SlideShare a Scribd company logo
Customer Due Diligence
Part 1
AMLbites
What does this video cover?
• Why should I perform customer due diligence (CDD)?
• When do I perform CDD?
• What are the stages of customer due diligence?
- Customer identification
- Risk assessment
- Customer verification
• What should I document?
Why should I perform Customer Due
Diligence?
• Regulation 27 of the Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017 (MLR 2017).
• You also need to be able evidence to your AML supervisor that you’ve applied
the AML requirements appropriately. (Regulation 28 (16)).
• The purpose of CDD is to know and understand a client’s identity and
business activities so that any MLTF risks can be properly managed.
• Effective CDD is, therefore, a key part of AML defences.
What if I don’t perform CDD?
• Risk
- Inadvertently facilitate money laundering.
- The vulnerable continue to suffer
- For example - is your client in the construction industry?
- Vulnerable to modern slavery and human trafficking.
- Robust CDD and SAR reporting where necessary could rescue victims of such abuse.
- Reputational damage to your firm.
- Investigation and possible regulatory fine by your AML supervisor.
- Scrutiny by law enforcement.
But I know my clients really well, this is a
waste of time
• Performing customer due diligence is a legal requirement.
• It does not have to be onerous
- Risk assess your client and then the level of verification required is proportionate to
that risk.
- If you have done this your supervisor will see evidence that you know your client well
and see that you have a proportionate response to verification.
When do I perform CDD?
• At the start of a new business relationship (including a company formation).
• At appropriate points during the lifetime of the relationship.
• When an occasional transaction is to be undertaken.
• When there is either knowledge or a suspicion of MLTF.
• When there is any doubt about the reliability of the identity information, or
documents obtained previously for verification purposes.
What are the stages of CDD?
First stage of CDD - Identification
• Who is the client?
• Appropriate identification information for an individual would include full name,
date of birth and residential address.
• In the case of corporates and other organisations, identification also extends
to establishing the identity of anyone who ultimately owns or controls the
client. These people are the Beneficial Owners (BOs).
Beneficial owner
• A beneficial owner can only be a natural person ie, a human being, as distinct
from a legal person eg, a company.
Risk assessment and verification
• CCAB Guidance
- Businesses should have different client risk categories such as: low, normal, and high.
- Once an initial risk assessment has been carried out, evidence is required to verify the
identity information gathered during the first stage. This is called client verification.
- Degree of verification dependant on risk assessment.
- higher risk clients, more verification work should be performed.
- For an individual, verification may require sight of a passport (with a photocopy taken).
- For corporates and others, in addition to the client itself, reasonable verification
measures for any individual beneficial owners (BOs) must also be considered on a risk
sensitive basis.
People with Significant Control register
• Before establishing a business relationship, -
- A business must obtain proof of their client’s registration on the People with Significant
Control (“PSC”) register, or an excerpt of the register.
- Report discrepancy
What documentation will ICAEW expect to
see?
• That you have identified your client
- Documentation that evidences you know who your client is.
- For example - if it is a company that you know who controls it.
• A risk assessment
- Documentation that tells us your conclusion on the risk that this client may be involved in
money laundering. (We cover this in more detail on CDD 2).
• Verification
- Based on the risk what have you done to ensure the client is who they say they are and
operating in the way the tell you.
- This might vary from client to client (risk based).
What if I can’t complete CDD?
• CDD completed
- Before the establishment of a business relationship or the carrying out of the
transaction.
• CCAB
- If a prospective or existing client refuses to provide CDD information, the work must not
proceed.
- The 2017 Regulations do recognise that CDD will sometimes need to be completed while
the business relationship is established, rather than before.
- delays of this kind are only permissible when there is little risk of MLTF.
Resources
• CCAB guidance
• Covid-19 Supplementary Anti Money Laundering Guidance - Completion of
Client Due Diligence (CDD) During Urgent Work - CCAB
• Anti-money laundering client due diligence | AML helpsheets | ICAEW
icaew.com
 ICAEW 2021

More Related Content

What's hot

Kyc Know Your Customer
Kyc Know Your CustomerKyc Know Your Customer
Kyc Know Your Customer
ASAD ALI
 
