Customer due diligence
Customer due diligence gathers and assesses information about a client and relevant beneficial owners, the purpose of the relationship and associated risks. It is performed and updated under applicable anti-money-laundering requirements and the firm’s risk-based procedures.
Worked example
Before accepting a new client, a firm verifies the ownership chain and investigates why the engagement involves a high-risk jurisdiction.
Common mistake
Obtaining an identity document once does not automatically satisfy continuing monitoring or enhanced due diligence requirements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |