1. Verify the customer's identity.
This includes confirming the customer's name, address, and other identifying information. You can do this by requesting documentation such as a driver's license or passport. You can also ask for proof of residency or business ownership.
2. Assess the customer's risk.
You need to assess the risks associated with doing business with each customer. This may include factors such as the customer's location, industry, and size. You may also want to consider any red flags that may indicate potential risks, such as a history of fraud or money laundering.
3. Understand the customer's business.
It is important to understand the nature of the customer's business in order to assess risk. This includes understanding what products or services the customer provides and how they conduct their business.
4. Obtain information about the customer's transactions.
In order to monitor your customers' activities and identify any potential risks, you need to obtain detailed information about their transactions. This includes information such as the amount, type, and timing of transactions.
5. Periodically review your customers' information.
You should periodically review your customers' information in order to ensure that it is still up-to-date and accurate. This may include reviewing documentation such as identification documents or transaction records.