Customer Due Diligence

Required by law to undertake CDD checks on new clients BEFORE providing any financial services
Identify and verify customer idenity
1. IF firm had not yet verify identity of the customer
  1. It must ensure no transactions would take place
  2. IF life assurance, identify prior to paying out a death or serious illness claim
  3. if this is necessary in order to not interrupt the normal conduct of business. -There is no real risk of money laundering or terror finance. PROVIDE verification si completed as soon as practicable after initial contact
2. a single transaction or series of tx Greater than 15,000
Identify and Verify the beneficial owner of the customer
Obtain information on the purpose and intended nature of the business
Monitor the ongoing business relationship
Standard
1. RISK BASE
  1. scale the information In proportion to it perceived risk of money laundering or terrorist financing posed by the customer and transactions in question
    1. Profile of the customer
    2. Nature of the financial product or service to be provided
      1. The delivery mechanism or distribution of channel used to sell the financial product
        ex. a large sums in a life assurance investment bond
    3. The geographical area of operation
2. FOLLOWS THE 4 STEPS MODEL
Enhanced

Resource summary

	Created by MARTHA MADRIZ about 6 years ago