There is a quiet assumption in many small accountancy practices across the UK.
“We know our clients.”
They have been introduced through trusted networks. They have been with the firm for years. They appear legitimate, organised and professional. A passport copy is taken. A utility bill is filed. A basic electronic check may be run. The onboarding box is ticked.
It feels compliant. Except it may not be.
The regulatory landscape has changed. Financial crime has evolved. And the gap between traditional KYC processes and modern compliance expectations is growing wider every year.
Most small accountancy firms are still meeting 2026 regulatory obligations with processes designed more than a decade ago. That gap creates risk.
How KYC is actually being done
In many small firms, the process remains largely manual.
A client emails a passport scan. A staff member visually inspects it. A PDF is stored in a folder. Perhaps a low-cost electronic ID check confirms name and address data. A note is added to the file confirming that identification has been verified.
The intention is good. The documentation exists.
But what has truly been verified?
- Was the document authentic?
- Was the person presenting it genuinely the holder?
- Was the individual screened against sanctions lists?
- Is there an audit trail robust enough to withstand scrutiny?
Manual checks create paperwork. They do not always create protection.
The issue is not carelessness. It is legacy infrastructure. Many smaller firms built their AML frameworks when digital fraud was less sophisticated and supervisory expectations were less intense. Today, synthetic identities, deepfake technology and AI-generated documentation are increasingly common.
Visual inspection alone is no longer sufficient.
Why the risk is increasing
Supervisory bodies expect more than evidence that checks were completed. They expect firms to demonstrate that their processes are proportionate, risk-based and defensible.
When enforcement action occurs, the question is rarely:
“Did you take a copy of the passport?”
It is:
“Was your verification process adequate for the risk presented?”
For small accountancy firms, the consequences can extend well beyond inconvenience.
Financial penalties for AML failures can reach tens of thousands of pounds for smaller practices, and significantly more in serious cases. Public reprimands are published. Firms can face enhanced supervision, mandatory remediation programmes, and in extreme cases, loss of practising rights.
Even where fines are manageable, the reputational impact can be far more damaging.
There is also a broader operational risk. Accountants sit at the centre of company formation, tax structuring and financial reporting. Weak identity verification can allow shell companies or fraudulent directors to pass through onboarding unnoticed.
Trust is the foundation of the profession. Weak KYC quietly undermines it.
The overlooked vulnerability: Storage and resilience
There is another question many firms do not ask. Where are your KYC records stored?
- In paper files?
- On a shared drive?
- In generic cloud storage?
If a regulator requests evidence three years from now, can you retrieve it instantly, in a structured and defensible format?
If your office suffers a fire, flood, cyber incident or data corruption event, are your records protected to a regulatory standard?
- Paper files can be destroyed.
- Local storage can be lost or corrupted.
- Basic cloud storage does not automatically mean encryption, tamper protection or structured audit logging.
Compliance is not complete when a check is performed.
It is complete when the evidence is securely stored, encrypted, retrievable and defensible under scrutiny.
This is where governance becomes infrastructure.
The false choice facing small firms
For years, small practices have felt stuck between two options.
- Manual processes that are affordable but fragile.
- Enterprise-level identity platforms designed for banks that are powerful but complex and costly.
It has often felt like a choice between under-compliance and over-engineering.
That is no longer the case.
Goidentity offers enterprise-grade verification built specifically for SMEs. The technology that once belonged only to major financial institutions is now accessible, scalable and proportionate.
What modern KYC should look like
Identity verification today should confirm more than whether a document looks genuine.
- It should confirm that the document itself is authentic.
- It should verify that the person presenting it is genuinely the holder.
- It should screen against sanctions and politically exposed person lists.
- It should create a structured, audit-ready record.
- It should reduce onboarding friction rather than increase it.
Compliance should be rigorous, but seamless. When done correctly, it protects the firm without disrupting the client experience.
How Goidentity changes the equation
Goidentity was built around a simple principle. Small and mid-sized organisations should have access to the same advanced identity verification technology used by major institutions, without the complexity or cost burden.
Powered by Thales biometric and encryption technology, Goidentity combines facial recognition and secure document authentication within a mobile-first experience. Clients complete verification through a streamlined app journey. Firms receive structured, downloadable KYC reports via a straightforward dashboard.
For an accountancy practice, this changes the dynamic entirely.
- Onboarding becomes faster and more consistent.
- Biometric verification confirms the person behind the document.
- AML and sanctions screening can be embedded within the process.
- An audit trail is automatically generated and stored securely.
Compliance shifts from manual administration to controlled digital infrastructure.
Importantly, Goidentity is designed for SMEs. It offers flexible, scalable pricing and does not require heavy technical integration. Firms can strengthen compliance without creating operational disruption.
The question that matters
The real question for small accountancy firms is not:
“Are we completing KYC checks?”
It is:
“If challenged tomorrow, could we confidently defend our process?”
The regulatory environment will continue to tighten. Fraud will continue to evolve. Expectations will continue to rise.
Modernising KYC is not about reacting to fear. It is about building resilience and strengthening trust. For small accountancy firms seeking a practical, proportionate and future-ready approach, Goidentity offers a clear path forward.
The firms that act now will not only reduce risk, but they will also reinforce the trust that defines their profession.