A big component of a BSA/AML program is knowing your customers. The more you know about your customers and their typical activity, the more likely you will be able to detect when something seems suspicious or out of the ordinary. This is just as important on the lending side as it is on the deposit side. A couple of ways to help you do this include your Customer Identification Program (CIP) and Customer Due Diligence (CDD) procedures. CIP is the first step, and it helps you identify your customer. Are they who they say they are? CDD helps you understand your customer. What business are they in? What types of transactions are expected? While you might feel like you are being nosy, keep in mind that this information is essential for the prevention of money laundering, terrorist financing and other illicit financial crimes. That and the government requires you to do so.
Kevin explains more in the video.
Published
2024/03/15
