Guidance on Verification of Individual Customers for Customer Due Diligence
Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions for Financial Institutions
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Money Laundering in the Art, Collectibles, and Luxury Goods IndustryBrandonRuse1
Money laundering and fraud cases in the rare art and luxury goods industry are increasing as the gap between resources and budgets is being widened by COVID-19.
Score card template for MSME lending with objective to create automatic underwriting engine using flow based lending framework. Data points can e taken from various sources like GST portal, Account statement, UPI, India stack, Bharat bill payment, Digilocker to create robust underwriting engine.
Research paper - Forensic investigation, due diligenceHarsh Chitroda
Topic: Importance of Business Intelligence Services - Forensic Investigation, Due diligence in the current business scenario. The type of research method used in the paper was a qualitative one and obtained from real experience working at Deloitte.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Money Laundering in the Art, Collectibles, and Luxury Goods IndustryBrandonRuse1
Money laundering and fraud cases in the rare art and luxury goods industry are increasing as the gap between resources and budgets is being widened by COVID-19.
Score card template for MSME lending with objective to create automatic underwriting engine using flow based lending framework. Data points can e taken from various sources like GST portal, Account statement, UPI, India stack, Bharat bill payment, Digilocker to create robust underwriting engine.
Research paper - Forensic investigation, due diligenceHarsh Chitroda
Topic: Importance of Business Intelligence Services - Forensic Investigation, Due diligence in the current business scenario. The type of research method used in the paper was a qualitative one and obtained from real experience working at Deloitte.
Advisory to Financial Institutions on E-Mail Compromise Fraud SchemesRyan Renicker CFA
"The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to help financial institutions guard against a growing number of e-mail fraud schemes, in which criminals
misappropriate funds by deceiving financial institutions and their customers into conducting wire transfers.
This advisory also provides red flags—developed in consultation with the Federal Bureau of Investigation (FBI) and the U.S. Secret Service (USSS)—that financial institutions may use to identify and prevent such e-mail fraud schemes."
Source: FinCEN Advisory FIN-2016-A003, September 6, 2016
A slide show that I compiled for my post master's certificate program, through Northcentral University, in Business Administration, with a specialization on Advanced Accounting. This is assignment 5 Consumer Fraud Prevention.
Regulations, compliance and overall risk management place a significant operational burden on financial services.
Online lenders are no different. You have to comply with multiple regulatory requirements, and you are- like any other financial service- very susceptible to fraud.
If you want to prevent and reduce loan application fraud, your strategy and fraud detection system should include a combination of identity verification, account onboarding protection, and account monitoring.
In this post, we’ll explain how identity verification and Know Your Customer processes are related, and how you can expand them for better fraud coverage.
We’ve also provided specific recommendations for identity verification security tests, and account origination protection strategies that can help you prevent fraud during the loan application process.
The goAML application is a UNODC strategic response to financial crime including money laundering and terrorist financing. The goAML application has been developed by the Information Technology Service of UNODC in partnership with the UNODC Global Programme Against Money Laundering. It is an integrated database and intelligent analysis system intended for use by Financial Intelligence Units worldwide.
http://goaml.unodc.org/goaml/en/index.html
LAWYER IN VIETNAM DR. OLIVER MASSMANN – E-COMMERCE - THE WORLD BANK IS ASKING...Dr. Oliver Massmann
LAWYER IN VIETNAM DR. OLIVER MASSMANN – E-COMMERCE - THE WORLD BANK IS ASKING DUANE MORRIS VIETNAM ON THE LOGISTICS FOR E-COMMERCE – HERE ARE OUR ANSWERS:
Summary description of an existing system that prevents doctor shopping. Patient prescription patterns are checked for the doctor before writing a new prescription. For the pharmacist, the claim is matched against valid prescriptions, and the filling of similar prescriptions are checked before drugs are dispensed.
Describes a joint CMS/WellPoint voluntary project that demonstrates the effectiveness of Castlestone's VisitEye in preventing many forms of outpatient insurance fraud, in this case Durable Medical Equipment (DME)
Advisory to Financial Institutions on E-Mail Compromise Fraud SchemesRyan Renicker CFA
"The Financial Crimes Enforcement Network (FinCEN) is issuing this advisory to help financial institutions guard against a growing number of e-mail fraud schemes, in which criminals
misappropriate funds by deceiving financial institutions and their customers into conducting wire transfers.
This advisory also provides red flags—developed in consultation with the Federal Bureau of Investigation (FBI) and the U.S. Secret Service (USSS)—that financial institutions may use to identify and prevent such e-mail fraud schemes."
Source: FinCEN Advisory FIN-2016-A003, September 6, 2016
A slide show that I compiled for my post master's certificate program, through Northcentral University, in Business Administration, with a specialization on Advanced Accounting. This is assignment 5 Consumer Fraud Prevention.
Regulations, compliance and overall risk management place a significant operational burden on financial services.
Online lenders are no different. You have to comply with multiple regulatory requirements, and you are- like any other financial service- very susceptible to fraud.
If you want to prevent and reduce loan application fraud, your strategy and fraud detection system should include a combination of identity verification, account onboarding protection, and account monitoring.
In this post, we’ll explain how identity verification and Know Your Customer processes are related, and how you can expand them for better fraud coverage.
We’ve also provided specific recommendations for identity verification security tests, and account origination protection strategies that can help you prevent fraud during the loan application process.
