AML Essential Kit - Client data collection

Client data collection is the first phase of anti-money laundering (AML) due diligence. Before verifying identity or assessing risk, you must first gather all the relevant information about your client — who they are, how their business operates, and what the expected nature of your relationship will be. This includes collecting basic identification details, understanding the structure of any legal entity, and clarifying who owns or controls the client’s business. Data collection lays the groundwork for everything else in your AML process: ID checks, client risk assessments, and ongoing monitoring. Without accurate and complete data, those later steps become guesswork.

Why it matters

A strong data collection process is essential for complying with Regulation 28 of the Money Laundering Regulations (MLR 2017), which sets out the core components of customer due diligence (CDD). You can’t verify identity or assess AML risk if you don’t first understand the client and their business.

From a practical perspective, good data collection:

• Helps avoid delays or repeat requests during ID checks or engagement onboarding.

• Enables accurate risk classification — so you can apply the right level of due diligence (simplified, standard, or enhanced).

• Improves your ability to spot inconsistencies or suspicious activity later on.

• Supports clear record-keeping, which is a requirement under Regulation 40.
  

In short: getting this step right improves compliance and efficiency across your entire AML process.

Learn more

The AML Essential Kit will guide you through everything you need to know, it covers:

• How to collect client data

• How it supports customer due diligence (CDD)

Client data collection is the first — and arguably most important — step in your AML process. It gives you the information needed to verify identity, assess risk, and build a strong foundation for ongoing compliance. Done well, it makes your AML controls more accurate, your onboarding smoother, and your risk assessments more meaningful. Make it systematic, thorough, and proportional to risk.

View all the details and the full AML Essential Kit here - https://www.firmcheck.com/aml-essential-kit