Financial institutions are required to implement risk-based Customer Due Diligence (CDD) procedures and processes designed to understand the nature and purpose of customer relationships for the purpose of developing a customer risk profile and conducting ongoing monitoring to identify and report suspicious transactions. In other words, knowing your customer. This might include knowing what types of transactions do they engage in? Do they deal primarily in cash? Do they send a lot of wires and where? How often do they make deposits? Knowing about a customer’s usual activity can help trigger you to identify suspicious activity that doesn’t seem to fit their typical patterns.
Kevin explains more in the video.
Published
2025/06/13