Interagency statement reiterates due diligence expectations

the risk-based approach to assessing customer relationships and conducting customer due diligence

no customer type presents a single level of uniform risk or a particular risk profile related to money laundering, terrorist financing, or other illicit financial activity

The agencies continue to encourage banks to manage customer relationships and mitigate risks based on customer relationships

the agencies recognize that banks choose whether to enter into or maintain business relationships based on their business objectives and other relevant factors

When developing a risk-based approach to CDD, banks should adopt procedures that enable them to understand the nature and purpose of customer relationships

Know Your Customer protocols are just one facet of AML.

international KYC mandates are not in place just to be a headache for financial institutions. Rather, they are meant to protect a healthy economy where businesses can make money without worrying about financing crime and terrorism

a company that has a watertight KYC process, including pre-KYC checks, will very likely have low losses to fraud as well, and be a positive contributor to a safe financial ecosystem.