ingrained in our daily operations, their value became increasingly evident” One of the first steps I took was a full audit of my client base. This included categorising each client based on risk levels and developing a detailed risk register. This exercise not only helped me prioritise compliance efforts but also provided a clear overview of where vulnerabilities might lie. To enhance and streamline our compliance processes, I turned to technology. I adopted SmartSearch, which offered robust AML tools, such as:
l know your customer checks l politically exposed persons
and sanctions screening l ongoing monitoring l enhanced due diligence. Its live alerts and facial recognition features brought a new level of accuracy and efficiency to our operations, saving countless hours of manual work. Additionally, I implemented AML Complete, a platform that provided regular due diligence alerts, a sophisticated risk assessment module and comprehensive staff training resources. These tools not only bolstered our compliance measures but also empowered my team with the knowledge and confidence to handle AML responsibilities effectively. Embedding AML into everyday practice At first, integrating these changes into our business was a significant challenge. It required a considerable investment of time, effort and resources, which felt daunting. However, as these procedures became ingrained in our daily operations, their value became increasingly evident.
Turning challenges into opportunities
The outcome of the inspection forced me to take a hard look at how my business approached AML compliance. Initially, the magnitude of the changes required felt overwhelming. Yet, I knew these changes were essential to ensure my practice
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 22
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