Navigating Bank Secrecy Act compliance: Keys to a strong customer identification program | Plaid

What you'll learn

• AML regulations require financial institutions to apply a risk-based approach. [27:00] Grasp the inherent risks associated with each of your products, services, geographies, and customers. Determine how risk is defined for each and every one of these. Then consider how to use your controls to mitigate your risk.
• AML relies on several processes to verify identity and reduce fraud. [30:00] These include: customer identification program (CIP), customer due diligence (CDD), enhanced due diligence (EDD), and ongoing due diligence (DD). Companies use different processes for each customer, depending on their source, use of funds, transaction activity, and level of risk.Â
• Identity verification processes are the front door for getting to know your customers. [52:30] Verification processes are a necessary building block for a strong customer management process. They help comply with financial regulations, prevent fraud, and increase user trust and safety.
• Any customer-facing digital business can benefit from a risk-based approach to customer management. [52:30] That includes lots of industries beyond financial services including real estate technology, online retailers, marketplaces, and social media platforms.Â

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