The goAML application is a UNODC strategic response to financial crime including money laundering and terrorist financing. The goAML application has been developed by the Information Technology Service of UNODC in partnership with the UNODC Global Programme Against Money Laundering. It is an integrated database and intelligent analysis system intended for use by Financial Intelligence Units worldwide.
http://goaml.unodc.org/goaml/en/index.html
LAWYER IN VIETNAM DR. OLIVER MASSMANN – E-COMMERCE - THE WORLD BANK IS ASKING...Dr. Oliver Massmann
LAWYER IN VIETNAM DR. OLIVER MASSMANN – E-COMMERCE - THE WORLD BANK IS ASKING DUANE MORRIS VIETNAM ON THE LOGISTICS FOR E-COMMERCE – HERE ARE OUR ANSWERS:
Summary description of an existing system that prevents doctor shopping. Patient prescription patterns are checked for the doctor before writing a new prescription. For the pharmacist, the claim is matched against valid prescriptions, and the filling of similar prescriptions are checked before drugs are dispensed.
Describes a joint CMS/WellPoint voluntary project that demonstrates the effectiveness of Castlestone's VisitEye in preventing many forms of outpatient insurance fraud, in this case Durable Medical Equipment (DME)
Even after the long permitting process Altos Escondidos SA has been following all international Banking laws in KYC ( Know your Client ). Altos Escondidos SA has declined several JV partner and funding offers from Far- East and Latin America as Altos Escondidos SA has a very tight policy on "proof of funds" and " Source of funds " in compliance with ALL International Banking laws.
Frequently Asked Questions on Anti-Money LaunderingZiaullah Mirza
Frequently Asked Questions on
Anti-Money Laundering,
Countering Financing of Terrorism and Targeted Financial Sanctions for
Designated Non-Financial Businesses and Professions & Non-Bank Financial Institutions
Outsourcing business functions has become an accepted approach to improving revenue and creating new business opportunities for companies in all industries; banks are no exception. In the last 10 years, the regulatory environment and consumer expectations for a personalized, connected experience in an increasingly mobile and social world are new challenges being managed by an outsourcing business model. While business growth and regulatory compliance are perhaps the two most critical business drivers behind a financial service firm's decision to outsource, the outsourcing solution itself creates a risk that must be managed and regulatory requirements that must be met.
Cyber risk related to information security is growing. A potentially huge exposure for transportation companies is the personal data of their current and prospective drivers.
Explore the crucial stages of Customer Due Diligence (CDD) in this comprehensive PDF guide. Understand how to effectively identify and verify customer identities, assess risk levels, and implement ongoing monitoring to ensure compliance and prevent financial crimes. Learn the importance of maintaining accurate records and performing enhanced due diligence for high-risk customers. This document is essential for financial institutions and businesses aiming to enhance their CDD processes, safeguard against money laundering, and adhere to regulatory requirements. Enhance your knowledge on effective CDD practices today.
Blockchain for Trade Finance: Payment Instrument Tokenization (Part 4)Cognizant
Digitizing payment instruments in post-shipment financing on blockchain prevents invoicing fraud, reduces business risk for financial institutions and lowers overhead when issuing and managing trade receivables.
The procedures employed by financial organizations to gather and assess pertinent data about a customer or potential customer are known as customer due diligence.
Unlocking Insights: AI-powered Enhanced Due Diligence Strategies for Increase...RNayak3
Explore how a risk-based approach to Enhanced Due Diligence can deliver effective Anti-Money Laundering (AML) compliance and monitoring in banking and financial services.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only.
Compiled and designed by Mark Fullbright , Certified Identity Theft Risk Management Specialist™ (CITRMS) as a free service for businesses to protect themselves and reduce their exposure to identity theft. Stay Safe, Stay Secure
ECCS Executive Certificate in Cyber Security 4.0Ziaullah Mirza
The development of technologies always has impacts, in positive or negative ways, on businesses, cultures, economies and even on countries. Information Technology is one of the most effective tools with rapid development characteristics for itself as well as businesses around the globe. Cyber Security is one of the best branch or modern tools of Information Technology with respect to security concerns and risk management factors. Information technology is highly integrated into our everyday lives. As a society, we have gone digital. We play, learn, socialize, communicate, and do business online. While cyberspace brings significant benefits, our ever-increasing reliance on it, causing or creating new and significant vulnerabilities.
