BSA for Lenders: Customer Due Diligence

When it comes to BSA/AML compliance, there is a lot to understand and comply with. There’s your Customer Identification Program, Customer Due Diligence, Enhanced Customer Due Diligence, Beneficial Owners, and on and on. It can be easy to get things turned around and sometimes not know what requirement is what and/or what purpose it serves. While they might not always think so, lenders play a crucial role in BSA/AML compliance.

Kevin explains more in the video.

Video Highlights:

• CIP and customer due diligence are two distinct processes that loan officers must be aware of.
• CIP is the “who” while CDD is the “what, where, when, why, and how”
• Customer due diligence is the process by which banks develop a risk profile for customers to ensure their transactions and activities make sense.
• Customer due diligence is designed to monitor relationships over time and update risk profiles with new information as it arises.

Published
2023/02/28