Customer Due Diligence
Customer due diligence, also known as Know Your Customer, is the process by which an organisation verifies the identity of the individual or entity with which it is going to do business. This initial due diligence is then supplemented by ongoing due diligence (ODD), which consists of ongoing analytic procedures to verify that the information provided by the customer remains consistent with the initial due diligence and the behavior associated with the customer.
Key criteria that organisations should look for in a CDD solution includes the following:
Organisations are obligated to screen customers against numerous watch and alert lists. These include sanctions lists of entities with which organisations are prohibited from transacting, as well as the Politically Exposed Persons (PEP) list of individuals who hold a prominent position in a foreign government.
Organisations are not prohibited from transacting with PEPs, but certain members of this group represent a higher risk, and enhanced due diligence procedures are required under AML laundering regulations. There are thousands of names on the global PEP list, and nearly 120 sanctions lists that contain over 20,000 profiles.
For a full list of AML Protektor and AML Search data sets, watch lists and alert sources click here.
Key criteria that organisations should look for in a CDD solution includes the following:
- A Risk based approach that can be used to prioritise manual investigations
- A wide range of independent data sources for verifying the identifying information provided by the customer
- A wide range of Warning Lists and Alert sources
- The ability to support international data sources from multiple jurisdictions individuals and organisations
- Clear Pass, Fail or Refer results to make decisions with confidence
- Full regulatory Audit Trail
- On-going due diligence monitoring and warnings
Watch List Filtering & Monitoring
Organisations are obligated to screen customers against numerous watch and alert lists. These include sanctions lists of entities with which organisations are prohibited from transacting, as well as the Politically Exposed Persons (PEP) list of individuals who hold a prominent position in a foreign government.
Organisations are not prohibited from transacting with PEPs, but certain members of this group represent a higher risk, and enhanced due diligence procedures are required under AML laundering regulations. There are thousands of names on the global PEP list, and nearly 120 sanctions lists that contain over 20,000 profiles.
For a full list of AML Protektor and AML Search data sets, watch lists and alert sources click here.
