Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

Customer Due Diligence Checklist – Is Your Business Compliant?

Customer Due Diligence Checklist

Compliance regulations can be a challenging task for the financial services sector and fulfilling them can be a long and tedious process. But no matter how onerous the process may be, the costs of non-compliance can be detrimental. Thus the financial services sector must exercise a comprehensive CDD or Customer Due Diligence Checklist. Under the global compliance regulations, every company providing financial services is obliged to perform identity business verification of its clients during the onboarding process.

The customer due diligence process can vary depending on the nature of the account and the client. To simplify the procedure, therefore, companies should adopt a risk-based approach. This allows them to verify their customers based on the levels of risk they pose to the company. For example, a person opening a simple low deposit account may need some basic document verification at the time of onboarding. On the other hand, a beneficial owner of an offshore entity or a person having a high-risk business needs to be subjected to an enhanced due diligence process.

Customer Due Diligence Checklist – Steps towards a Better Compliance Structure

The real question then is that what steps should be taken to establish an efficient due diligence checklist. A simple customer due diligence checklist that banks and financial services can go through to make sure their CDD procedures screen through every sort of risk can include;

 

  • Build a Basic Screening Process to Weed Out any Obvious Levels of Risk

 

Building a basic verification procedure can ensure that there is no obvious fraud involved. This process may involve asking for a person’s ID information including full name, date of birth, address, along with some essential identity documents like an ID card, passport or a driver’s licence. It is also advisable to perform an address verification check by asking for the client’s recent utility bills. These Know Your Customer or KYC checks can help the company weed out any kind of identity fraud and determine if the person is trying to impersonate someone.

Additionally, at this point, it is also advisable to check for any beneficial owners (BO). In case there are any, make sure to get their details as well and the relationship between the BO and the customer. Moreover, perform an AML check to make sure that the customer is not exposed politically.

 

  • Vet Your Third Parties to Enhance the Process

 

Performing the entire CDD process on your own is impossible. To verify a customer you have to rely on third-party databases, banks, lawyers and auditors. It is important to choose outsourced service providers after proper research and due diligence.

 

  • Assess the need for Enhanced Due Diligence

 

For high-risk clients, the process of enhanced due diligence is very important. EDD involves collecting more information using customer risk assessments. Due diligence EDD can be an ongoing process and can be implemented for the entire period of time the client stays with your firm. It is performed by setting up some warning signals in your system to become aware of any threats or risks to your system immediately. Some alert signs that can help you through may include; the type of risk associated with the client’s transactions; their occupation; their address; and the type and value of their transactions.

All these red flags can enable you to assess whether your client is getting involved in money laundering or any other financial crimes. They will help you to timely assess any risks to your firm and take the appropriate action accordingly.

 

  • Make Sure you Comply with Data Protection Regulations

 

Performing customer due diligence is only a part of your responsibility. You must also make sure that every shred of data you collect from your clients is protected and secured. Moreover, GDPR also demands that any entity collecting customer data is also liable to protect it as well.

 

  • Keep Your Data Saved Digitally

 

Make sure all customer data you have is saved digitally and can be produced for proof if or when needed. Securing all CDD and EDD data is not only smart but a necessary regulation from any global regulator. Since any government can ask for client data in case of suspicion of money laundering or corruption, every firm is liable to be able to provide documented proof of their clients’ transactions.

A Customer Due Diligence Checklist can allow banks to implement a comprehensive compliance process. Due diligence CDD is a part of your AML compliance checklist. Shufti is a leading data verification service that provides customer identification as well as business verification service. It provides KYC/AML for security compliance for companies looking to verify their clients through identity checks and AML screening.

Disclaimer: The views and opinions expressed on this webpage or weblink are those of the author only, and are not necessarily the views or opinions of Shufti Limited. The material and information on this weblink is solely for general information purposes. You should not rely upon the material or information on the website as a basis for making any business or legal decision.

