CDD combines identity and beneficial-ownership checks with an understanding of the customer’s business, relationship purpose and risk profile.
Understanding Customer Due Diligence & KYC Review
When to consider this service
Compliance officers, financial institutions and transaction teams reviewing customer risk, foreign investment or financial-crime controls can use this service to clarify a particular issue. A useful starting question is: “How does CDD extend beyond checking identity documents?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Verify identity and ownership information.
- Assess expected activity and risk classification.
- Plan periodic updates and escalation controls.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- Identity documents.
- Corporate records.
- Beneficial-ownership information.
- Business profiles.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
Identity verification alone does not explain expected transactions or the full customer-risk assessment.
How the engagement works
- Define the question: verify identity and ownership information, using the available identity documents and the facts you provide.
- Examine the evidence: assess expected activity and risk classification. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: plan periodic updates and escalation controls. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for Customer Due Diligence & KYC Review sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of identity documents, corporate records, beneficial-ownership information and business profiles affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Official resources
Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.
Discuss your requirement
Share a short summary of your Customer Due Diligence & KYC Review requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about Customer Due Diligence & KYC Review.
How does CDD extend beyond checking identity documents?
Identity verification alone does not explain expected transactions or the full customer-risk assessment.
What records should I prepare for Customer Due Diligence & KYC Review?
What can the scope of Customer Due Diligence & KYC Review include?
How are fees and the schedule agreed?