client due diligende and client's identification

Hi Romes

Where have you read “client identification”?

Here’s what the Law Society in the Uk describe it as:

“Client identification and verification rules
As of December 31, 2008, Law Society Rules 3-91 to 3-102 require lawyers to follow client identification and verification procedures when retained by a client to provide legal services. A client identification and verification checklist is published on the Law Society website as part of the Practice Checklist Manual. You can use this checklist to help you apply the rules.
Read the rules carefully and pay close attention to the definitions in Rule 3-91. Terms such as “client”, “money”, “financial transaction”, interjurisdictional lawyer”, “organization”, “public authority” and “reporting issuer” may not be consistent with common usage. For example, “client” includes another party that a lawyer’s client represents or on whose behalf the client otherwise acts in relation to obtaining legal services from the lawyer. When a lawyer is acting for an organization, a lawyer has responsibilities to obtain information about the person instructing the lawyer on behalf of the organization.
Identification and verification are two distinct concepts in the rules. Identifying your client is easy; verifying your client’s identity requires more effort because a financial transaction is involved. Many exemptions to the rules exist. Understanding the difference between identification and verification and knowing the exemptions will save you time and work.
Lawyers must keep a record of the information and documents obtained to identify and verify a client’s identity. Lawyers must also retain a copy of every document used to verify the identity of any individual client or organizational client (including the instructing individual) when providing legal services in respect of a financial transaction.”

Client due diligence is a more commonly heard expression and relates to the work that an accountant will do as part of the services offered to a client asking about another entity. It’s most frequently associated with the work done to confirm the reliability of the financial statements. Also used when a “small” public company is seeking a stock exchange quotation or is about to issue a prospectus inviting the public to subscribe for shares in the company thereby providing additional finance for it to grow even faster

Does that do it for you?