While we endeavor to keep the information up-to-date and/or correct, we make no representations or warranties of any kind, express or implied, or for any purpose about the completeness, accuracy, reliability, suitability, or availability of the contents or information herein. Any reliance on its content is thus entirely at your own risk.

For the avoidance of doubt, Shufti Limited will not be liable for any false, inaccurate, inappropriate, or incomplete information presented herein, and all liabilities with respect to actions taken, or not taken, based on the contents or information herein, or for any loss sustained by you as a consequence are hereby expressly disclaimed by us.

Related Posts

Blog

Online Video KYC: Eliminate the Risks of Identity Theft

The growing danger of cybercrime and data breaches has heightened the demand for effective verifi...

Online Video KYC: Eliminate the Risks of Identity Theft Explore More

Blog

Facial Recognition Technology Pioneered at Olympic and Paralympic Games Tokyo 2020

Facial recognition has grown by leaps and bounds with the arrival of the sophisticated pattern-ma...

Facial Recognition Technology Pioneered at Olympic and Paralympic Games Tokyo 2020 Explore More

Blog

How Transaction Monitoring Can Ensure Secure Online Services

A safe and comprehensive transaction monitoring system is increasingly important in an era charac...

How Transaction Monitoring Can Ensure Secure Online Services Explore More

Blog

Top 5 Reasons Why Businesses Need Transaction Monitoring Solution

Companies are moving towards digitisation, meanwhile, cybercriminals are mastering the art of exp...

Top 5 Reasons Why Businesses Need Transaction Monitoring Solution Explore More

Blog

Crypto Regulations 2021 – What Digital Currency Providers Need to do

Cryptocurrency has been a hot topic ever since its advent in 2009. The ability to draw investor a...

Crypto Regulations 2021 – What Digital Currency Providers Need to do Explore More

Blog

3 ways to protect your organizations from coronavirus cyber security threat

  Due to the spread of the coronavirus, the world adapts to new ways of working. Cyber criminals ...

3 ways to protect your organizations from coronavirus cyber security threat Explore More

Blog

20 Facts and Statistics About the Global Finance Sector

The finance sector makes up around 20 to 25% of the global GDP. With the market capitalization re...

20 Facts and Statistics About the Global Finance Sector Explore More

Blog

Addressing AML Compliance Challenges with a Risk-based Approach (2023)

Regardless of how big or small a company is, the after-effects of Covid-19 and the global financi...

Addressing AML Compliance Challenges with a Risk-based Approach (2023) Explore More

Blog

Global Expansion, Digitization, and Crimes – How Shufti Can Help Financial Industry

The financial industry has seen significant technological changes over the past recent years. Man...

Global Expansion, Digitization, and Crimes – How Shufti Can Help Financial Industry Explore More

Blog

Online Payment Fraud and the Role of AML Transaction Monitoring

Imposing travel restrictions worldwide after the COVID-19 pandemic led to an unprecedented surge ...

Online Payment Fraud and the Role of AML Transaction Monitoring Explore More

Blog

The Benefits and Best Practices of Deploying Facial Recognition in the Workplace

With the rapid shift towards digitisation, keeping track of the most recent technological develop...

The Benefits and Best Practices of Deploying Facial Recognition in the Workplace Explore More

Blog

Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime

The Russian invasion of Ukraine has resulted in a surge in financial crimes in the UK as Russian ...

Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime Explore More

Blog

Art Market in the Frame of Money Laundering

The highly volatile finance and crypto sector is not appealing for many investors, so they turn t...

Art Market in the Frame of Money Laundering Explore More

Blog

5 Frauds in the Education Sector and How They Can be Prevented

Educational institutions have become an attractive target for cybercrime attacks in recent years....

5 Frauds in the Education Sector and How They Can be Prevented Explore More

Blog

2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals

Passwords continue to be a low-hanging fruit for cybercriminals.  Approximately 15 million record...

2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals Explore More

Blog

ICOs blocking investors from USA and China – Why and How?

Initial Coin Offerings, more commonly known as ICOs, are all the rage in modern day financial wor...

