While verifying client identity and address is consistently done well, a significant concern remains regarding the most important part of due diligence: building a complete client profile to confidently assess AML/CFT risk.

Merely meeting ID and address standards doesn’t automatically result in a low-risk rating. Understanding your customer beyond these basics is vital. Researching them, perhaps starting with a simple Google search, lays the groundwork for a robust AML/CFT profile.

While there’s no single approach to this, Strategi offers various online modules designed to assist reporting entities in meeting their obligations, particularly regarding CDD under the AML/CFT Act 2009. Check out Strategi Institute’s online education portal, Radar, for these resources. Our suite of AML/CFT related courses is designed to help you and your team navigate the ever-evolving AML/CFT landscape. The soon to be published Strategi guidance note relating to the AML/CFT regulatory changes coming into effect on 1 June 2024 also provides suggestions on how to conduct more in-depth CDD to meet the new regulatory requirements.

Remember, true CDD goes beyond ticking boxes; it’s about creating a detailed profile for your client. Criminals are aware that providing ID and proof of address can often be enough to slip through the cracks. By truly knowing your client, you can better protect your business and uphold regulatory standards.

For more information about Radar, or if you have any questions, please reach out to the team.