AML Training uba capital
AML Training uba capitalAML Training uba capital
KYC
KYCKYC
AML presentation
AML presentationAML presentation
AML presentation
Jowhar Roshan
 
Aml basics
Aml basicsAml basics
Aml basics
David F Amakobe
 
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
Melissa Cammarata
 
Aml cft training programme
Aml cft training programmeAml cft training programme
Aml cft training programme
Subhalakshmi Girish
 
KYC Know Your Customer
KYC Know Your CustomerKYC Know Your Customer
KYC Know Your Customer
Taha Khan
 
Al About KYC
Al About KYCAl About KYC
Kyc banks
Kyc banksKyc banks
AML & KYC Policy
AML & KYC PolicyAML & KYC Policy
AML & KYC Policy
Abinash Mandilwar
 
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
Abinash Mandilwar
 
KYC
KYCKYC
Risk based approach
Risk based approachRisk based approach
Risk based approach
Pierre Simon, CCEP-I
 
Anti-Money Laundering and Counter Financing of Terrorism
Anti-Money Laundering and Counter Financing of TerrorismAnti-Money Laundering and Counter Financing of Terrorism
Anti-Money Laundering and Counter Financing of Terrorism
Puni Hariaratnam
 
Anti money laundering
Anti money launderingAnti money laundering
Anti money laundering
Uttma Shukla
 
Chapter 8 aml and ctf
Chapter 8   aml and ctfChapter 8   aml and ctf
Chapter 8 aml and ctf
Quan Risk
 
Anti Money Laundering Framework
Anti Money Laundering FrameworkAnti Money Laundering Framework
Anti Money Laundering Framework
nikatmalik
 
What is customer due diligence and what is its importance
What is customer due diligence and what is its importanceWhat is customer due diligence and what is its importance
What is customer due diligence and what is its importance
crifhighmark111
 
How to conduct an AML risk assessment
How to conduct an AML risk assessmentHow to conduct an AML risk assessment
How to conduct an AML risk assessment
Asia Pacific AML
 

What's hot (20)

Kyc Know Your Customer
Kyc Know Your CustomerKyc Know Your Customer
Kyc Know Your Customer
 
AML Training uba capital
AML Training uba capitalAML Training uba capital
AML Training uba capital
 
KYC
KYCKYC
KYC
 
AML presentation
AML presentationAML presentation
AML presentation
 
Aml basics
Aml basicsAml basics
Aml basics
 
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
The ANTI-MONEYLAUNDERING LEGAL FRAMEWORK
 
Aml cft training programme
Aml cft training programmeAml cft training programme
Aml cft training programme
 
KYC Know Your Customer
KYC Know Your CustomerKYC Know Your Customer
KYC Know Your Customer
 
Al About KYC
Al About KYCAl About KYC
Al About KYC
 
Kyc banks
Kyc banksKyc banks
Kyc banks
 
AML & KYC Policy
AML & KYC PolicyAML & KYC Policy
AML & KYC Policy
 
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
AML & KYC Guidelines in Bank | Anti-Money Laundering for JAIIB Exam | Bank Pr...
 
KYC
KYCKYC
KYC
 
Risk based approach
Risk based approachRisk based approach
Risk based approach
 
Anti-Money Laundering and Counter Financing of Terrorism
Anti-Money Laundering and Counter Financing of TerrorismAnti-Money Laundering and Counter Financing of Terrorism
Anti-Money Laundering and Counter Financing of Terrorism
 
Anti money laundering
Anti money launderingAnti money laundering
Anti money laundering
 
Chapter 8 aml and ctf
Chapter 8   aml and ctfChapter 8   aml and ctf
Chapter 8 aml and ctf
 
Anti Money Laundering Framework
Anti Money Laundering FrameworkAnti Money Laundering Framework
Anti Money Laundering Framework
 
What is customer due diligence and what is its importance
What is customer due diligence and what is its importanceWhat is customer due diligence and what is its importance
What is customer due diligence and what is its importance
 
How to conduct an AML risk assessment
How to conduct an AML risk assessmentHow to conduct an AML risk assessment
How to conduct an AML risk assessment
 

