What is customer due diligence?
Customer due diligence is the term used in the Regulations for the steps that businesses must take to: • Identify the customer and verify their identity using documents, data or information obtained from a reliable and independent source. • Identify any beneficial owner who is not the customer. This is the individual (or individuals) behind the customer who ultimately own or control the customer or on whose behalf a transaction or activity is being conducted. • Where a business relationship is established, you will need to understand the purpose and intended nature of the relationship, for example details of customer’s business or the source of the funds. You must also conduct ongoing monitoring to identify large, unusual or suspicious transactions.
