KYC vs. CDD: Understanding the Key Differences for Your Business

You've likely heard of KYC (Know Your Customer) and CDD (Customer Due Diligence), but what exactly sets them apart?

Both KYC and CDD are mandatory legal requirements for businesses operating under Section 13 and section 16, including gold shops, diamond shops, gem shops, and similar establishments. Implementing these processes before any purchase or sale is crucial for preventing and managing the risk of money laundering and other illicit financial activities.

Unpacking KYC and CDD
KYC (Know Your Customer): The Foundation of Identification
KYC is the initial process of verifying the identity of your customers. It's about gathering fundamental information to confirm who you are doing business with.
Understanding the purpose of the business relationship.
The primary goal of KYC is to establish a clear picture of your customer's identity at the outset of the relationship.

CDD (Customer Due Diligence): The Ongoing Risk Assessment
CDD takes KYC a step further by involving a more in-depth and ongoing assessment of the customer's risk profile. It's not just about who your customer is, but what they do and how they conduct their transactions.

CDD is a continuous process designed to detect and mitigate potential money laundering or terrorist financing risks throughout the business relationship.

In essence, KYC is the initial step of identification, while CDD is the ongoing process of risk assessment and monitoring based on that initial identification. Both are critical for maintaining compliance and safeguarding your business.

CHECK+ provides a seamless solution for conducting your KYC and CDD processes, enabling you to meet legal obligations with ease:
> Convenient & Easy: Streamlined steps for efficient data collection and verification.
> Confident Data Verification: Rely on trusted authorities for accurate data validation.
> Guaranteed Legal Compliance: Ensure your business adheres to all relevant regulations, including reporting suspicious transactions.

Simplify Your Compliance with CHECK+
Email: sales@fyn.com
Line@: @checkplus (click here https://lin.ee/x0s2xdg )
Tel: 02-219-5559 | 065-915-8222
FB: CheckPlusByFynnet