ICOs blocking investors from USA and China – Why and How? Explore More

Blog

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview]

Over the past few years, the financial industry has witnessed significant technological changes, ...

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview] Explore More

Blog

Singapore’s Digital Payment Token and AML Regulations [2022 Updates]

Financial crimes are an ever-increasing threat to the global economic climate. As a financial hub...

Singapore’s Digital Payment Token and AML Regulations [2022 Updates] Explore More

Blog

The 10 Biggest DeFi Hacks of 2022 and How Can KYC/AML Compliance Help

The crypto industry witnessed a challenging year in 2022, marked by numerous hacks and scams, hig...

The 10 Biggest DeFi Hacks of 2022 and How Can KYC/AML Compliance Help Explore More

Blog

Global Expansion, Digitization, and Crimes – How Shufti Can Help Financial Industry

The financial industry has seen significant technological changes over the past recent years. Man...

Global Expansion, Digitization, and Crimes – How Shufti Can Help Financial Industry Explore More

Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Identity & KYC

AML Compliance in EU Member States and Risks of Businesses

Making regulations is just the first step, the true game starts when it comes to implementation, ...

AML Compliance in EU Member States and Risks of Businesses Explore More

Blog, Identity & KYC

Identity Proofing – Prevention from Data Breaches

World economic forum states that Cyberattack is mapped as one of the top threats to global stabil...

Identity Proofing – Prevention from Data Breaches Explore More

Blog

January 2023 Recap: Major Events Worldwide and How AML Verification Solution Can Help

Noncompliance with Know your Customer and Anti Money Laundering (KYC) regulations continue to pla...

January 2023 Recap: Major Events Worldwide and How AML Verification Solution Can Help Explore More

Blog

Brazil to Launch CBDC: Its Impact on Financial Firms and How KYC/AML Can Help

Where does the cash come from? The country’s central bank authorises the printing of paper ...

Brazil to Launch CBDC: Its Impact on Financial Firms and How KYC/AML Can Help Explore More

Blog

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud

Since the dawn of the internet in the 90s, we’ve witnessed multiple phases of digital revolution....

The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud Explore More

Blog

Unfolding Telecom Frauds through Effective KYC Compliance

The growing adoption of smartphones has naturally spurred sharing of personal data. From providin...

Unfolding Telecom Frauds through Effective KYC Compliance Explore More

Blog

AML Screening – Why Real Estate is an Easy Target for Money Launderers

The strong link between money laundering and the real estate industry is becoming a global concer...

AML Screening – Why Real Estate is an Easy Target for Money Launderers Explore More

Blog

The FATF Travel Rule: What Business Owners Must Know

The rapidly evolving landscape of technology and cryptocurrency has made the regulation of digita...

The FATF Travel Rule: What Business Owners Must Know Explore More

Blog

The Importance of KYC Remediation to Prevent Financial Crimes

If we talk about financial institutions including banks and their processes, one can freely argue...

The Importance of KYC Remediation to Prevent Financial Crimes Explore More

Blog

Cryptocurrency Exchanges and negative KYC Compliance

KYC & AML Compliances are not being upheld by almost 68% of the cryptocurrency exchanges arou...

Cryptocurrency Exchanges and negative KYC Compliance Explore More

Blog, Identity & KYC

How AML/KYC Direct Credible ICO Growth?

What if I told you, early in the days of ICOs, startups operated with little to no top level regu...

How AML/KYC Direct Credible ICO Growth? Explore More

Blog

Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help

Since the start of civilization, humans have used money in several different ways, and throughout...

Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help Explore More

Blog

Safeguarding Financial Operations with Transaction Monitoring and AML Screening

To enhance the power of anti-money laundering regulation, transaction monitoring systems have evo...

Safeguarding Financial Operations with Transaction Monitoring and AML Screening Explore More

Blog

The ‘What’, ‘How’ and ‘Why’ of Sanctions Screening | A Basic Guide

International collaboration and cross-border transactions have become the norm in our interconnec...

The ‘What’, ‘How’ and ‘Why’ of Sanctions Screening | A Basic Guide Explore More

Blog

Impact of COVID-19 on disruptive Fintech industry

The economy and society worldwide are affected by the corona crisis. The effects of COVID-19 on b...

Impact of COVID-19 on disruptive Fintech industry Explore More

Blog, Online Marketplace

Social Media and Identity Theft Frauds

Imagine this: You get up in the morning and like most people; check your email. There you have an...

Social Media and Identity Theft Frauds Explore More

Blog

The Most Common Use Cases of Identity Document Verification

As data breaches and other crimes increase, regulators must impose strict rules that corporations...

The Most Common Use Cases of Identity Document Verification Explore More

Blog

Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties

For multinational businesses, reliance on external third-party vendors is crucial. However, failu...

Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties Explore More

Blog

Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer

From the world’s glitziest gaming development to betting shops on the high streets, the global ga...

Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer Explore More

Blog

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution

The digital world is evolving at a greater pace than ever before. The Metaverse is considered a d...

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution Explore More

Blog

Unfolding Telecom Frauds through Effective KYC Compliance

The growing adoption of smartphones has naturally spurred sharing of personal data. From providin...

Unfolding Telecom Frauds through Effective KYC Compliance Explore More

Blog, Fraud Prevention

4 Fraud Prevention Tips For Your E-commerce Business this Holiday Season

With the holiday shopping season in full swing, e-commerce fraud risk is a glaring reality that n...

4 Fraud Prevention Tips For Your E-commerce Business this Holiday Season Explore More

Blog

Impact of COVID-19 on disruptive Fintech industry

The economy and society worldwide are affected by the corona crisis. The effects of COVID-19 on b...

Impact of COVID-19 on disruptive Fintech industry Explore More

Blog

NFC Verification – Making Digital Payments Mainstream from Alternative

With time, payment methods have evolved from coins to paper-based money, then plastic, and now sm...

NFC Verification – Making Digital Payments Mainstream from Alternative Explore More

Blog

A Brief Overview of the RegTech Industry [2022 Update]

The rising financial crimes have raised concerns of global regulatory watchdogs giving rise to Re...

A Brief Overview of the RegTech Industry [2022 Update] Explore More

Blog

Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes

The increased reliance on digital banking and the advent of virtual currencies in today’s d...

Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes Explore More

Blog

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening

In November 2021, the market capacity of the cryptocurrency went over $3 trillion. With the incre...

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening Explore More

Blog

The Power of Robotic Process Automation in the Banking Industry

Entering into the fourth industrial revolution, business processes are shifted to the digital sph...

The Power of Robotic Process Automation in the Banking Industry Explore More

Blog

Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate

Shufti, the global identity verification service provider, started from humble beginnings wit...

Shufti’s Secret to Acquiring 92% End-User Satisfaction Rate Explore More

Blog

Blockchain and cryptocurrency security Guide

Online bitcoin business might have experienced a slump in recent months but still, it remains to ...

Blockchain and cryptocurrency security Guide Explore More

Blog, Online Marketplace

Verify ID For a Secure Travel Experience

Since we are using the Internet for a great many things including shopping to online booking of f...

Verify ID For a Secure Travel Experience Explore More

Blog, Business Technology

Business Verification – Foolproof Ways to Secure Happy Customers

Creating a winning customer experience can make for a significant competitive advantage for busin...

Business Verification – Foolproof Ways to Secure Happy Customers Explore More

Blog

Bitcoin ATMs – how it works and KYC compliance

Bitcoin ATMs are everything an ATM is and isn’t. The world of finance and banking has chang...

Bitcoin ATMs – how it works and KYC compliance Explore More

Blog

Top 5 Trends for the Government Sector in 2022

With the emergence of the new variant of COVID-19 “Omicron” in South Africa, it is possible that ...

