Professional Documents
Culture Documents
Customer Due Diligence Checklist
Customer Due Diligence Checklist
Name
Address
Date of birth
Telephone number
National ID number
Identity documents
Mobile network data
Geolocation
Selfie
Live video
Third-party account verification
Why? Sometimes, the only way to get the information required for CDD is
through a trusted third party, so it’s important to ensure that their standards
and best practices are aligned with your business. At the end of the day,
you are liable and will be fined or penalized for non-compliance.
Ensure that pertinent information has been collected and stored securely.
How? Beyond basic CDD, it’s important that you carry out the correct
processes to ascertain whether EDD might be necessary. This can be an
ongoing process, as customers have the potential to transition into higher-
risk categories over time so, conducting periodic due diligence
assessments can be beneficial.
Why? Again, this protects you and your business against any involvement
with nefarious activities and also ensures that you’re meeting various KYC
and Anti-Money Laundering (AML) regulatory requirements.
With robust digital records in place, internal audit processes can account
for deeper data sets, can re-run and re-analyze situations to decrease risk,
improve performance and better guard against problematic accounts.
These records are another line of defense to help protect the entire
compliance process, as they can be used to double-check accounts that
have passed onboarding checks. These checks also allow the auditing
team to hone their strategy and tactics, test assumptions and otherwise
optimize compliance procedures.
Ongoing CDD
The key to effective, ongoing CDD is to have set policies and processes for
various contingencies. Anticipating scenarios helps to clarify which
approaches are best and speeds up responses.
This post was originally published on February 22, 2018. It has been
updated to reflect the latest industry developments and best practices.