Similar to Customer Due Diligence Part 1 slides.pptx

KYC - Know Your Costumer and the Importance of Suitability
KYC - Know Your Costumer and the Importance of SuitabilityKYC - Know Your Costumer and the Importance of Suitability
KYC - Know Your Costumer and the Importance of Suitability
MichaelSabaJD
 
Run your clients' aml profile
Run your clients' aml profileRun your clients' aml profile
Run your clients' aml profile
CDDS
 
Client Acceptance Procedure
Client Acceptance ProcedureClient Acceptance Procedure
Client Acceptance Procedure
GersonGomez26
 
Ratcheting Regulations in Singapore - How Private Banks can Respond
Ratcheting Regulations in Singapore - How Private Banks can RespondRatcheting Regulations in Singapore - How Private Banks can Respond
Ratcheting Regulations in Singapore - How Private Banks can Respond
Nizam Ismail
 
Aml&kyc 1
Aml&kyc 1Aml&kyc 1
In my honest Opinion: a frank look at client onboarding procedures
In my honest Opinion: a frank look at client onboarding proceduresIn my honest Opinion: a frank look at client onboarding procedures
In my honest Opinion: a frank look at client onboarding procedures
THRONE Compliance Services Ltd
 
mr neeraj - day 2 - aml kyc
mr neeraj - day 2 - aml kycmr neeraj - day 2 - aml kyc
mr neeraj - day 2 - aml kyc
Neeraj Verma
 
AIMA PA06FA Session 1.pdf
AIMA PA06FA Session 1.pdfAIMA PA06FA Session 1.pdf
AIMA PA06FA Session 1.pdf
ShubhamGoel152302
 
The Stages of Customer Due Diligence.pdf
The Stages of Customer Due Diligence.pdfThe Stages of Customer Due Diligence.pdf
The Stages of Customer Due Diligence.pdf
MNS Credit Management Group Pvt. Ltd.
 
Key Components of a Comprehensive Customer Due Diligence
Key Components of a Comprehensive Customer Due DiligenceKey Components of a Comprehensive Customer Due Diligence
Key Components of a Comprehensive Customer Due Diligence
MNS Credit Management Group Pvt. Ltd.
 
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
KYC UK
 
CRO (Chief Risk Office and its responsibility)
CRO (Chief Risk Office and its responsibility)CRO (Chief Risk Office and its responsibility)
CRO (Chief Risk Office and its responsibility)
Komal310425
 
ZUU_AML_CFT Training Material V1.0_20211012.pdf
ZUU_AML_CFT Training Material V1.0_20211012.pdfZUU_AML_CFT Training Material V1.0_20211012.pdf
ZUU_AML_CFT Training Material V1.0_20211012.pdf
MicCheng2
 
Fica Training
Fica TrainingFica Training
Fica Training
Mariette Van Zyl
 
Money Services Businesses: Past, Present & Future
Money Services Businesses: Past, Present & FutureMoney Services Businesses: Past, Present & Future
Money Services Businesses: Past, Present & Future
Jay Postma
 
Slides webinar 'How to prevent bad debt and maximise profit'
Slides webinar 'How to prevent bad debt and maximise profit'Slides webinar 'How to prevent bad debt and maximise profit'
Slides webinar 'How to prevent bad debt and maximise profit'
Colin Sanders
 
AML and KYC Compliance: Why is it so Crucial
AML and KYC Compliance: Why is it so CrucialAML and KYC Compliance: Why is it so Crucial
AML and KYC Compliance: Why is it so Crucial
Finarm
 
Raghav resume latest
Raghav resume latestRaghav resume latest
Raghav resume latest
B. Vijay Raghav
 
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
Jitske de Bruijne
 
Fraud risk management
Fraud risk managementFraud risk management

Similar to Customer Due Diligence Part 1 slides.pptx (20)

KYC - Know Your Costumer and the Importance of Suitability
KYC - Know Your Costumer and the Importance of SuitabilityKYC - Know Your Costumer and the Importance of Suitability
KYC - Know Your Costumer and the Importance of Suitability
 
Run your clients' aml profile
Run your clients' aml profileRun your clients' aml profile
Run your clients' aml profile
 
