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Customer due diligence

Helpsheets and support

Published: 02 Feb 2021 Update History

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.

Guidance on Customer Due Diligence on Law firms/solicitors

Firms ask us about the level of due diligence required for UK law firms and whether ID is required for individual solicitors. This guidance is designed to supplement the requirements within the AML Guidance for the Accountancy Sector.

AML Guidance for the accountancy sector (AMLGAS)

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:

CDD – guidance and resources

CCAB: Client Due Diligence Case Studies

Following research commissioned by CCAB in September 2020 into accountant’s perceptions of anti-money laundering regulation and know your client checks, the CCAB has published the following case studies. They aim to assist the profession in keeping its knowledge of this vitally important topic up to date.

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:

  • Customer 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
  • Q&A

Money laundering risk assessments webinar

Our panel of speakers including MLROs, AML professionals and the ICAEW supervisory team, discussed how to perform a money laundering risk assessment and when to revisit it in this  on demand webinar.

Discussion topics included:

  • What should you consider as part of your risk assessment?
  • What will your AML supervisor expect to see?
  • Example of a risk assessment
  • Case studies and a live Q&A

How to verify your client webinar 

The team use case studies to demonstrate the stages of client verification and how these should link to your AML risk assessment.

Reporting discrepancies in the People with Significant Control Register 

Anti-money laundering customer due diligence (CDD)

Technical helpsheet issued to help members with some of the more common questions on customer due diligence around to prevent money laundering.

Electronic customer due diligence

Technical helpsheet which aims to help ICAEW members carry out electronic customer due diligence.

Video: 'Help is at hand to know your client better'

Using open source research for CDD – this short video explains how you can use online resources to perform research on clients for CDD.

Assessing your electronic identification software

A guide to how businesses should assess for themselves whether the information mined from these databases is sufficiently reliable, comprehensive and accurate.

Anti-money laundering: knowing a client’s source of wealth

Understanding their source of wealth can be a key component of customer due diligence for certain high-risk clients. Sophie Wales, Director, Technical Strategy, Tax, Ethics & Law Group, explains what is involved.

Don’t risk it! Use our client screening service

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).

Using new technology for AML compliance

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 customer due diligence (CDD).