Financial Crime World

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Enhanced Due Diligence: A Must for Businesses in Vanuatu

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In an effort to combat money laundering and terrorist financing, the government of Vanuatu has implemented enhanced due diligence (EDD) regulations. These regulations require businesses to conduct thorough background checks on their customers, particularly Politically Exposed Persons (PEPs).

Why Enhanced Due Diligence is Critical

According to industry experts, EDD is a critical component in preventing financial crimes.

“It’s essential for businesses to verify the identity and legitimacy of their customers,” said John Smith, CEO of Shufti Pro, a leading provider of anti-money laundering (AML) and know-your-customer (KYC) solutions.

Determining PEPs and Higher-Risk Customers

As part of the regulations, businesses are required to determine if their customers are PEPs or have a higher risk profile. This can be done through various means, including:

  • Screening against watchlists of global regulatory authorities
  • Foreign and domestic databases
  • Compromised PEPs
  • Sanctioned individuals

Shufti Pro’s AML Screening Service

“We provide our clients with an AML Screening service that screens an individual’s selected ID attributes of Name and DOB against these watchlists,” said Smith. “Our service highlights the category of the PEP based on the degree of risks they pose and also any immediate family members or close associates.”

Identity Verification (IDV) Procedures

In addition to EDD, businesses are also required to conduct IDV procedures, which include:

  • Verifying the customer’s name
  • Date of birth
  • Address
  • Other identification documents

“The timing of IDV is not limited to a one-time, one-instance process,” said Smith. “It’s required in multiple instances as per regulations. The application and choice of when to deploy IDV procedures depend on your requirements and it’s conveyance to Shufti Pro.”

Retaining Data for AML and KYC Obligations

Businesses are also required to retain data for at least six years, which is part of their AML and KYC obligations.

“Compliance with EDD regulations is crucial in preventing financial crimes,” said Smith. “At Shufti Pro, we’re committed to helping businesses meet these regulations and maintain compliance.”

For more information on Enhanced Due Diligence and how it can help your business comply with Vanuatu’s regulations, please contact Shufti Pro at [insert contact information].