Compliance Consultancy
Consultancy and management firm

Customer Due Diligence

Compliance Consultancy Financial Crime Customer Due Diligence

The Customer Due Diligence (hereafter “CDD”) investigation is required by EU jurisdictions for the prevention of the use of the EU financial system for the purposes of money laundering and terrorist financing.

Based on the Chapter II of the EU Directive 2015/849
“Member States shall prohibit their credit institutions and financial institutions from keeping anonymous accounts or anonymous passbooks. Member States shall, in any event, require that (…) passbooks be subject to CDD measures as soon as possible and in any event(...)”.


What do Customer Due Diligence measures consist of ?


  • identification and verification of the customer (and the representative of the customer, if any) through his ID, passport or other reliable documentation.
  • identification and verification of the beneficial owner of the customer, in order to be clear who has the control of the entity.
  • gathering of information regarding the nature of the business relationship.
  • continuous monitoring of the transactions of the business relationship in order to reassure that the existing information is up-to-date.

The EU legal framework refers to two types of CDD: the Standard CDD and the Enhanced CDD.


The new Directive 2018/843, has made it clear that Enhanced CDD is required regarding transactions involving high-risk third countries. The business relationship should be continually monitored for trigger events which may imply special requirements for further CDD investigation in the future.

Aside from the elevated risk of financial system abuse by criminals, non-compliance with CDD is a danger that is to be taken seriously by financial institutions considering the large administrative and criminal sanctions and measures in force. Be sure that your business is compliant with its CDD obligations whenever it is involved in a transaction or business relationship that requires so.


Was this service page helpful ?  
Anti Fraud - Compliance Consultancy
Anti Fraud

Fraud is one of the most damaging risks your business can faceWe are in a persistent ...

Common Reporting Standard - Compliance Consultancy
Common Reporting Standard

Where Common Reporting Standard (CRS) idea comes from ?The concept of agreeing to a u...

Customer Due Diligence - Compliance Consultancy
Customer Due Diligence

The Customer Due Diligence (hereafter “CDD”) investigation is required by EU juri...

Cybersecurity - Compliance Consultancy
Cybersecurity

Faced with the outcrop of highly targeted attacks and a highly regulated environment,...

Terrorist Financing - Compliance Consultancy
Terrorist Financing

Financing of terrorism is defined as the distribution or collection of funds, in any ...

Know Your Customer - Compliance Consultancy
Know Your Customer

Financial institutions must be able to identify and verify the identity of their cus...

Insider Dealing - Compliance Consultancy
Insider Dealing

Insider dealing (the term "insider trading" is also frequently used) arises w...

MiFID MiFIR - Compliance Consultancy
MiFID MiFIR

The Directive 2014/65/EU (hereafter the "Directive") on markets in financia...

Anti Money Laundering - Compliance Consultancy
Anti Money Laundering

Anti-Money Laundering (hereafter "AML") regulation compliance is a challenge ...

Payment Service Directive 2 - Compliance Consultancy
Payment Service Directive 2

The idea behind the Payment Service Directives (PSD) aims to simplify the life of the...

Anti Bribery and Corruption - Compliance Consultancy
Anti Bribery and Corruption

Fighting against dumping and bribery is required for a company. Suspicions of corrup...

Sanctions and Embargoes - Compliance Consultancy
Sanctions and Embargoes

Due to globalisation, companies are increasingly exposed to the risk of sanctions, op...

Screening - Compliance Consultancy
Screening

Are you familiar with the term "screening" or are you wondering what does it ...

Market Abuse - Compliance Consultancy
Market Abuse

Market Abuse is a concept that encompasses unlawful behaviour in the financial market...

Politically Exposed Persons - Compliance Consultancy
Politically Exposed Persons

The concept of Politically Exposed Person (PEP) is essential to understand by your fi...

FATCA - Compliance Consultancy
FATCA

Do you know FATCA?Foreign Account Tax Compliance Act ("FATCA") was enacted in...

Get in touch with us - Compliance Consultancy
Get in touch !

We'll present you the technology to stop money laundering and terrorist financing

Europol defines the Financial Crime as the "illegal acts committed by an individual or a group of individuals to obtain a financial or profession...

Return to financial crime
Discover Pideeco Compliance Services and Business solutions for your operational business needs
Domain Experts
Vasiliki Karamousali - Pideeco Network Partner
Vasiliki Karamousali
Senior Consultant
Discover
Piet De Vreese - Pideeco Network Partner
Piet De Vreese
Managing Director
Discover
Pavel Matejka - Pideeco Network Partner
Pavel Matejka
Senior Consultant
Discover
Anastasia Bidjocka - Pideeco Network Partner
Anastasia Bidjocka
Junior Consultant
Discover
Financial institutions against money laundering | AML
Anastasia Bidjocka

In recent years, the banking sector in the European Union has been shaken by different scandals related to money laundering. On July 24th, 2019, the European Commission published reports including one on the assessment of recent alleged money laundering cases involving...

Read more Author What else ?
Financial institutions against money laundering | AML - Pideeco Journal