Voice of Green Hat, brought an innovative research-based certificate in cyber security along with a number of other cutting-edge technological certifications. This research-based certificate is called ECCS. Executive certificate in Cyber Security (ECCS) provides a number of researches in special innovative skills, highly brainstorming strategy to tackle the problems and multidimensional techniques to countermeasure the cyber- attacks and hacking in the cyber space. Not only this, ECCS also covers intermediate skills for digital forensic investigation, risk management and competitive intelligence to understand the attacker’s approaches as well as having deep understanding with today’s Cyber War scenario. This certificate contains six modules of Cyber security & Law; Ethical Hacking & Countermeasure; Digital Forensic Investigation; Competitive Intelligence; Research & Development and Important Demanded Skills
SPECIALIZATION:
• Digital Transformation
• Web & Apps Penetration Testing
• Competitive Intelligence
• Digital Forensic Intelligence
• Digital Economy Vs 5th Gen War Cyber warfare
• Disease-X Alert, Monitoring & Countermeasure
• Industrial Revolution & Hands on Applications for IR4.0
• Implementation of AR, VR, XR and Holo-Lenses
• Flying & Traditional Robotics
• Mind Computing & Research
• Financial Technologies
ابدأ # عملك في # باكستان
معظم # التصنيع الاقتصادي # / # شبكة التوزيع / التسويق
الوصول إلى 1813 #Million Customer #Market
#باكستان
#الصين
#تركيا# و# أذربيجان
#أفغانستان# و # أوزبكستان
#تركمانستان# و طاجيكستان
#الشرق الأوسط
سجل شركة في غضون 3 أيام وابدأ في الاستفادة من الطريق والقطار والطيران والسفن
المجالات الرئيسية للأعمال والاستثمار هي:
# التجارة العامة # التصدير# التعليم_التدريب# الاستثمار_التمويل # العقارات للبناء # التصنيع# التوزيع# الاستشارات# الخدمة# المعلومات# تكنولوجيا# السفر# السياحة
Innovation
Commandment
solutions
providing under
“Green Hats
Technologies,
Voice of Green
Hats & Poiema
Solutions
Pakistan”
Green Economy Transformation
Artificial, Business & Competitive
Intelligence
Industry 4.0
Digital Transformation & Economies
Economic Reforms (Empowerment)
A. Economic Enhancement, Advancement & Empowerment Tools
B. Economic Monitoring & Countermeasures
C. Digital Economy
D. Economic Trending (#Halal, #Kosher, #Halal-Vegetarian, #Kosher-Vegetarian etc.,)
E. Economic Prosperity Factors & Agreements [ integrated economy]
F. Future Economy & Strategies
G. Peace & Harmony (Interfaith, Ahli Kitab [Judaism, Christianity, Islam] Religious Harmony, IntraFaith)
H. Women Empowerment (Tech, Business, High Skills) – Global Empowerment Program
Economy Recovery Ahead!
3. Social Research for Improvement (Welfare & Prosperity)
4. Technological Transformation (Disruptive Technologies and Application)
5. Take Action On Issues (Girls & Women, Health. Education, Finance & Innovation, Food & Hunger, Water & Sanitation, Environment, Citizenship)
6. Decision Making (Using all above factors)
Intelligence in Businesses
Competitiveness & Artificial Methods
Guidance on Beneficial Ownership
Anti-Money Laundering,
Countering Financing of Terrorism and Targeted Financial Sanctions for
Financial Institutions,
Designated Non-Financial Businesses and Professions and Non-Bank Financial Institutions
12 part framework to structure safety assessment for autonomous drivingZiaullah Mirza
NHTSA: National Highway Traffic Safety Administration
An agency of the Executive Branch of the U.S. government who has developed a 12-part framework to structure safety assessment for autonomous driving.
Workfare versus Welfare: Incentive Arguments for Work Requirements in Poverty...Ziaullah Mirza
Workfare versus Welfare: Incentive Arguments for Work
Requirements in Poverty - Alleviation Programs
American Economic Association
BESLEYANDC OATE:W ORKFARVES . WELFARE
THE AMERICAN ECONOMIC REVIEW
Social welfare and the rate structure a new look at progressiveZiaullah Mirza
Social Welfare and the Rate Structure: A New Look at Progressive Taxation
Joseph Bankman and Thomas Griffith, Social Welfare and the Rate Structure: A New Look at Progressive Taxation, 75 California Law Review 1905-1968 (December 1987).
Improving the Measurement of Poverty
By
Rebecca M. Blank
Mark H. Greenberg
1. Introduction
2. The Problem: An Out-of-Date Measure of Poverty
3
. An Improved Measure, Based on the Recommendations of the NAS Panel
4. Making Specific Choices for the New Poverty Measure
5. Recommendations Regarding How to Implement the Approach
6. An Example of What This Might Mean for the Poverty Rate
7. Conclusion
Appendix: Detailed Calculations for the Recommended New Poverty Measure
References
The index, which ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. More than two-thirds of countries score below 50 on this year’s CPI, with an average score of just 43.
It reveals that the continued failure of most countries to significantly control corruption is contributing to a crisis in democracy around the world. While there are exceptions, the data shows that despite some progress, most countries are failing to make serious inroads against corruption.
Transparency International e.V. is an international non-governmental organization which is based in Berlin, Germany, and was founded in 1993. Its nonprofit purpose is to take action to combat global corruption with civil societal anti-corruption measures and to prevent criminal activities arising from corruption
High commodity dependence and structural barriers hindering long-term growth prospects of many developing countries
Intensifying trade tensions between the major economies poses a significant risk to the global
growth outlook
Recent financial market turbulence exposes vulnerabilities in several developing economies
IEDC Advisory Committee Handbook
Welcome to an IEDC Advisory Committee. We are glad you are here and would like to thank you for volunteering your time to support the work of IEDC and its mission to champion the economic development profession. IEDC values your commitment and the economic development community relies on your expertise and engagement in this important committee work.
We hope that you will gain from the experience as much as you contribute to it. The Advisory Committees are an excellent place to network with your peers, engage with the challenges of strengthening our shared profession, and learn about trends and topics that will impact the work that we do.
We have developed this Handbook to help orient you to the role of Advisory Committees in IEDC’s work and explain what the committees do. The Handbook also outlines the policies and procedures that govern IEDC Advisory Committees.