Top 5 Trends for the Government Sector in 2022 Explore More

Blog

Top 5 FinTech Trends to Keep an Eye on in 2023

From the lingering effects of the COVID-19 pandemic to the sudden cryptocurrency market crash, 20...

Top 5 FinTech Trends to Keep an Eye on in 2023 Explore More

Blog

Holiday Season – The Time of the Year When Frauds Soar Sky High

Despite being the “most wonderful time of the year”, the holiday season is known to have the high...

Holiday Season – The Time of the Year When Frauds Soar Sky High Explore More

Blog

NFC Verification – Securing Large-scale Events from Frauds

Large-scale events are a great way for imposters to execute their illicit plans. Data breaches, m...

NFC Verification – Securing Large-scale Events from Frauds Explore More

Blog

How biometrics in visa process reduce travel difficulties

Biometric technology is enhancing the travel industry in many ways.  Factors that drive the secur...

How biometrics in visa process reduce travel difficulties Explore More

Blog

5 Ways Banks Can Minimize Risks In Light of KYC/AML

If you’re dealing with customers across borders, how can you safeguard your bank by ensuring that...

5 Ways Banks Can Minimize Risks In Light of KYC/AML Explore More

Blog

Anti-Money Laundering Solutions | Helping Businesses Fight Against Financial Crimes

In today’s digital world, increased financial crimes adversely impact global industries, mainly t...

Anti-Money Laundering Solutions | Helping Businesses Fight Against Financial Crimes Explore More

Blog

Top 5 Technologies Disrupting the Healthcare Sector

Within the next five years, experts are anticipating major technological disruption in the 808 bi...

Top 5 Technologies Disrupting the Healthcare Sector Explore More

Blog

EU’s Upcoming Regulation for Cryptocurrency ‘Wild West’

The use of cryptocurrencies as an integral part of criminal schemes is growing immensely. However...

EU’s Upcoming Regulation for Cryptocurrency ‘Wild West’ Explore More

Blog

Spreading Holiday Cheer with a Heartfelt Donation to Crisis UK

As the holiday season approaches, we often reflect on how we can give back to our communities. Th...

Spreading Holiday Cheer with a Heartfelt Donation to Crisis UK Explore More

Blog

A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps

There is no doubt that social media has its benefits in contemporary times. With the growing tech...

A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps Explore More

Anti Money Laundering, Artificial Intelligence, Blog

AI a Blessing – AML compliance cost reduced by $217 billion

The U.S. financial firms spend approximately $25.3 Billion in terms of compliance, risk managemen...

AI a Blessing – AML compliance cost reduced by $217 billion Explore More

Blog

The need for identity verification solutions spiking in demand

At present, we are living in a digital world. Everyone is on the internet which is an anonymous s...

The need for identity verification solutions spiking in demand Explore More

Blog

KYC and Blockchain – The Foundation of a Secure Crypto Landscape

Blockchain technology has demonstrated fast-paced growth throughout the world and now faces the c...

KYC and Blockchain – The Foundation of a Secure Crypto Landscape Explore More

Biometric Technology, Blog

Biometric identification Analysis and Facial Recognition Technology

Identity verification services might have been the most innovative and effective way to cut down ...

Biometric identification Analysis and Facial Recognition Technology Explore More

Blog

Enhancing security in the cryptocurrency world with KYC verification

Almost 20 years after the legislation on combating money laundering, regulators around the world ...

Enhancing security in the cryptocurrency world with KYC verification Explore More

Blog

KYC Analysts: The First Line of Defense Against Identity Theft and Fraud

An upsurge in financial transactions has led to heightened money laundering risks and terrorist f...

KYC Analysts: The First Line of Defense Against Identity Theft and Fraud Explore More

Blog, Online Marketplace

KYC Services and AML Compliance Services for Forex Industry

Forex Industry stands to benefit a lot by incorporating KYC services in addition to AML Complianc...

KYC Services and AML Compliance Services for Forex Industry Explore More

Blog

Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters

In recent times, the financial industry has witnessed significant technological changes which hav...

Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started