CDD is a process of collecting relevant information about the existing or new customer and then evaluating it for possible risks under the Money Laundering or Terrorist Financing Act. In recent years, this process has become increasingly important because practices such as money laundering, fraud and terrorism are things we unfortunately still have to deal with. Financial institutions are under a magnifying glass with the regulator. To ensure that this process (investigation) is carried out correctly, hire a CDD analyst.
The CDD analyst
A CDD analyst ensures that all necessary checks are performed so that you do not run unnecessary risks. Failure to perform these checks puts you at risk of hefty fines. As well as reputational damage. Tackling money laundering and terrorist financing are also high on the political agenda these days (Wwft). It is therefore advisable to invest in people and/or systems that can carry this out for you.
Looking for traces that may lead to a financial-economic crime
The CDD analyst acts as a detective who looks for traces that may lead to financial-economic crime. A sound "Customer Due Diligence" policy helps keep your institution better protected from unnecessary risks. This involves conducting thorough customer due diligence. The European Anti-Money Laundering Directive (AWR) and national implementations thereof, such as the Dutch Wwft, require certain organizations to conduct customer due diligence/CDD. Organizations subject to this obligation must comply with CDD requirements when entering into a business relationship. Analysts must assess the extent to which a customer exposes the organization to risk. These risks include money laundering and terrorist financing. On the one hand, it comes down to studying supplied files: analysis, judgment, and reporting. But on the other hand, there is also regular coordination with the client manager or directly with the client to gain more insight into specific activities or transactions.
SCOPE FinTech Solutions has developed CDD solutions for all types of clients who need to comply with the Wwft. To learn more about the solutions and why it can save money, time and unnecessary exposure to risk: