Financial Crime World

Enhanced Due Diligence: A Crucial Step in Business Relationships

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In today’s fast-paced and complex business landscape, ensuring the integrity of potential partnerships is more crucial than ever. Enhanced Due Diligence (EDD) is a process that takes due diligence to the next level by conducting thorough research on individuals or entities before establishing a relationship with them.

Politically Exposed Persons: A Special Case

As part of EDD, businesses are required to identify Politically Exposed Persons (PEPs), which include government officials, politicians, and their family members. PEPs are considered high-risk individuals due to their potential involvement in corruption and money laundering schemes.

Key Features:

  • Identification of PEPs through global regulatory authority watchlists
  • Screening against foreign and domestic databases, compromised PEPs, and sanctioned individuals
  • Specialized AML Screening service by Shufti Pro

Timing is Everything

Identity Verification is not a one-time event, but rather an ongoing process. It’s crucial to verify identities at multiple instances, including when onboarding new customers and during transactions.

Key Benefits:

  • Compliance with regulatory requirements
  • Protection from financial crime
  • Ongoing Identity Verification service by Shufti Pro

Reliance on External Services

Vanuatuan regulations allow businesses to seek the services of third-party providers for due diligence measures. However, it’s essential to remember that ultimate responsibility lies with the business itself to maintain compliance and fulfill AML/KYC obligations.

Record Retention: A Must

As part of their AML/KYC obligations, businesses are required to retain data for at least six years. This includes collecting necessary information from third-party providers without undue delay.

Key Takeaways:

  • Data retention is crucial for compliance with regulatory requirements
  • Shufti Pro’s services can help streamline the record retention process

In today’s fast-paced and complex business landscape, Enhanced Due Diligence is a crucial step in establishing trusted relationships with customers and partners. By conducting thorough research and verification, businesses can mitigate risks and ensure compliance with regulatory requirements.