Talk on CP-TPP Comprehensive and Progressive Agreement for Trans-Pacific Part...Ziaullah Mirza
CP-TPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The CPTPP was signed by all 11 participating countries - Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam - on 8 March 2018 in Santiago, Chile. Signing is an indication that the 11 countries accept the outcome of the negotiations and will start their domestic process to enable their ratification of the Agreement in order to bring the Agreement into force
CANADA - JAPAN ECONOMIC PARTNERSHIP AGREEMENTZiaullah Mirza
Report of the Joint Study on the Possibility of a Canada-Japan Economic Partnership Agreement
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/japan-japon/study-report_rapport-etude.aspx?lang=eng
#CanadaMalaysia #MalaysiaCanada #IloveCanadaInMalaysia #IloveCanadaInASEAN #IloveCanadaInAsia
In 2012, Canada and Japan launched negotiations towards an Economic Partnership Agreement (EPA).
The Canadian Agri
-
food Trade Alliance (CAFTA) supports the Canadian government’s efforts to expand
trade and economic ties with Japan. However, to be successful, the Canada
-
Japan EPA must include a
solid agriculture package
Canada - Australia Trade and Economic Cooperation Arrangement (TECA)Ziaullah Mirza
Trade and Economic Cooperation Arrangement Between
the Government of Canada and the Government of
Australia
Acknowledging
the mutual benefits that result from long
-
term a
nd stable economic relations
and the further development of their trade and investment relations;
Reaffirming
, their shared strong commitment to an effective Agreement Establishing the
World Trade Organization, based on clear and mutually advantageous rule
s governing
multilateral trade;
Recognizing
their respective rights and obligations under the Agreement Establishing the
World Trade Organization and other multilateral and bilateral
instruments of
cooperation;
Noting
the importance they attach to the furt
her development of the role of the Asia Pacific
Economic Cooperation (APEC) in the context of closer economic cooperation in the
Asia/Pacific region, particularly the common goals expressed in the Bogor Declaration;
Convinced
that the establishment of a fr
amework for consultations between them on trade
and investment will contribute to the growth of trade and investment between the two
countries;
Canada & Australia - Perfect partners for trade & investmentZiaullah Mirza
With similar federal government institutions, a common legal
heritage, an abundance of natural resources, wealthy
populations and open markets, Canada and Australia have
so much in common.
Such physical, constitutional and commercial
similarities have helped to create strong bilateral
investment ties between the two countries
and strong services exchange.
Free Trade Agreements - A TOOL FOR ECONOMIC PROSPERITYZiaullah Mirza
Canada’s ongoing economic prosperity is closely tied to our ability to maintain free trade
agreements that leverage benefits, minimize challenges and grant Canadians businesses access to
increased global opportunities. Over the past few decades, Canada negotiated and signed a
number of new free trade agreements, including an ambitious agreement with the European
Union. Trade negotiations are also currently underway with a number of other trading partners.
As we continue to move forward with this trade agenda, it remains critically important that we
negotiate and implement agreements that effectively respond to the needs of Canadians.
It was within this context that the Standing Senate Committee on Foreign Affairs and
International Trade undertook a broad study of free trade agreements. From February to
November 2016, the Committee held 18 meetings and heard testimony from 53 witnesses. The
present report explores the benefits as well as the challenges associated with free trade
agreements. It also underscores the need of the Government of Canada in negotiating and
implementing free trade agreements in a broader context of economic policy with greater
consultation of Canadians
Malaysia Business Digital Economy
Malaysia Business Digital Economy
Malaysia Business Digital Economy
Malaysia Business Digital Economy
Malaysia Business Digital Economy
Donate to charity during this holiday seasonSERUDS INDIA
For people who have money and are philanthropic, there are infinite opportunities to gift a needy person or child a Merry Christmas. Even if you are living on a shoestring budget, you will be surprised at how much you can do.
Donate Us
https://serudsindia.org/how-to-donate-to-charity-during-this-holiday-season/
#charityforchildren, #donateforchildren, #donateclothesforchildren, #donatebooksforchildren, #donatetoysforchildren, #sponsorforchildren, #sponsorclothesforchildren, #sponsorbooksforchildren, #sponsortoysforchildren, #seruds, #kurnool
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Monitoring Health for the SDGs - Global Health Statistics 2024 - WHOChristina Parmionova
The 2024 World Health Statistics edition reviews more than 50 health-related indicators from the Sustainable Development Goals and WHO’s Thirteenth General Programme of Work. It also highlights the findings from the Global health estimates 2021, notably the impact of the COVID-19 pandemic on life expectancy and healthy life expectancy.
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
About Potato, The scientific name of the plant is Solanum tuberosum (L).Christina Parmionova
The potato is a starchy root vegetable native to the Americas that is consumed as a staple food in many parts of the world. Potatoes are tubers of the plant Solanum tuberosum, a perennial in the nightshade family Solanaceae. Wild potato species can be found from the southern United States to southern Chile
Synopsis (short abstract) In December 2023, the UN General Assembly proclaimed 30 May as the International Day of Potato.
Working with data is a challenge for many organizations. Nonprofits in particular may need to collect and analyze sensitive, incomplete, and/or biased historical data about people. In this talk, Dr. Cori Faklaris of UNC Charlotte provides an overview of current AI capabilities and weaknesses to consider when integrating current AI technologies into the data workflow. The talk is organized around three takeaways: (1) For better or sometimes worse, AI provides you with “infinite interns.” (2) Give people permission & guardrails to learn what works with these “interns” and what doesn’t. (3) Create a roadmap for adding in more AI to assist nonprofit work, along with strategies for bias mitigation.
