Syllabus A. Regulatory Environment A2. Money Laundering

A2e. Importance of Customer Due Diligence 8 / 11

Syllabus A2e)

Explain the importance of customer due diligence (CDD) also referred to as Know Your Customer (KYC) and recommend the information which should be gathered as part of CDD/KYC.

This is vital so as you know who you are dealing with - this is more than just getting their passports or certificates of incorporation (if they’re a company)

To know what is a suspicious transaction you must understand what their business patterns and models are

Also know where their income should come from, so any money laundering income would look suspicious

Client Acceptance Procedures

Identification procedures

  1. Know your Client information

    including... passports, driving licences, utility bills.

  2. Also company registration documents

  3. Their expected patterns of business

  4. Their business model

  5. Where their funds come from