KYC Compliance

iMask Intelligence assists clients in complying with the Financial Crime Information Network Customer Due Diligence Rule (CDD). CDD is a critical element of effectively managing risks and protecting against criminals, terrorists, and Politically Exposed Persons (PEP’s) who might present a risk. The CDD Rule, which amends Bank Secrecy Act regulations, aims to improve financial transparency and prevent criminals and terrorists from misusing companies to disguise their illicit activities and launder their ill- gotten gains.

The CDD Rule clarifies and strengthens customer due diligence requirements for U.S. banks, mutual funds, brokers or dealers in securities, futures commission merchants, and introducing brokers in commodities. The CDD Rule requires these covered financial institutions to identify and verify the identity of the natural persons (known as beneficial owners) of legal entity customers who own, control, and profit from companies when those companies open accounts.

The CDD Rule has four core requirements. It requires covered financial institutions to establish and maintain written policies and procedures that are reasonably designed to:

• Identify and verify the identity of customers

• Identify and verify the identity of the beneficial owners of companies opening accounts

• Understand the nature and purpose of customer relationships to develop customer risk profiles

• Conduct ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information