Empower Your Sales Due Diligence in UAE with airSlate SignNow

How to create outlook signature

hello Financial crime Fighters the AML regulations provide for applying adequate customer due diligence when establishing a business relationship the financial institutions dnfbps and vasps must adopt the risk-based approach and apply the CDD measures depending on the nature of the business operations overall business risk the customer's risk profile Etc the video explores the three types of customer due diligence measures used to mitigate money laundering and terrorism financing risks we also uncover the circumstances when you must use each CDD type the measures to be applied including the nature of ongoing customer monitoring let's look at each one in detail when the mlft risk posed by a particular customer or business relationship is classified as low the regulated entities can apply the simplified due diligence measures as part of the simplified due diligence The Entity may take a liberal approach toward customer identification and verification in the case of low-risk customers the company must identify the customer including their ultimate beneficial owners and verify the same against the valid identity documents even in sdd customer screening is mandatory in the case of low-risk customers when the sdd process is adopted the company can opt for Less frequent monitoring of the customer information and transactions one of the examples for a low-risk customer would be a company listed on the stock exchange which is already subject to stringent transparency and disclosure requirements provided the other information is clear standard due diligence is one step ahead of simplified due diligence standard due diligence is applied when the customer's Financial crime risk is identified as medium or in the case of low-risk customers when the outcome of the simplified due diligence is not satisfactory in standard due diligence the regulated entities must apply the same procedures as simplified due diligence for customer identification and verification the standard due diligence also calls for obtaining more information such as the customer's address of residence business Etc and verifying it against the valid address proof further information about the nature of the customer's activities must be sought in the case of an individual customer their occupation and employment details should be obtained the regulated entity must try to understand the transaction's purpose and the nature of the business relationship regarding ongoing monitoring the regulated entity should adopt regular monitoring to ensure no risks occur later in the business relationship here the frequency can be moderate not too less or not too high when the outcome of the customer risk assessment classifies the customer as high risk posing increased money laundering or terrorism financing risks to the business then the company must Implement enhanced due diligence measures in the case of EDD some additional checks and stringent measures are to be applied in addition to the measures adopted while performing standard due diligence here the regulated entity must obtain information about the customers and ubo source of funds and wealth including its verification against reliable sources to determine its legitimacy Senior Management must approve before engaging in a transaction or establishing a business relationship with such customers moreover the uaeaml laws mandate that regulated entities obtain the first payment from the customer's account with a bank subject to a similar CDD requirement when EDD is applied the business relationship and transactions should be subjected to frequent and rigorous monitoring examples of customers requiring enhanced due diligence measures a politically exposed persons and persons associated with them trust that this video has helped you understand the different types of customer due diligence measures and assist you in determining the adequate measures to be applied when dealing with customers posing different levels of financial crime risks don't forget to like share and subscribe to our Channel and hit the Bell icon so you never miss a video