2017 Omnibus Rules on Appointments and Other Human Resource Actions, As Amended
Guidance on verification 01092020
1. Date: 1 September 2020
Guidance on
Verification of Individual Customers for
Customer Due Diligence
Anti-Money Laundering,
Countering Financing of Terrorism and
Targeted Financial Sanctions for
Financial Institutions,
Designated Non-Financial Businesses and
Professions and Non-Bank Financial
Institutions
(AML/CFT and TFS for FIs, DNFBPs and NBFIs)
2. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 1 of 17
TABLE OF CONTENTS
Part A: Overview
1.0 Foreword .......................................................................................................2
2.0 Objectives.......................................................................................................2
Part B: Guidance
3.0 CDD: Customer Identification and Verification ...............................................4
4.0 Application of Risk-based Approach ..............................................................6
5.0 Reliable and Independent Source of Documents, Information and Data .......8
6.0 Illustration of Application of Risk-based Approach .......................................13
3. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 2 of 17
Part A: Overview
1.0 Foreword
1.1 This Guidance is intended to provide clarification and recommended practices
in relation to identification and verification of the customer due diligence (CDD)
requirements under the Anti-Money Laundering, Countering Financing of
Terrorism and Targeted Financial Sanctions for Financial Institutions,
Designated Non-Financial Businesses and Professions and Non-Bank
Financial Institutions (AML/CFT and TFS for FIs, DNFBPs and NBFIs) Policy
Documents (hereinafter referred to as Policy Documents).
1.2 The Guidance is not intended to replace any requirements in the
abovementioned Policy Documents. Reporting institutions should not regard
the information in the Guidance as exhaustive nor should it be used as evidence
of compliance.
1.3 Any updates to the Guidance will be notified to the reporting institutions from
time to time. Should there be any need to obtain further clarification or
explanation on the Guidance, enquiries may be mailed to the following
addresses:
(i) For FIs : amlpolicy@bnm.gov.my
(ii) For DNFBPs & NBFIs : fied@bnm.gov.my
2.0 Objectives
2.1 An effective CDD is the cornerstone of a robust AML/CFT and TFS program.
The CDD process involves identifying and verifying the identity of customers as
well as understanding the purpose and nature of business relationship.
2.2 The objective of this process is fundamentally to:
(a) prevent reporting institutions from creating anonymous and fictitious
accounts1; and
(b) assess the extent of money laundering and terrorism financing (ML/TF)
risks posed by customers and businesses, for the development of
appropriate controls and mitigation that commensurate with identified
risks.
1 Section 16 of the AMLA prohibits RIs to open or operate anonymous account or account which is in a fictitious,
false or incorrect name.
4. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 3 of 17
2.3 Identification in the context of CDD refers to the process where reporting
institutions obtain information about customers in accordance with the Policy
Documents.
2.4 Verification refers to the process of confirming the customers’ information
collected at the identification stage against documents, data or information from
reliable sources, independent of the customers.
2.5 Reporting institutions are expected to determine the extent of verification,
depending on the identified ML/TF risks. For example, where there are higher
ML/TF risks, the extent to which information must be verified should expand,
while where ML/TF risks are lower, verification process may be more simplified.
2.6 This document aims to clarify the definition of customer’s identity, factors to
guide risk-based verification, types of reliable and independent sources of
documents, information and data, as well as suggested risk-based applications
for verification particularly with regard to individual customers, and where
applicable, to beneficial owners.
5. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 4 of 17
Part B: Guidance
3.0 CDD: Customer Identification and Verification
3.1 The mandatory components of CDD as outlined in the Policy Documents entail
the following processes:
Paragraph 14 of the Policy Documents on CDD:
Identification of customer, beneficial owner and
whenever applicable, person conducting
transaction
Objective: To enable reporting institutions to
distinguish the individual from any other person they
are dealing with and whether the person is acting on
behalf of another.
Verification of the information through reliable and
independent documentation, electronic data or
any other measures deemed necessary
Objective: To ensure that the information about the
individual is accurate and up-to-date.
Understanding the purpose and nature of business
relationship between the reporting institutions and
the customer
Objective: To assess whether the business
relationship is in line with the reporting institutions’
expectation and to provide the reporting institutions
with a meaningful basis for ongoing monitoring.
3.2 Similar verification measures should be adopted for persons conducting
transactions on behalf of a customer.
Customer identification
3.3 Reporting institutions are required to obtain, at minimum, a prescriptive list of
identification information from customers and beneficial owners. However, it
should be noted that the list is non-exhaustive, hence additional information
may be obtained by reporting institutions, based on their risk appetite to
facilitate risk profiling, wherever necessary.
6. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 5 of 17
Paragraph 14 of the Policy Documents:
Minimum list of identification information as outlined in
the Policy Documents2:
Full name;
National Registration Identity Card (NRIC), number or
passport number or reference number of any other
official documents of the customer or beneficial owner;
Residential or mailing address;
Date of birth;
Nationality;
Occupation;
Name of employer or nature of self-employment or
nature of business;
Contact number; and
Purpose of transaction.
Reporting institutions may obtain additional information
based on AML/CFT risks appetites
Example: e-mail address, gender, marital status.
What constitutes ‘identity’?
