Customer Due Diligence

Customer Due Diligence

1. Required by law to undertake CDD checks on new clients BEFORE providing any financial services

2. Identify and verify customer idenity

   • IF firm had not yet verify identity of the customer
     • It must ensure no transactions would take place
     • IF life assurance, identify prior to paying out a death or serious illness claim
     • 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
   • a single transaction or series of tx Greater than 15,000

3. Identify and Verify the beneficial owner of the customer

4. Obtain information on the purpose and intended nature of the business

5. Monitor the ongoing business relationship

6. Standard

   • RISK BASE
     • scale the information In proportion to it perceived risk of money laundering or terrorist financing posed by the customer and transactions in question
       • Profile of the customer
       • Nature of the financial product or service to be provided
         • The delivery mechanism or distribution of channel used to sell the financial product
           • ex. a large sums in a life assurance investment bond
       • The geographical area of operation
   • FOLLOWS THE 4 STEPS MODEL

7. Enhanced