Money laundering is a major concern for businesses of all sizes, and high-risk customers are a particular area of concern.
High-risk customers are those who are more likely to engage in illicit activities, such as money laundering or terrorism financing.
To protect your business from the risk of money laundering, it’s essential to have strong policies and procedures in place for identifying and managing high-risk customers.
Here are some steps you can take to protect your business when dealing with high-risk customers:
👉 Know your customer (#kyc):
Conduct thorough due diligence on all customers, including high-risk customers. Verify their identities and confirm their business activities, including the source of their funds.
👉 Risk assessment:
Conduct a risk assessment of all customers, including high-risk customers, to determine the level of risk they pose to your business.
👉 Enhanced due diligence (#edd):
Implement enhanced due diligence procedures for high-risk customers, such as conducting additional background checks or requiring more detailed documentation.
👉 Transaction Monitoring:
Monitor high-risk customers’ activities regularly for any suspicious or unusual behavior.
Have clear procedures in place for reporting any suspicious activities to the appropriate authorities.
By implementing these measures, you can significantly reduce the risk of money laundering in your business and protect your reputation and financial stability.
See below a list of high-risk customers.
What would you add to the list?