Customer Due Diligence

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Abstract

Students will explore the importance of Customer Due Diligence (CDD) in identifying, mitigating, and preventing financial crimes and how it can be applied as a key control to comply with regulatory requirements including monitoring and reporting of suspicious activity. Students will examine the notion of a risk-based approach and understand how to implement various CDD measures to mitigate and manage Money Laundering and Terrorist Financing (ML/TF) risk. The subject will also explore the concept of Enhanced Customer Due Diligence (ECDD) and the role it plays in detecting, disrupting ML/TF

Syllabus

The CDD regulatory landscape and fundamentals of a risk-based approachThe core components of CDD (Simplified, Ongoing, Enhanced Due Diligence)The implementation of risk based CDD policies, procedures, and processes to identify unusual transactions and behaviourMeeting regulatory expectations and enforcement relating to poor CDD practices

Learning outcomes

Upon successful completion of this subject, students should:

be able to examine the role of CDD as a risk-based compliance approach within a AML/CTF Program;

be able to apply CDD knowledge and skills to customer identification procedures; and

be able to analyse knowledge and skills relating Ongoing Customer Due Diligence (OCDD) and Enhanced Customer Due Diligence (ECDD)