Correspondent banking: know your customer's customer

In 2018, the US Financial Crimes Enforcement Network (FinCEN) established the CDD Rule to clarify and strengthen customer due diligence requirements for US banks, mutual funds, brokers or dealers in securities, futures commission merchants, and introducing brokers in commodities.

Customer due diligence is generally mandated and enforced by regulatory bodies. Know your customer (KYC) is a critical component of the due diligence process; know your customer’s customer (KYCC) goes further. As part of KYCC, financial institutions must identify, verify, and investigate their customer’s customer.

Key highlights of the whitepaper include:

• How the right data is key to run a successful KYC and KYCC programs
• The emerging money laundering typologies and red flags
• New technologies and best practice in AML and CFT