Identity refers to official identity that is based on
characteristics, attributes or identifiers of a person that
establish the person’s uniqueness in the population,
recognized by the country for regulatory or other official
purposes. The identity of an individual has a number of
principal and fixed aspects, which include given name, date
of birth, official identification number or biometric
characteristics e.g. facial and thumbprint.
There may also be information that are fluid but are central to
distinguish the identity of a person from the population,
particularly for persons with common names including
nationality, residential address, employment and business
career. This information, however, may change over time.3
2 For financial sector’s reporting institutions, lesser information may be obtained from customers if
they qualify for Simplified CDD under the Policy Documents for FIs, that, include full name, NRIC,
number or passport number or reference number of any other official documents of the customer or
beneficial owner, residential or mailing address, date of birth, nationality. The ‘simplified CDD’
regime is not applicable to DNFBPs.
3 Refer to paragraph on Electronic Evidence.
7. Guidance on Verification of Individual Customers for Customer Due Diligence
Page 6 of 17
Customer Verification
3.4 Reporting institutions should verify information of their customers and beneficial
owners, collected during identification stage or at any point of the business
relationship, as per verification requirements.
3.5 Verification of identity must be based on documents or information obtained
from a reliable source, which is independent of the customer.
Documents, data or information issued or made available by
an official body are to be regarded as being independent of a
person even if they are provided or made available to the
reporting institutions by or on behalf of that person.
Additionally, for electronic or digital data and information, their
reliability and independence would depend on the assurance
levels of the systems or sources in light of ML/TF, fraud, and
other risks including cybersecurity risks4.
4.0 Application of Risk-Based Approach
4.1 Reporting institutions may adopt a risk-based approach to determine the
manner of performing verification, in ensuring it is satisfactorily completed:
(a) the extent or volume of information collected;
(b) types of reliable document, data and information; and
(c) the manner/technology used.
4.2 In this regard, reporting institutions should take into account any higher risk
circumstances as laid out in the Policy Documents5, which include, but are not
limited to:
(a) the nature of the product or service sought by customers;
(b) the nature and length of any existing or previous relationship between
customers and the reporting institutions;
4 Refer to paragraph on Electronic Evidence.
5 Please refer to paragraph 10 of the Policy Documents.
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(c) the nature and extent of any assurance from other reporting institutions
that may be relied on; and
(d) whether the customer is physically present.
4.3 For transactions involving cross-border wire transfer under Paragraph 19.2.1(a)
of the Policy Documents6, reporting institutions may rely on the residential
address or date of birth obtained and verified during the CDD process or during
on-going CDD, if the reporting institution is satisfied that such information are
up to date.
Beneficial owner
4.4 The verification process for a beneficial owner is different from an individual
customer. Although the identity of both customer and beneficial owner must be
verified through an independent and reliable source, reporting institutions are
only expected to take appropriate and reasonable measures so that they are
satisfied with the identity of the beneficial owner, having regard to ML/TF risks
associated with the customer and business relationship.
Framework for the application of risk-based approach
4.5 Reporting institutions should consider incorporating in their AML/CFT risk
management policies and procedures a framework for the application of risk-
based approach with regards to the verification of customers.
6 Applicable to PD for Financial Institutions only.
Recommended Practice for Reasonable Measures include:
Make use of records of beneficial owners in the public
domain, ask customers for relevant data, or require
evidence of the beneficial owner’s identity, on the basis
of documents or information obtained from a reliable
source which is independent of the customer.
In low risk situations, it may be reasonable for the
reporting institution to confirm the beneficial owner’s
identity based on the information supplied by the
customer. This may include a declaration confirming and
recognizing the identity of the beneficial owner, be it by
the customer, trustees or other persons whose identities
have been verified.
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5.0 Reliable and Independent Sources of Documents, Information and Data
5.1 There is no restriction on the form of evidence to be taken by reporting
institutions in verifying the identity. Reporting institutions may accept either
physical documents, electronic or digital information and data, or a combination
of both.
Documentary evidence
5.2 In the event where reporting institutions use documentary evidence to verify a
person’s identity, reporting institutions are encouraged to sight the original
copies of the documents and retain records of them, in line with record keeping
requirements in the Policy Documents.
5.3 Documents purporting to offer evidence of identity differ in their level of integrity,
reliability and independence and may come from a number of sources as
follows:
(a) Documents issued for the purpose of official identification bearing
photographs and without photographs;
(b) Documents issued by courts, government departments, public sector
bodies, or local authorities;
(c) Bank statements, or credit/debit card statements issued by regulated
financial sector in Malaysia; and
(d) Documents issued by other regulated organizations, for instance a
regulated utility company.
5.4 Reporting institutions are recommended to verify customers’ identity using the
following types of documents which are viewed as offering a high level of
reliability and independence for verification:
Recommended Practice
The framework may include:
a correlation list of the documents, information or data
accepted for each risk class.
assessment of the level of integrity, reliability and
independence of each document, data or information.
Where appropriate, the level of reliability required may
be the result of the combined use of two or more
supporting documents.
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Official and valid identification documents issued by
certain government departments with photograph
Features that contribute to reliability:
Primary identification document (ID) that is widely
recognised, used and accepted by government and
private sector in Malaysia as identification,
authentication and authorisation for specific services.
The photograph enables reporting institutions to
conduct visual review to reduce risk of impersonation
and identity theft.
Examples:
ID issued by the National Registration Department
including NRIC, MyTentera, MyPR, and MyKAS.
