Financial Crime World

Banks Take Steps to Prevent Financial Crime

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In a bid to prevent financial crime and maintain the integrity of the financial system, banks have implemented measures to detect and report suspicious transactions.

Customers Play a Key Role in This Effort

As part of their Customer Due Diligence (CDD) requirements, banks verify the identity and address of customers and obtain sufficient information about them. This is done at various stages throughout the banking relationship, including when opening an account, providing services to a customer, and periodically reviewing existing accounts.

Key Requirements of CDD

The two key requirements of CDD are:

  • Verifying the identity and address of customers through reliable and independent source documents.
  • Obtaining sufficient information about customers, including their source of funds and wealth, nature of activities, economic purpose of accounts, and expected volume and pattern of transactions.

When is CDD Necessary?

CDD is a continuous process that requires customers to keep their personal information updated and submit fresh documents or provide additional information as required by the bank’s internal policies. Customers need to fulfill CDD requirements when:

  • Opening an account
  • Becoming authorized signatories
  • Reactivating an existing account
  • Applying for a new credit facility
  • Conducting banking transactions
  • Becoming a Politically Exposed Person

Why is CDD Important for Customers?

By assisting in the CDD process, customers can help ensure that their relationship with the bank is properly maintained and reduce the risk of:

  • Identity theft
  • Money laundering
  • Unauthorized transactions

Consequences of Not Complying with CDD Requirements

Failure to comply with CDD requirements can result in the bank refusing to open an account or carry out transactions, terminating existing banking relationships, or making a suspicious transaction report to the Financial Intelligence Unit.

Banks and Customers Work Together to Fight Financial Crime

By cooperating with banks and fulfilling CDD requirements, customers can help protect themselves and others from financial crime. Banks also urge customers:

  • Never to reveal banking details or share their identity with third parties

Thank You for Being a CDD Compliant Customer

By working together, we can maintain the integrity of the financial system and prevent financial crime.