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| What is Money Laundering ? - Topic 4 :Customer Due Dilligence | |||
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Customer Due Dilligence
Importance of Identity Verification : The first chance a Financial institution has to protect itself from fraudulent transactions is when a new Customer establishes a relashionship, typically opening an account. That’s why it is important to verify the identity of a new Customer.
On of the best way is to require the Customer to provide proper identification and have the Customer to fill out an application. Thèse two pièces of information are invaluable to the institution., thus they should be handled with care. In some countries, it is customary to have a copy of every customer’s identification that was presented at account oppening. Once the relashionship goes beyond the initial account opening, the Financial institution should try and become familiar with its customer’s typically business process, and be sure to look for red flags of money laundering.
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