Passport issued by Immigration Department of
Malaysia.
Driving licence bearing photograph issued by the Road
Transport Department of Malaysia in view of its
interlinkages with NRIC.
5.5 Reporting institutions may also accept official and valid identification documents
issued by certain government departments without photograph. In this instance,
reporting institutions are recommended to increase the level of reliability and
corroborative value of the documents with other additional independent and
reliable documents as set out in paragraph 5.3 above.
Official and valid identification documents issued by
government departments without photograph, with
additional corroborating documents.
Examples, MyKid, birth certificate and pension card.
Features that contribute to reliability:
ID that is recognised by the government and private
sector in Malaysia as identification, authentication and
authorisation for specific services.
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Supported by corroborative documents such as –
In case of a child below the age of 12, ID of the
parent/guardian.
Current bank statements issued by banks including
development financial institutions licensed and
incorporated in Malaysia.
Current utility bills for specific duration as determined by
reporting institutions.
Quit rent and assessment notice as issued by state
municipal councils.
5.6 For foreigners, reporting institutions are recommended to accept only official
and valid foreign passport issued by a foreign government, and if applicable, a
visa to enter Malaysia.
In the event where foreigners are unable to produce passport,
such as refugees, reporting institutions should consider:
Keeping records of their assessment on the challenges
and proposed measures to verify the identity of the
customer (at minimum, the name or date of birth).
Accepting as identity evidence; a document, letter, or
statement from United Nations or its agency (examples,
United Nations High Commissioner for Refugees cards)
or appropriate person who knows the individual, that
indicates that the person is who she/he says she/he is.
5.7 Reporting institutions are advised to refrain from accepting an expired passport
and/or visa, if applicable, at the initial stage of establishing business relationship
with foreign customers.
Recommended Practice
Passport and other international documents should be
valid for a period for at least six (6) months before expiry
dates at the time of CDD. The validity of these
documents must be monitored as part of the on-going
due diligence process.
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5.8 Reporting institutions should take cognizance of the type of documents which
are more easily forged than others.
5.9 Reporting institutions should consider prescribing appropriate measures and
controls that leads to a reasonable conclusion that the documents presented
are not forged or falsified. This includes referring to other regulatory sources as
set out in paragraph 5.15 and additional measures in paragraph 5.16 below:
Electronic evidence
5.10 Reporting institutions may use electronic or digital data and information to verify
identity, for example digital identity or e-KYC solutions, either on its own or
taken together with documentary evidence.
5.11 Similar to documentary evidence, electronic or digital data and information are
also subject to the reliability and independence test.
5.12 In assessing whether an electronic or digital data and information is sufficiently
reliable and independent to prove identity for the purpose of CDD, reporting
institutions are recommended to:
(a) understand the assurance levels of the systems or sources including the
underlying data they relied on, technology, architecture and governance
to determine their reliability and independence;
Examples of Current Practice
Use of NRIC reader
FIs:
Reporting institutions commonly require NRIC for
identification and verification where the card terminal is
used to read biometric (thumbprint) and NRIC
information.
DNFBPs:
Businesses employ the use of NRIC reader that links
the NRIC to its holder via thumbprint to avoid misuse of
NRIC to conduct transactions such as false signing of
legal documents in the client’s capacity. There is also
an initiative at the association level to develop a system
that links details of the customer to the NRIC reader for
verification purpose. This system is being deployed by
the industry players.
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(b) given the assurance levels, make a risk-based determination of whether
it is appropriately reliable, independent in light of the ML/TF, fraud, and
other risks including cybersecurity risks; and
(c) fulfill requirements as set out in the Electronic Know-Your-Customer (e-
KYC) Policy Document7.
5.13 Reporting institutions are advised to incorporate within their AML/CFT risk
management policies and procedures information on-
(a) the assessment of factors in paragraph 5.12 above; and
(b) determination whether there is a need for additional measures as
specified in paragraph 5.16 to supplement the use of electronic evidence
in certain circumstances including in higher ML/TF risk situations or by
virtue of reporting institutions own AML/CFT, anti-fraud and general risk
management policies.
5.14 Reporting institutions shall document and record their internal assessments to
be made available to supervisors or the competent authority upon request.
5.15 Reporting institutions are encouraged to refer to policy documents or guidances
issued by Bank Negara Malaysia and other standard setting bodies, pertaining
to verification through this means.
Additional verification measures
5.16 Reporting institutions should consider applying additional verification measures
to mitigate the risk of impersonation fraud in circumstance where there is
uncertainty over the customers’ identity. This includes whenever:
(a) copies of original documents are used;
(b) customers are not met face-to-face in the process of establishing
relationship;
(c) there is a need to supplement the use of electronic or digital data and
information for verification; or
(d) there is doubt on the legitimacy and authenticity of the documents
provided by the customer.
7 BNM/RH/PD 030-10 Issued on: 30 June 2020
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5.17 The additional verification measures may consist of anti-fraud measures that
the reporting institutions routinely undertake as part of their existing CDD
procedures.
5.18 The following are examples of additional measures, which are non-exhaustive
and should be undertaken to commensurate with the assessed ML/TF risks:
Corroborating copies of original documents with the
National Registration Department database or the
Immigration Department of Malaysia databases,
telecommunication companies, sanctions lists issued by
credible domestic or international sources.
Requiring the first payment to be carried out through an
account in the customer’s name with a bank incorporated
and registered in Malaysia.
