AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
UK transfer firms ask how you know the recipient because the Money Laundering Regulations 2017 require them to understand the purpose and nature of each transaction and to monitor that payments fit what they know about you. The answer also helps them spot scams: a large first payment to someone you have never met is a classic warning sign. Answer accurately; the right answer is rarely a problem.
The legal reason
Regulation 28 of the Money Laundering Regulations 2017 requires a firm to identify and verify its customer and to assess, and where appropriate obtain information on, the purpose and intended nature of the relationship or transaction. It must also carry out ongoing monitoring so that transactions are consistent with what it knows about the customer and their risk profile.
Paragraph 13 lists factors the firm must weigh, including the purpose of the transaction, its size and its regularity. The relationship question gives the firm context for all three. Money to "mother" every month for living costs is a familiar and coherent pattern. The same amount to a different "friend" each week is not.
The fraud reason
The second reason protects you. Many scams that end with money sent abroad share a pattern: someone you have not met in person, a story that creates urgency and a request for money. A firm that knows you are paying someone you met online can show you a warning, slow the payment or ask more questions. That is the point of the question, not a judgement on you.
- Romance scams: a partner met online who needs money for travel, a medical bill or customs fees. See warning signs.
- Impersonation: a message from a new number claiming to be a relative in trouble.
- Mule recruitment: someone asking you to receive and pass on money; see mule risk.
- Fake sellers: a deposit for goods or a property that does not exist.
How to answer
| Who the recipient is | Typical answer | Worth adding |
|---|---|---|
| Parent, sibling, child, spouse | Family | Purpose such as family support or education |
| Cousin, aunt, in-law | Family or extended family, if offered | A note if the surname differs |
| A friend you know in person | Friend | Purpose; avoid repeated large sums without a reason |
| Your own account in Nigeria | Self | Account must be in your name |
| A school, hospital or business | Business or service provider | The invoice; see personal or business payment |
| Someone you have only met online | Say so plainly | Stop and check before sending |
The question is the same whether you send £20 or £2,000, but the amount changes how much weight the answer carries. A small first payment to a new friend is unremarkable; a large one, or a sudden increase, is the pattern firms are told to look at.
What happens after you answer
For most transfers, nothing visible. The answer is stored with the transaction; regulation 40 requires the firm to keep records that allow a transaction to be reconstructed for at least five years. If the relationship, purpose and amount do not fit together, the firm may hold the transfer and ask questions or for documents. If it suspects a scam, it may warn you or decline the payment.
If you think you have been scammed after sending, contact the provider straight away. The Financial Ombudsman Service says firms have 15 days to answer complaints about fraud and scams, and you can take an unresolved complaint to the ombudsman. Reporting routes are in how to report a money transfer scam.
Questions that may follow
If a payment is flagged, the follow-up questions can include how long you have known the recipient, whether you have met in person, what the money will be used for and whether anyone has told you what to answer. That last one matters: scammers often coach victims to say the money is for "family" to get past the checks. If someone has told you what to put in the app, that alone is a reason to stop and check.
Why answers should stay consistent
If you send to the same person often, use the same relationship each time. A recipient who is "mother" one week and "friend" the next looks like an error at best. Where the truth is more complex, for example paying an aunt who is collecting money for your mother's treatment, a short note explains it.
Where Pryme fits
When you send through Pryme's Send, the app shows the rate and the fee before you approve, and you can generate a regular or verifiable receipt of each payment (receipts) to keep with your notes. Outside Nigeria, Pryme's activities are carried out through regulated partners.
Questions people ask
Why does my transfer app ask my relationship to the recipient?
UK firms must understand the purpose and nature of each transaction under the Money Laundering Regulations 2017 and check that your payments fit your profile. The answer also helps them spot scams.
What should I put if the recipient is my cousin?
Family, or extended family if the app offers it. If the surname differs or the money is for someone else in the family, add a short note.
Will saying 'friend' get my transfer blocked?
Not on its own. Firms look at whether the relationship, purpose and amount fit together; regular large sums to different friends are more likely to be questioned.
What if I have only met the recipient online?
Say so, and pause. Payments to people you have not met in person are a common feature of scams, and the firm may warn you or ask more questions.
Sources
- Money Laundering Regulations 2017, regulation 28 (legislation.gov.uk) · accessed Oct 2026
- Money Laundering Regulations 2017, regulation 40 (legislation.gov.uk) · accessed Oct 2026
- Financial Ombudsman Service: Time limits (updated 17 Aug 2022) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.