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Common Customer Due Diligence Questions
Q: Do we need to keep ID documents for every buyer/purchaser? A: You need to keep the outcomes of verification of identity (VOI), but not necessarily the actual ID documents unless the client is assessed as higher risk. easyAML securely stores verification outcomes and documents with appropriate access controls.
Q: Does PEXA's verification of identity meet AML requirements? A: PEXA's VOI is a good start, but AML requirements go beyond basic identity verification. You also need to check against money laundering/terrorism watchlists and Politically Exposed Persons (PEP) lists. easyAML integrates these additional checks into a single workflow.
Q: What is the difference between VOI and KYC? A: VOI (Verification of Identity) confirms someone's identity. KYC (Know Your Customer) is broader - it includes VOI plus additional checks to confirm the person isn't on money laundering or terrorism watchlists or PEP lists. easyAML handles the complete KYC process.
Q: How often do checks need to be conducted on the same client? A: Generally every 2 years for repeat clients, or when there's a significant change in their circumstances or transaction patterns. You can reuse verification results within this timeframe. easyAML tracks verification dates and alerts you when checks need refreshing.
Q: For low-risk clients, is asking if they're a PEP sufficient, or must we check databases? A: You must check databases to demonstrate proper due diligence. Self-declaration alone is not likely to sufficient. easyAML automatically performs these database checks as part of the standard KYC process.
Q: When parents are helping children purchase property, what checks are needed? A: You need to conduct the same KYC/AML checks on anyone who is a party to the transaction or providing funds, including parents providing financial assistance. This means verifying their identity and conducting PEP/watchlist screening. easyAML allows you to add multiple parties to a transaction and complete all required checks efficiently.
Q: If a lender conducts credit checks, does that satisfy AML requirements? A: No. Credit checks serve a different purpose than AML checks. You still need to conduct your KYC validation including identity verification and screening for money laundering/terrorism watchlists and PEP lists.
Q: How do you check the money laundering or terrorism watchlists? Also how do you check the PEP lists? A: easyAML automatically checks all relevant watchlists and PEP lists as part of the integrated KYC process. We partner with Dow Jones who maintains global lists. The system screens against money laundering and terrorism financing watchlists, checks PEP databases, provides documented results, and maintains records.