The process of conducting CDD typically involves the following steps:
Data Collection: Gather necessary information from the customer, such as identification documents, financial statements, and proof of address. Data Verification: Verify the collected information through reliable and independent sources. This may involve checking government databases or using third-party verification services. Risk Assessment: Analyze the collected and verified data to assess the customer’s risk level. This may involve evaluating factors such as the customer's transaction history, geographical location, and business activities. Ongoing Monitoring: Regularly monitor the customer’s transactions and activities for any suspicious behavior. This involves using automated systems and manual reviews to detect any red flags. Reporting: If any suspicious activity is detected, report it to the relevant regulatory authorities in accordance with legal requirements.