CDD is a process during which relevant information about the existing or new customer is collected and then assessed for possible risks within the framework of the Money Laundering and Terrorist Financing (Prevention) Act (Dutch Wwft). In the past few years, this process has become ever more important because, unfortunately, we still have to deal with practices such as money laundering, fraud, and terrorism. Financial institutions are closely scrutinised by the supervisory authority. To ensure that this process (investigation) is correctly implemented, you engage a CDD analyst.
A CDD analyst ensures that all required checks are made to prevent you from running unnecessary risks. If you omit to do these checks, you run the risk of hefty fines and reputational damage, as tackling money laundering and terrorist financing are high on the political agenda nowadays (Wwft). This is why it is advisable to invest in people and/or systems that can do this for you.
Also read: What is Customer Due Diligence (CDD)?
Clues that may lead to financial and economic crime
The CDD analyst works like a detective who is looking for clues that may lead to financial and economic crime. A thorough ‘Customer Due Diligence’ policy helps you protect your business better from unnecessary risks. To do so, it is important to conduct a thorough investigation into your customers. The European Money Laundering Directive (Dutch AWR) and its national implementations, such as the Dutch Wwft, oblige some organisations to perform a customer due diligence (CDD). The organisations which this obligation applies to have to meet the CDD requirements if they enter into a business relationship. The analysts have to assess to what extent a customer exposes the organisation to risks. Among others, these risks are money laundering and terrorist financing. On the one hand, this entails studying the files that have been made available: analysis, opinion forming, and reporting. On the other hand, however, there is also regular coordination with the person in charge of customer relations or directly with the customer to gain better insight into specific activities or transactions.
A perfect system that helps you implement the necessary checks is the SCOPE CDD Cloud Solution. To know more about this system and why it can save time and money and help you avoid unnecessary risk exposure, click here.