Customer Verification

Customer Due Diligence (CDD) is at the heart of the Money Laundering Regulations. Whereas CDD has many elements, it is identifying and verifying the customer’s identity on the basis of documents, data or information obtained from a reliable and independent source, according to the risk assessed, which is the key. Do you know your customer?

It is also identifying and verifying any ‘beneficial owner’. This means any individual who ultimately owns or controls, whether direct or indirect ownership or control more than 25% of the shares or voting rights in a company, or more than a 25% share of the capital or profits of a partnership. It also extends to ‘shadow’ directors or partners, those who exercise control over then management.

The burden of responsibility has now extended to the fields of financial crime, bribery or corruption with the introduction of the Bribery Act 2010. This brings more firms and businesses into the regime of risk and verification.

For company’s this may mean obtaining copies of incorporation documents, annual returns and details of any recent changes. For an individual this may be a simple verification search.

Both sets of Regulations have the added complexity of Politically Exposed Persons (PEP’s) and sanctions; our businesses must have policies and procedures to determine whether this applies to our customers, whether they are firms or individuals.

BTC Corporate and Compliance has a range of search options available to help you fulfil your obligations. We have a range of company searches, both UK and international, individual verification reports and worldwide PEP and Sanctions reports.