Client Acceptance Procedure
Client Acceptance ProcedureClient Acceptance Procedure
Client Acceptance Procedure
 
Ratcheting Regulations in Singapore - How Private Banks can Respond
Ratcheting Regulations in Singapore - How Private Banks can RespondRatcheting Regulations in Singapore - How Private Banks can Respond
Ratcheting Regulations in Singapore - How Private Banks can Respond
 
Aml&kyc 1
Aml&kyc 1Aml&kyc 1
Aml&kyc 1
 
In my honest Opinion: a frank look at client onboarding procedures
In my honest Opinion: a frank look at client onboarding proceduresIn my honest Opinion: a frank look at client onboarding procedures
In my honest Opinion: a frank look at client onboarding procedures
 
mr neeraj - day 2 - aml kyc
mr neeraj - day 2 - aml kycmr neeraj - day 2 - aml kyc
mr neeraj - day 2 - aml kyc
 
AIMA PA06FA Session 1.pdf
AIMA PA06FA Session 1.pdfAIMA PA06FA Session 1.pdf
AIMA PA06FA Session 1.pdf
 
The Stages of Customer Due Diligence.pdf
The Stages of Customer Due Diligence.pdfThe Stages of Customer Due Diligence.pdf
The Stages of Customer Due Diligence.pdf
 
Key Components of a Comprehensive Customer Due Diligence
Key Components of a Comprehensive Customer Due DiligenceKey Components of a Comprehensive Customer Due Diligence
Key Components of a Comprehensive Customer Due Diligence
 
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
CDD Vs EDD: How Crucial is Customer Due Diligence for Banks in the UK?
 
CRO (Chief Risk Office and its responsibility)
CRO (Chief Risk Office and its responsibility)CRO (Chief Risk Office and its responsibility)
CRO (Chief Risk Office and its responsibility)
 
ZUU_AML_CFT Training Material V1.0_20211012.pdf
ZUU_AML_CFT Training Material V1.0_20211012.pdfZUU_AML_CFT Training Material V1.0_20211012.pdf
ZUU_AML_CFT Training Material V1.0_20211012.pdf
 
Fica Training
Fica TrainingFica Training
Fica Training
 
Money Services Businesses: Past, Present & Future
Money Services Businesses: Past, Present & FutureMoney Services Businesses: Past, Present & Future
Money Services Businesses: Past, Present & Future
 
Slides webinar 'How to prevent bad debt and maximise profit'
Slides webinar 'How to prevent bad debt and maximise profit'Slides webinar 'How to prevent bad debt and maximise profit'
Slides webinar 'How to prevent bad debt and maximise profit'
 
AML and KYC Compliance: Why is it so Crucial
AML and KYC Compliance: Why is it so CrucialAML and KYC Compliance: Why is it so Crucial
AML and KYC Compliance: Why is it so Crucial
 
Raghav resume latest
Raghav resume latestRaghav resume latest
Raghav resume latest
 
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
E-book: How to manage Anti-Money Laundering and Counter Financing of Terroris...
 
Fraud risk management
Fraud risk managementFraud risk management
Fraud risk management
 

Recently uploaded

Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
36 Crypto
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
Falcon Invoice Discounting
 
Applying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdfApplying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdf
alexiusbrian1
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
5spllj1l
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
nalamynandan
 
1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf
Neal Brewster
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
nimaruinazawa258
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
nimaruinazawa258
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
tscdzuip
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
cosmo-soil
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
Commonwealth
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
Colin R. Turner
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
qntjwn68
 

Recently uploaded (20)

Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
 
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investmentsfalcon-invoice-discounting-a-strategic-approach-to-optimize-investments
falcon-invoice-discounting-a-strategic-approach-to-optimize-investments
 
Applying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdfApplying the Global Internal Audit Standards_AIS.pdf
Applying the Global Internal Audit Standards_AIS.pdf
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
快速办理(SMU毕业证书)南卫理公会大学毕业证毕业完成信一模一样
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
 
1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf1. Elemental Economics - Introduction to mining.pdf
1. Elemental Economics - Introduction to mining.pdf
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFiTdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
 
Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]Economic Risk Factor Update: June 2024 [SlideShare]
Economic Risk Factor Update: June 2024 [SlideShare]
 
