Certain institutions or companies must meet the legal requirements regarding Customer Due Diligence. These CDD obligations are, inter alia, determining your customer’s identity and reporting unusual transactions. The CDD policy you must adhere to depends on which laws apply to you. Are you subject to the Anti-Money Laundering and Anti-Terrorist Financing Act? Then you are obligated to implement an honest CDD policy.
A good CDD policy ensures your services are not exploited or misused for malevolent purposes, such as money laundering, fraud and other criminal activities. Not only should you comply with the rules, your customers must also observe the laws and regulations. Therefore, you should gather all the information you need about your customer and define a CDD policy.
Merely gathering superficial information about your customers is not sufficient to honour the law. You must have a clear picture of the person you are doing business with. Investigations you conduct to gather information are comprehensive and thorough. Almost every customer due diligence is different. It can be time-consuming to check your customers manually, which is why many companies or institutions decide to put these legal obligations at the bottom of their priority list. This could endanger your company’s security.
To maintain control, it is important to identify your customers so you are not faced with any surprises.
The policy you stipulate is tailored to the scope and nature of your business. Furthermore, you are obligated to assess your policy with regularity and update it where necessary, based partly on the updated risk assessment of your business.
SCOPE Fintech Solutions offers “SCOPE CDD On Demand”. This service has been specially developed for organisations that must comply with the Wwft and the Sanctions Act, but do not have the (IT) capacity and/or resources to acquire and implement a CDD solution. SCOPE CDD On Demand offers organisations the option of outsourcing the CDD process to SCOPE FinTech Solutions. The supplied lists of persons and/or business associates are screened, checked and marked for periodic review when necessary. The results of the completed checks are incorporated into a detailed report on each person and presented with all the information required for compliance (audit) purposes and the customer file.