What E-commerce businesses must know about AML & KYC?
The e-commerce landscape is evolving fast. But as online retail continues to grow, so does the need to comply with increasingly stringent financial crime regulations.
For UK ecommerce businesses, especially those using platforms like Shopify and WooCommerce, understanding AML (Anti-Money Laundering) and KYC (Know Your Customer) compliance and obligations is now a commercial priority, not just a regulatory checkbox.
What are AML and KYC compliance in ePolicies?
AML policies go further, aiming to detect and prevent criminal activities like money laundering and terrorist financing.
KYC policies require businesses to verify the identity of their customers before providing services.
AML & KYC for e-commerce stores, this may mean:
- Verifying customer identities (especially for high-ticket items or B2B sales)
- Monitoring suspicious transactions
- Keeping accurate records for regulators
The UK legal position (2025 Update)
Under the Money Laundering Regulations 2017 (amended in 2022 and under ongoing review), AML compliance is mandatory for certain high-risk ecommerce businesses, especially those dealing with:
- Financial services
- Cryptocurrency payments
- High-value goods (£10,000+ per transaction)
But change is coming.
The UK government is reviewing its AML regime to include more online sectors and SMEs, especially post-Brexit, to match FATF international standards.
“We need all sectors, including ecommerce, to take financial crime seriously. No business should be a weak link.” Dame Margaret Hodge, MP and former chair of the Public Accounts Committee
Why it’s becoming mandatory for everyone
Whether you‘re selling luxury goods or digital subscriptions, there is growing pressure:
- Payment gateways (like Stripe and PayPal) already impose KYC checks on sellers
- Banks want better proof of business legitimacy
- Regulators are targeting digital businesses in the new AML reforms
Expect more rules in 2025–2026, making AML and KYC compliance mandatory for most e-commerce businesses, even small online shops.
What can you do now?
- Audit your checkout process – is identity verification built in?
- Choose compliant platforms – Shopify, WooCommerce and even Magento support KYC plugins and integrations
- Update your privacy and data policies – make sure they reflect due diligence practices
- Educate your team – train staff on recognising fraud or suspicious patterns
Recommended reading
Final thoughts
AML and KYC compliance policies aren’t just red tape; they’re the future of responsible ecommerce. By embracing compliance early, you build trust, credibility, and customer loyalty.
Visual Identity helps ecommerce brands do more than just sell – we help them grow with secure, scalable websites that meet evolving legal and digital standards.
Ready to protect your online store?
We’re Shopify and WooCommerce experts with decades of experience in ecommerce compliance, UX, and digital design. Whether you’re scaling up, launching a new platform, or futureproofing your business, we’ll guide you every step of the way.
Talk to us today and let’s build a compliant, conversion-driven ecommerce experience.
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