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Rigorous Know Your Customer and Customer Due Diligence arrangements help to protect a firm's reputation and the integrity of the financial system by reducing the likelihood of regulated firms becoming a vehicle for, or a victim of, financial crime and suffering consequential reputational damage. Inadequacy of KYC and CDD standards can expose a firm to serious business operation and control risks.
The Financial Action Task Force (FATF) recommends basic CDD measures as follows:
Source: The FATF Recommendations
A customer risk assessment is carried out before a firm establishes a business relationship with a customer followed by Customer Due Diligence. The risk assessment evaluates the extent to which that customer exposes it to a range of risks including involvement in money laundering and a risk rating is assigned to that customer. Information required includes:
CDD will be conducted to obtain / verify the information required, appropriate to the risk rating ie Simplified CDD or Enhanced CDD.
For full details of CDD requirements as per the Dubai Financial Services Authority’s Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module can be found here.
Useful websites include:
If you need Anti-Money Laundering training or require AML manuals please contact us by email at email@example.com or telephone +971 4 386 6360.