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Enhanced Due Diligence Procedures Implemented in Heard Island and McDonald Islands
Strengthening Financial Security in the Region
In a move to prevent money laundering, fraud, and other illicit activities, the authorities of Heard Island and McDonald Islands have announced the implementation of Enhanced Due Diligence (EDD) procedures for high-risk financial transactions. These new measures aim to strengthen financial security and promote transparency in the region.
EDD Checklist: What Financial Institutions Need to Know
To ensure compliance with the new regulations, financial institutions operating in Heard Island and McDonald Islands should follow these key steps:
1. Identify Customer Risks
- Use standardized criteria to review customer applications and transactions
- Flag risks using automation
- Review situations using a checklist representing standard operating procedures
- Automate the process for efficiency
2. Analyze Customer’s Source of Funds and Ultimate Beneficial Ownership (UBO)
- Collect official business documents from clients
- Compare with registries for accuracy
- Identify UBOs
- Perform KYC checks on each UBO
3. Ongoing Monitoring of Financial Transactions
- Monitor transactions periodically
- Confirm/update customer information as needed
4. Adverse Media and Negative Check
- Review news sources and social media to uncover known risks
- Verify accuracy using automated checks
5. In-Person Site Visit
- Conduct visual confirmation of identity or address
- Use remote tools such as AI-powered biometrics checks when necessary
6. Report on Findings and Develop Strategy for Ongoing Monitoring
- Create a report on findings
- Develop a strategy for ongoing monitoring procedures
Automating EDD Procedures: A Key to Efficiency
To streamline the EDD process, Heard Island and McDonald Islands financial institutions can leverage automation tools such as Incode’s AI-powered identity verification platform. This platform provides automated risk control checks, fraud risk databases, and transaction monitoring tools to help institutions perform enhanced due diligence more efficiently.
Request a Demo Now
Don’t miss out on the opportunity to enhance your financial security and efficiency in Heard Island and McDonald Islands. Request a demo of Incode’s AI-powered identity verification platform today and discover how you can automate your EDD procedures for faster service without sacrificing security.