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Good day Mike
Can you help me determine the difference between Client Identification and Client’s Due Diligence and when these are Used?
Appreciate your help here.
Romes
Romes im also taking P7 this december so dont rely entirely on this answer but i believe that client due diligence is part of client identification procedures.
Client due diligence are procedures to verify the identities of all your clients (by obtaining information such as their id, their utility bills to confirm their address etc ) their company or line of business (check if they have certificate of incorporation, list of their main shareholders). All these records have to be maintained for 5 years for evidence if needed.
They are used for instances such as with money laundering. Accountants are required to check whether their clients are who they claim to be.
I would also like Mike to check on that.
Romes you should post your answer on Ask ACCA TUROR. Mike will be able to help you there for a full answer. When you click the ACCA button instead of going to acca forums go to ask acca tutor. post your question there on P7
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