BSA Series: BSA Customer Due Diligence and Enhanced Due Diligence

The cornerstone of a strong BSA/AML compliance program is the adoption and implementation of comprehensive CDD policies, procedures, and processes for all customers, particularly those that present a higher risk for money laundering and terrorist financing. The objective of CDD should be to enable the bank to predict with relative certainty the types of transactions in which a customer is likely to engage. These processes assist the bank in determining when transactions are potentially suspicious. The concept of CDD begins with verifying the customer's identity and assessing the risks associated with that customer. Processes should also include enhanced CDD for higher-risk customers and ongoing due diligence of the customer base. 

Effective CDD policies, procedures, and processes provide the critical framework that enables the bank to comply with regulatory requirements and to report suspicious activity.  Learn how to manage an effective Customer Due Diligence Program.

Topics Covered:

  • Customer Due Diligence Guidance
  • Customer Risk
  • Developing questions and worksheets to understand the customer's business
  • Developing an Enhanced Due Diligence Program
  • Purpose of the account. 
  • Source of funds and wealth. 
  • Individuals with ownership or control over the account, such as beneficial owners, signatories, or guarantors. 
  • Occupation or type of business (of customer or other individuals with ownership or control over the account). 
  • Financial statements. 
  • Banking references. 
  • Domicile (where the business is organized). 
  • Proximity of the customer's residence, place of employment, or place of business to the bank. 
  • Description of the customer's primary trade area and whether international transactions are expected to be routine. 
  • Description of the business operations, the anticipated volume of currency and total sales, and a list of major customers and suppliers. 
  • Explanations for changes in account activity.

Who Should Attend?

BSA Officers, Coordinators, Compliance Officers, and Security Officers will benefit from attending this webinar.