dido:public:ra:xapend:xapend.a_glossary:c:cdd
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dido:public:ra:xapend:xapend.a_glossary:c:cdd [2022/03/31 17:56] nick created |
dido:public:ra:xapend:xapend.a_glossary:c:cdd [2022/03/31 17:58] (current) nick |
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| **Customer Due Diligence** is integral to the KYC process, for example by ensuring the information a potential customer provides is accurate and legitimate. But it is also a constant process, extending to customers old and new, and their transactions. | **Customer Due Diligence** is integral to the KYC process, for example by ensuring the information a potential customer provides is accurate and legitimate. But it is also a constant process, extending to customers old and new, and their transactions. | ||
| - | Customer due diligence requires ongoing assessment of the risk of money laundering posed by each client and the use of that risk-based approach to conduct closer due diligence for those identified as higher non-compliance risks. That includes identifying customers as they are added to sanctions and other AML lists. | + | Customer due diligence requires ongoing assessment of the risk of money laundering posed by each client and the use of that risk-based approach to conduct closer due diligence for those identified as higher non-compliance risks. That includes identifying customers as they are added to sanctions and other [[dido:public:ra:xapend:xapend.a_glossary:a:aml]] lists. |
| According to the U.S. Treasury's Financial Crimes Enforcement Network, the four core requirements of customer due diligence in the U.S. are: | According to the U.S. Treasury's Financial Crimes Enforcement Network, the four core requirements of customer due diligence in the U.S. are: | ||
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| Customer due diligence seeks to detect money laundering strategies including layering and structuring, also known as \\"smurfing"\\—the breaking up of large money laundering transactions into smaller ones to evade reporting limits and avoid scrutiny. | Customer due diligence seeks to detect money laundering strategies including layering and structuring, also known as \\"smurfing"\\—the breaking up of large money laundering transactions into smaller ones to evade reporting limits and avoid scrutiny. | ||
| - | One rule in place to foil layering is the AML holding period, which requires deposits to remain in an account for a minimum of five trading days before they can be transferred elsewhere. | + | One rule in place to foil layering is the [[dido:public:ra:xapend:xapend.a_glossary:a:aml]] holding period, which requires deposits to remain in an account for a minimum of five trading days before they can be transferred elsewhere. |
| Source: [[https://www.investopedia.com/terms/a/aml.asp ]] | Source: [[https://www.investopedia.com/terms/a/aml.asp ]] | ||
dido/public/ra/xapend/xapend.a_glossary/c/cdd.1648763811.txt.gz · Last modified: 2022/03/31 17:56 by nick
