WHAT IS THE IMPORTANCE OF CUSTOMER DUE DILIGENCE?
Conducting customer due diligence is an essential step prior to onboarding, as it involves assessing the risk of each incoming customer by performing extensive background checks.
Ensuring Customer Legitimacy Through Due Diligence:
- To verify the identities and legitimacy of customers, Tasheel obtains a broad range of information such as full name, image identification card, address, telephone number, email id, occupation details, and Tax Identification Number.
- For the purpose of Customer Due Diligence (CDD), Tasheel demands businesses must supply additional data that reveals their business model, the origin of funds, and who ultimately benefits from it.
- At the customer level, identity, location, and business type are used to determine Risk Profiles/Risk Assessments which can be categorized into low, medium, or high levels of money laundering risk. The degree of due diligence required for each customer relies on their individual associated risk score - with higher-risk customers requiring a more thorough process than those deemed at lower risk.
- Continuous Supervision: After onboarding customers, customer due diligence does not simply end there. To ensure security and compliance with regulations, a continuous monitoring system must be put in place to scrutinize high-risk customers, any suspicious transactions or changes made on their profile, etc.
