The procedures employed by financial organizations to gather and assess pertinent data about a customer or potential customer are known as customer due diligence.

1. WHAT IS CUSTOMER
DUE DILIGENCE
BY
MNS CREDIT MANAGEMENT GROUP
PVT. LTD.

2. 02
The procedures employed by financial
organizations to gather and assess
pertinent data about a customer or
potential customer are known as
customer due diligence.
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3. THERE MUST BE A VARIETY OF FACTS
GATHERED FOR DUE DILIGENCE
Basic consumer due
diligence entails gathering
data on:
the identity of a customer,
including information about
their business address and
individual executives, the
markets in which they
operate, the other entities
with which they do business,
and the customer's activities
and risk profile, or how likely
it is that they will engage in
activities that put financial
institutions at risk.
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4. WHAT JUSTIFIES
THE BANKING
INDUSTRY'S
IMPORTANCE OF
CONSUMER DUE
DILIGENCE?
Financial institutions invest time
and effort to "know their
consumers" for a variety of
reasons, including:
To prevent fraudulent conduct,
such as identity fraud or
impersonation, by making sure
the business complies with the
rules and laws of the regions or
markets in which it operates. To
help confirm the consumer is
truly who they claim to be.
The financial institution's ability
to support law enforcement

5. A METHOD BASED ON
RISK
sanctions
busting
money laundering
terrorism
financing fraud
Financial firms are required to approach client due
diligence using a risk-based strategy by many
international KYC regulations. Customers who may
pose a higher risk will therefore be subject to
stricter due diligence procedures. Depending on the
nature of the customer's connection with the bank
and their risk profile, different degrees of due
diligence will be used.
The primary dangers that customer due diligence
seeks to reduce are as follows:
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