Entering into new business relationships is risky, because of the ultimate question that has to be dealt with: ‘Is this person or company really who they say they are?’ In business, we have to take active steps to know our customers and the risks. Customer Due Diligence has become an essential part in taking these steps.
You do not require any retraining as a CDD expert to take these steps, but it is important that these steps are completed. In doing so, you will avoid hefty fines and reputational damage.
The steps you will have to complete depend on the legal obligations your institution or company has to comply with, including the Sanctions Act and the Money Laundering and Terrorist Financing (Prevention) Act (Dutch Wwft).
The Sanctions Act
The Sanctions Act applies, inter alia, to offerors of crypto services, settlement companies, banks, investment companies and investment firms, payment institutions, clearing institutions, electronic money institutions (EMIs), pension funds, premium pension institutions, trust offices, insurers, and exchange institutions. In the Netherlands, the Sanctions Act 1977 forms the basis for the elaboration of national and international rules for the implementation of the international sanctions. This Sanctions Act is a so-called framework Act, offering the possibility to impose orders in council for compliance with the treaties or international agreements.
The Money Laundering and Terrorist Financing (Prevention) Act
The Money Laundering and Terrorist Financing (Prevention) Act applies, inter alia, to banks, financial institutions (e.g. leasing companies), credit institutions, lenders of safes, exchange institutions, life insurers and life insurance brokers, investment companies and investment firms, payment service providers and electronic money institutions (EMIs), trust offices, chartered accounting consultants, lawyers, notaries, estate agents, casinos, payment service agents, domicile providers, tax advisors, legal services providers, administrative firms, credit card companies, and estate valuers.
If you have to comply with one of these laws but do not have sufficient capacity to perform the verification process yourself, we offer you the perfect solution. CDD On Demand is intended for all institutions that want a simple, quick, efficient and cheap way to verify persons in order to comply with the Wwft and the Sanctions Act, without entering into a contract and without installing software. All you have to do is purchase a number of credits to work with the service.
SCOPE CDD On Demand has been developed for companies or institutions that have to comply with the legal CDD obligations with regard to the Money Laundering and Terrorist Financing (Prevention) Act and the Sanctions Act.
Better be safe than sorrry!