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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.