Which entity must accountants inform if discrepancies are found during Customer Due Diligence?

In the context of Customer Due Diligence (CDD), if accountants or regulated professionals find discrepancies concerning a customer’s identity, financial background, or their dealings, they are typically required to report such findings to the relevant authorities overseeing compliance and anti-money laundering regulations.

In the UK, the correct authority to notify in these situations is HM Revenue and Customs (HMRC). This is because HMRC is responsible for ensuring compliance with anti-money laundering laws, including the supervision of accountants and other financial service providers. Under the Proceeds of Crime Act and the Money Laundering Regulations, any suspicion of money laundering or discrepancies in customer information needs to be reported to HMRC.

The other options, while they play important roles in the financial system, do not have the same direct responsibility for overseeing CDD compliance as HMRC does. The Financial Conduct Authority (FCA) regulates specific entities and markets but does not directly supervise the individual financial compliance of accountants. Companies House maintains company registrations and information, while the Bank of England has a different focus on monetary stability and does not handle CDD discrepancies directly. Therefore, if discrepancies are detected during Customer Due Diligence, the correct course of action for accountants is to inform HMRC.