This section provides guidance on customer due diligence (CDD), to enable firms to mitigate the AML risks they have identified in their risk-based approach.
The CCAB has published updated guidance for the introduction of MLR17. This guidance has not been approved by HM Treasury.
The guidance is addressed to all entities providing audit, accountancy, tax, insolvency or related services in the UK (including firms providing trust or company services) by way of business, irrespective of membership of a recognised professional body.
The CCAB also publishes a separate appendix for:
Webinar recording: customer due diligence
Members of ICAEW’s AML supervisory team are joined by AML professionals and MLROs to discuss how CDD operates in practice. Discussion topics include:
- Client Due Diligence. What is it?
- When do I need to undertake CDD?
- How do I assess risk and what are the red flags?
- Enhanced Due Diligence. When should I perform it and what does it entail?
- Simplified Due Diligence. When is it appropriate?
- What will my supervisor expect to see in terms of evidence?
- Includes case studies
Technical helpsheet issued to help members with some of the more common questions on client due diligence around to prevent money laundering.
Technical helpsheet which aims to help ICAEW members carry out electronic client due diligence.
Using open source research for CDD – this short video explains how you can use online resources to perform research on clients for CDD.
A guide to how businesses should assess for themselves whether the information mined from these databases is sufficiently reliable, comprehensive and accurate.
Understanding their source of wealth can be a key component of client due diligence for certain high-risk clients. Sophie Wales, Director, Technical Strategy, Tax, Ethics & Law Group, explains what is involved.
Find out when enhanced due diligence applies, what a PEP is and understanding source of wealth.
Whether in business or practice, you’ll often need to undertake customer due diligence and may need to know rather more than just identity. Use the free client screening service from the Library & Information Service to check if your customers have fallen foul of any regulatory bodies or sanctions lists, or if they are a Politically Exposed Person (PEP).
The FCA has shared a number of useful resources on how the financial services industry can use new technologies to support AML compliance, particularly in the area of client due diligence (CDD).
Please make use of the following resources to ensure you are up-to-date with the latest regulatory information and news: