From friction to trust: How to explain the importance of ID checks to your clients

One of the biggest anxieties for accounting firms today isn't just understanding new compliance rules around ID verification- it's figuring out how to explain their importance to clients. You have a duty to meet stringent new standards, but you also have a duty of care to your clients, including some that may be resistant to new technology.

It’s a situation many firms find themselves in. There’s a real concern that introducing a new digital process will create friction, especially for clients who might be less comfortable with technology. This fear, in some cases, is preventing firms from adapting their processes, which for those thinking of registering as an ACSP, increases the risk of non-compliance.

But with the right communication strategy, you can transform your compliance requirements from a potential point of friction into an opportunity to build trust with clients. Here’s a simple three-step guide to navigating these important conversations.

1. Helping clients understand the “why”

If your clients are coming to you with questions around the ID verification process, including how the new requirements impact them (for Directors and PSCs) - then this is your opportunity to frame how these checks are not just another annoying admin task, but an essential measure that helps protect them.

Rather than hit them with the “we have to do this for compliance reasons”, try to give them more context that brings them into the frame and the importance into perspective:

In order to meet the latest government standards designed to prevent identity fraud, we’re now using a secure digital system to verify identity. It’s the safest and fastest way for us to confirm we’re working with the right person, and protects you and our firm from risk.

2. Reassure and guide them through the process

For clients you've worked with for a long time, you can anticipate who might be apprehensive about unfamiliar technology. It is vital to give them context around what the process looks like and what to expect. Simply telling them to “download an app” or log into an unfamiliar portal can cause confusion, and risks overburdening your administrative team with support queries.

This is where the support model of your chosen technology partner becomes critical. Before you roll out a new process, ask yourself: What happens if a client gets stuck?

The solution isn’t to avoid digital tools, but to instead choose a provider who can offer direct, human support to your clients and guide them through the process should the need it. This foresight prevents your team from being inundated with calls or emails and ensures a smooth experience for everyone - regardless of their technical confidence.

3. Explain the risk of cutting corners

Inevitably, some clients may ask for an exception, like, "Can't I just email you a copy of my passport like last time?" While tempting, it's vital to hold the line, not just for your compliance but for their security.

This is a chance to educate them on the risks of previous methods:

We've moved away from handling sensitive documents via email because it's no longer considered a secure method due to risks of interception. Our new system uses end-to-end encryption to protect your data. It’s a significant upgrade in security that we’re proud to offer all our clients.

By explaining that you are closing a security loophole, you reinforce that you are acting in their best interest. This conversation underlines the fact that these new standards are non-negotiable for any firm that takes its regulatory and client-care duties seriously.

Navigating client concerns around new technology is a delicate balance. But by proactively communicating the “why”, framing the change as a mutual benefit and ensuring you have the right support in place, you do more than just tick a compliance box - you demonstrate a commitment to security and professionalism that will ultimately strengthen your client relationships.