Know Your Customer (KYC)
KYC involves getting a client’s information before starting a business relationship. Service providers must make an effort to verify the suitability, and risks involved with maintaining a business relationship and to create a customer’s risk profile. The objective of KYC is to prevent service providers from being used for Money Laundering and Terrorism Financing.
Customer Due Diligence (CDD)
KYC leads to CDD in verifying the information given by clients. CDD is an ongoing process and control of unusual activities aimed at AML/CFT activities.
Enhanced Due Diligence (EDD)
Service providers shall perform EDD, if and when a business relationship or a transaction by its nature entails a higher risk of money laundering or terrorist financing. The enhanced customer due diligence shall be carried out both prior to the business relation or the transaction, as during the business relationship.
EDD is required where the client and/or Ultimate Beneficial Owner (UBO) and/or controlling person is considered to be a greater risk. This higher level of due diligence is required to mitigate the increased risk. The process is to gather additional information from clients with a high-risk rating.
The main difference between CDD and EDD lies in the processes they cover and the information gathered.
- Applicable legislation and regulations (legal requirements/CBA Handbook)
- Who is your client? UBO’s – Controlling person – Intermediaries/Representatives – Front man etc.
- When is CDD required? – The CDD process
- Know Your Customer – Purpose of relationship – Source of Funds/Source of Wealth – Nature of Business
- What is Enhanced Due Diligence? Know who you are dealing with
- When and how to conduct EDD?
- What type of information should be included in an EDD?
- How to deal with adverse media (negative news)
- (Ongoing) Customer Due Diligence?
- Trigger moments
- Exit of existing client: How and when?
- Money Laundering Compliance Officer / Money Laundering Reporting Officer
- Compliance department personnel
- Internal Auditors
- Risk Managers
- Other relevant staff involved with this topic
This course is designed to ensure that the knowledge acquired is valuable to manage money laundering efficiently and effectively within your organization. Additionally, participants will learn how EDD procedures can be used to minimize risk and maintain effective compliance standards e.g., when onboarding high-risk customers.
The regulator and AML auditors need to ensure that high risk customers are being thoroughly assessed and proper EDD reviews ensures this practice is taking place.
There are no requirements for participation.
Duration of the training
The duration of the training is 4 hours
AWG 445,- pp. (incl. taxes)
Costs includes: Training sheets and Certificate of participation.
Date: August 11, 2021
Time: 8:30 – 12:30
Location: This training will be held at the training center of Compliance Services Caribbean located at Caya Taratata 3-A, Unit 16 (Opposite RBC Bank Italiëstraat).