To protect your business and ensure that you are working with clients who are not involved in financial crime during the onboarding process, it is necessary to take appropriate precautions and measures. These includes performing the following checks before onboarding a client.
- Identity verification: Verify the client’s identity by checking government-issued identification and cross-referencing it with other forms of identification such as utility bills, or through a KYC process.
- Background checks: Research the client’s background to ensure they have a good credit history and no history of financial crime.
- Risk assessment: Assess the client’s risk level by considering factors such as the type of business they operate, the location of their operations, and any red flags that may indicate a higher risk of financial crime.
- Customer due diligence (CDD): Ensure to the extent possible that the client is not involved in criminal activity and that the funds used during a business relationship are not the proceeds of crime.
