Financial Crimes Enforcement Network (FinCEN)
Customer due diligence (CDD) requirements are intended to limit financial crime by severely impair criminals’ ability to exploit the anonymity provided by the of use legal entities.
Key Facts
According to FinCEN, there are four aspects of CDD which belong in the anti-money laundering (AML) program for financial institutions. Effective as of July 2016, they cover the following:
- Customer identification and verification;
- Beneficial ownership identification and verification;
- Deep understanding of customer relationships to be built into a comprehensive customer risk profile;
- Ongoing monitoring and subsequent reporting of suspicious transactions and maintenance of recent and accurate customer information.
Additional Information
CDD Requirements
Who it affects
Companies providing financial services in the United States.