In an increasingly global marketplace, organizations have to be cognizant of international regulations and the variations that exist between different parts of the world. Customer due diligence is the analysis of potential new customers in the context of regulatory compliance and legal issues including anti money laundering. Because regulations are not consistent in all parts of the world, organizations must ensure their customers comply with the highest global requirements, a need that will only intensify as more organizations expand internationally.
There are several domestic and global regulatory measures driving customer due diligence today, and organizations must be mindful of all of them. Here are a few of the more prominent examples:
- USA PATRIOT Act—Title 3
- The 4th EU AML Directive
- Financial Action Task Force (FATF) Recommendations and Membership
Ultimately, organizations must take note of laws that extend outside their borders if they wish to maintain their viability in a global economy. Keeping up with constantly changing regulations on both a domestic and international scale requires CDD solutions that can gather all relevant information and streamline the risk management and decision making process.
