ACSP Compliance Checklist for Accountants and Service Providers: Avoiding Common Mistakes in Client ID Verification

Ensuring compliance as an Authorised Corporate Service Provider (ACSP) has never been more important. With the UK government tightening regulations around company formation and corporate transparency, service providers and accountants must stay vigilant. One of the most critical components of compliance is client ID verification, which protects your firm from regulatory penalties and reputational risks. 

In this article, we explore the common pitfalls in client ID verification and provide a practical checklist to ensure your ACSP obligations are fully met. 

Understanding ACSP Obligations 

An ACSP is responsible for maintaining high standards of corporate governance and compliance when onboarding clients. The key responsibilities include: 

• AML supervision: Ensuring your firm complies with anti-money laundering regulations. 
• Client ID verification: Verifying the identities of directors, persons with significant control (PSCs), and beneficial owners. 
• Accurate record-keeping: Maintaining secure and retrievable client records for at least seven years. 
• Secure data management: Handling sensitive information safely, with clear audit trails. 

Meeting these obligations manually can be time-consuming and prone to error. This is where technology, such as FigsFlow, becomes invaluable, helping ACSPs maintain compliance while reducing administrative burdens. 

Common Mistakes in Client ID Verification 

Even experienced service providers can fall into common traps when verifying clients’ identities. These include: 

• Poor document authentication: Accepting low-quality scans or unofficial documents. 
• Incomplete KYC checks: Failing to verify all beneficial owners or missing essential documentation. 
• Inadequate record-keeping: Not storing information securely or in a retrievable format. 
• Lack of audit trail: No clear record of who verified what, and when. 
• Over-reliance on manual processes: Increases human error and slows client onboarding. 

These mistakes can result in delays, penalties, or reputational damage — risks that any ACSP should avoid at all costs. 

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ACSP Compliance Checklist 

To help avoid these pitfalls, here is a practical ACSP compliance checklist for accountants: 

1. Confirm your ACSP registration and ensure it is up to date. 
2. Collect all required identity documents from directors and PSCs. 
3. Verify documents against official sources, following AML standards. 
4. Maintain digital records securely for at least seven years. 
5. Ensure a clear audit trail is in place for all verifications. 
6. Schedule periodic internal reviews and compliance audits. 
7. Train staff regularly on client ID verification best practices. 

By following this checklist, ACSPs can maintain compliance and mitigate risks associated with identity verification errors. 

How FigsFlow Simplifies ACSP Compliance 

FigsFlow is designed to make life easier for accountants operating as ACSPs. Key features include: 

• Integrated client ID verification: Automates checks to verify directors, PSCs, and beneficial owners efficiently. 
• Built-in AML compliance: Ensures your firm meets all regulatory requirements. 
• Secure record-keeping: Digital storage of documents with complete audit trails. 
• Compliance dashboards: Monitor the status of all clients in one central location. 

For example, a service provider using FigsFlow can reduce errors in client ID verification by over 90%, freeing up valuable time to focus on client relationships and business growth. 

Conclusion 

Staying compliant as an ACSP requires diligence, attention to detail, and robust processes for client ID verification. Avoiding common mistakes not only protects your firm from regulatory issues but also enhances your credibility with clients. 
Learn More About ID Verification Mistakes In AMl.

With FigsFlow, accountants can streamline the verification process, maintain compliance effortlessly, and ensure their ACSP obligations are always met.