Anti-Money Laundering (AML) policies are essential in the financial services industry for safeguarding integrity of the global financial system. As part of these requirements, subject persons are obliged to undergo Due Diligence (DD) on their clients in order to identify and decrease the risk of money laundering and terrorism financing. The purpose of due diligence is for subject persons to understand who their clients are, the character of their company or financial operations, and the amount of risk they pose.

Simplified Due Diligence is one of the simplest types of Due Diligence and is applied when the consumer is thought to be low-risk. Individual consumers, low-value accounts, and customers with a long association with the subject person may all be included. Simplified Due Diligence suggests that the consumer is subjected to fewer checks, and the subject person may depend on previously acquired data, such as information received during the opening of an account.

The most common form of Due Diligence is Customer Due Diligence, which is conducted on all clients who are not considered low-risk. Customer Due Diligence requires acquiring information about the client, such as their name, where they live, and profession as well as confirming it with reliable sources, such as government-issued identification documents. By understanding the character of the customer’s company or their financial activities, the subject person must also evaluate the risk profile of the client.

Enhanced Due Diligence is the most thorough form of Due Diligence and is focused solely on high-risk consumers. This group may include clients who are politically exposed, have a criminal record, or do business in high-risk areas. Enhanced Due Diligence incorporates carrying out more due diligence on the client, including determining where their wealth comes from and what kind of business they are running.

At Chevron Group we can help your company to design and implement an effective Customer Due Diligence process. We provide services for identification and verification – all compliant with AML regulations.

If you want to know more get in contact with our experts via info@chevron.group