Video or conference call with the customer prior to
opening the account and before transactions are
permitted, for the purpose of comparing the physical
identity of a customer with copies of original documents
and to verify additional aspects of identity information
collected during identification stage.
Internet sign-on following verification where the
customer uses security codes, tokens, or passwords,
which have been set up during account opening stage.
Copies of original documents to be certified by an
appropriate person. Appropriate persons refer to
solicitors, police, court officials, medical doctor,
commissioner of oath, notary, or any credible person
authorized to certify documents.
6.0 Illustrations of application of risk-based approach
Verification in ‘normal risk’ cases
6.1 “Normal risk” here refers to all situations that are not recognised as presenting
a high risk or low risk in the context of the individual risk assessment. In this
situation, reporting institutions may consider applying documentary and
electronic data, source and information as set out above, or a combination
thereof.
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Recommended practices:
For local customers, reporting institutions commonly
require NRIC for identification and verification, where the
card terminal is used to read biometric (thumbprint) and
NRIC information.
Where residential and NRIC address are different, utility
bills will be required from customers to justify such
mismatch.
Reporting institutions may also require supplementary
documents to justify account-opening purposes
(examples: university admission/ offer letter for student
accounts, employer referral letter for salary accounts,
etc.).
For student accounts, reporting institutions may also
establish a list of learning institutions in demarcating
level of ML/TF risk.
Similar requirements are applied to foreign nationals,
where the key difference is, passport and travel visa are
used as main photo-bearing government-issued
evidences for identity verification purposes.
Verification in ‘higher risk’ cases
6.2 “Higher risk” here refers to circumstances where reporting institutions assess
the ML/TF risks as higher, taking into account risk factors arising from customer,
country or geographic location of customer, type of product, service, transaction
or delivery channel8.
6.3 In higher risk situations, reporting institutions’ AML/CFT risk management
policies and procedures should consider only authorising the use of the
documents and information that offer the most reliable information, and where
appropriate, require the use of a combination of sources of documents, data
and information, to increase level of reliability and verification performed.
8 Description of ‘higher risk’ in paragraph 6 of the Policy Documents.
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Recommended Practices
Face-to-face verification
Reporting institutions to sight and make copies of valid official
identification documents with photograph, or in the case of a
foreigner, passports/visa.
Non face-to-face (electronic and digital source of data and
information)
Reporting institutions to heighten the assurance levels, by
assessing the necessity to conduct additional verification
measures to supplement verification.
6.4 Reporting institutions should be guided by the list of verification documents,
data or information which are acceptable in higher-risk situations based on a
thorough assessment to demonstrate that their high level of reliability is
appropriate in view of the high level risk and the nature of the ML/TF risk
incurred.
Verification in ‘low risk’ cases
6.5 Where relevant, if the risk assessment has established a case of low ML/TF
risk, and if reporting institutions’ AML/CFT risk management policies and
procedures explicitly specify that simplified due diligence measures can be
applied, or lead to the conclusion that the risk level is low, verification remains
obligatory. However, reporting institutions may develop appropriate and
proportionate measures in their AML/CFT risk management policies and
procedures in view of such lower risks.
6.6 Naturally, all reliable and independent sources of documents and information,
which the reporting institutions have identified as eligible for verifying the
identity of the customer in a normal risks business relationship, are also
applicable in low-risks situations.
However, although a copy or electronic image of a supporting document is
insufficiently reliable in itself to be accepted for verification, it could be accepted
in certain circumstances where the relationship is subject to strict limitations
and safeguards (e.g. limited features of products and services) that can reduce
ML/ TF risks.
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As an example, for insurance products assessed as low
risk products, reporting institutions may obtain attestation
from:
Village Head (“ketua kampung”);
Human resource department of the corporate customer
on the identity of insured members of group policies and
board of the corporate entity on the authorized person
representing the company; or
Third party administrator (TPA) or hospital for verification
at claims stage.
6.7 Reporting institutions are expected to include, in their due diligence procedures
and measures, a correlation table of the supporting documents required for
each class of reporting risk, as well as a list of the circumstances in which
certain supporting documents need not be submitted.
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OVERVIEW OF CDD PROCESS
Official Identity
Documentary evidence Electronic or digital data
Official ID issued by the
government departments
with photograph
Official ID issued by the government
departments without photograph
Supported with corroborative
evidence: Documents issued by court,
government departments, local
authorities, regulated financial
institutions, other RIs, or regulated
utility companies
Copy of documentary
evidence are used
IDENTIFICATION
VERIFICATION
RIs may determine extent of verification using risk-based
approach (customer, country/geographical,
product/service/transaction or delivery channel risk factors)
See paragraph 14 of the Policy Document on the
information to be obtained from customer/ beneficial owner
Understand level of
trustworthiness and
confidence (assurance) of
data sources the providers
relied on, technology,
processes, governance and
other safeguards
Customers’ identity
verified non face-to-
face
Electronic or digital ID
verification, if
MEASURESCOMMENSURATEWITHML/TFRISKS
Face to face or otherwise, documentary or electronic sources of documents, data or information, verification
must be reliable, independent from customer
Beneficial
owners
Individual
Customer
Additional verification measures under paragraph 5.16 to 5.18 of this Guidance
under these circumstances:
Reasonable
measures to
verify, may
include
similar
verification
as per
customer, or
lesser having
regard to
ML/TF risks
OR