1. Relevant background checks
Verify the relevant and up-to-date information about the customer including their identity, address, contact details, financials, and any other important data points.
2. Compliance checks
Ensure that the customer complies with all applicable laws and regulations such as Anti Money Laundering (AML) or Know Your Customer (KYC).
3. Credit history check
Check for any recent bankruptcies or liens against the customer to assess their ability to pay for goods or services purchased from your business.
4. Transaction monitoring
Monitor transactions regularly for suspicious activity and keep a record of all payments made by customers so you can better track who is buying what products/services from your business.
5. Know Your Customer (KYC) guidelines
KYC guidelines are used to ensure that a business knows the identity of its customers, as well as any associated risks. The goal of these guidelines is to ensure that all customers are legitimate and that the business has a sufficient understanding of the customer’s background before entering into any business relationships.
6. Fraud and identity checks
These checks can include obtaining information related to a customer’s address, date of birth, credit history, criminal records, and other relevant data. Companies should take steps to ensure that customers are who they claim to be and that they are not engaged in any illegal activity.
7. Verification of customer information
Verification of customer information involves verifying the accuracy and authenticity of a customer's identifying documents, such as passports, driver’s licenses, or other government-issued identification. This should include checking for falsified or altered documents, as well as making sure that the customer has not provided any false or incorrect information when completing the due diligence process.
8. Assessment of political ties
An assessment of political ties is important for businesses, as it can help them to identify any potential risks associated with a customer or supplier. This should involve examining the customer’s political history, as well as any organizations and individuals associated with them.
9. Confirmation of government licenses/permits required
IA business needs to confirm whether the customer or supplier holds any government-issued licenses or permits that are required for conducting business. This includes verifying the validity of any licenses and permits, as well as making sure that all requirements for obtaining such documents have been met.
10. Screening of sanctions lists
Screening of sanctions lists involves checking to see if the customer or supplier is listed on any government-issued or international sanctions list. This is important to ensure that the customer or supplier is not affiliated with any organizations or individuals subject to economic sanctions.
11. Integrity checks on third-party vendors, agents, or intermediaries
Integrity checks on third-party vendors, agents, or intermediaries should involve examining the background of any individuals or companies who may be involved in a transaction. This should include obtaining information related to past business dealings and transactions, as well as conducting due diligence on any affiliations with other parties.
12. Internal reviews to explore any potential conflicts of interest
Internal reviews should be conducted to identify any potential conflicts of interest that may exist between the customer or supplier, and any other parties involved in the transaction. This should include assessing the financial and business relationships between these parties, as well as examining any potential personal connections.