Earn a passive income with prosocial investing
Earn a passive income with prosocial investingEarn a passive income with prosocial investing
Earn a passive income with prosocial investing
 
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
1:1制作加拿大麦吉尔大学毕业证硕士学历证书原版一模一样
 

Customer Due Diligence Part 1 slides.pptx

  • 2. What does this video cover? • Why should I perform customer due diligence (CDD)? • When do I perform CDD? • What are the stages of customer due diligence? - Customer identification - Risk assessment - Customer verification • What should I document?
  • 3. Why should I perform Customer Due Diligence? • Regulation 27 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). • You also need to be able evidence to your AML supervisor that you’ve applied the AML requirements appropriately. (Regulation 28 (16)). • The purpose of CDD is to know and understand a client’s identity and business activities so that any MLTF risks can be properly managed. • Effective CDD is, therefore, a key part of AML defences.
  • 4. What if I don’t perform CDD? • Risk - Inadvertently facilitate money laundering. - The vulnerable continue to suffer - For example - is your client in the construction industry? - Vulnerable to modern slavery and human trafficking. - Robust CDD and SAR reporting where necessary could rescue victims of such abuse. - Reputational damage to your firm. - Investigation and possible regulatory fine by your AML supervisor. - Scrutiny by law enforcement.
  • 5. But I know my clients really well, this is a waste of time • Performing customer due diligence is a legal requirement. • It does not have to be onerous - Risk assess your client and then the level of verification required is proportionate to that risk. - If you have done this your supervisor will see evidence that you know your client well and see that you have a proportionate response to verification.
  • 6. When do I perform CDD? • At the start of a new business relationship (including a company formation). • At appropriate points during the lifetime of the relationship. • When an occasional transaction is to be undertaken. • When there is either knowledge or a suspicion of MLTF. • When there is any doubt about the reliability of the identity information, or documents obtained previously for verification purposes.
  • 7. What are the stages of CDD?
  • 8. First stage of CDD - Identification • Who is the client? • Appropriate identification information for an individual would include full name, date of birth and residential address. • In the case of corporates and other organisations, identification also extends to establishing the identity of anyone who ultimately owns or controls the client. These people are the Beneficial Owners (BOs).
  • 9. Beneficial owner • A beneficial owner can only be a natural person ie, a human being, as distinct from a legal person eg, a company.
  • 10. Risk assessment and verification • CCAB Guidance - Businesses should have different client risk categories such as: low, normal, and high. - Once an initial risk assessment has been carried out, evidence is required to verify the identity information gathered during the first stage. This is called client verification. - Degree of verification dependant on risk assessment. - higher risk clients, more verification work should be performed. - For an individual, verification may require sight of a passport (with a photocopy taken). - For corporates and others, in addition to the client itself, reasonable verification measures for any individual beneficial owners (BOs) must also be considered on a risk sensitive basis.
  • 11. People with Significant Control register • Before establishing a business relationship, - - A business must obtain proof of their client’s registration on the People with Significant Control (“PSC”) register, or an excerpt of the register. - Report discrepancy
  • 12. What documentation will ICAEW expect to see? • That you have identified your client - Documentation that evidences you know who your client is. - For example - if it is a company that you know who controls it. • A risk assessment - Documentation that tells us your conclusion on the risk that this client may be involved in money laundering. (We cover this in more detail on CDD 2). • Verification - Based on the risk what have you done to ensure the client is who they say they are and operating in the way the tell you. - This might vary from client to client (risk based).
  • 13. What if I can’t complete CDD? • CDD completed - Before the establishment of a business relationship or the carrying out of the transaction. • CCAB - If a prospective or existing client refuses to provide CDD information, the work must not proceed. - The 2017 Regulations do recognise that CDD will sometimes need to be completed while the business relationship is established, rather than before. - delays of this kind are only permissible when there is little risk of MLTF.
  • 14. Resources • CCAB guidance • Covid-19 Supplementary Anti Money Laundering Guidance - Completion of Client Due Diligence (CDD) During Urgent Work - CCAB • Anti-money laundering client due diligence | AML helpsheets | ICAEW