Customer Due Diligence (CDD) Outsourcing means handing over some or all your CDD to a trusted partner. Instead of managing the process entirely in-house, you can collaborate with experts on things like onboarding checks and risk-rating to ongoing monitoring and record keeping.
The AMLHUB outsourcing team manages the outsourcing for many New Zealand reporting entities. We have good oversight over the things that go right, and the ways it can go wrong.
Keep reading to learn about the six most common mistakes made in customer due diligence (CDD), and how you can avoid them. Plus, download your copy of the ID Document Guide.
This blog was updated 12 February, 2024.
The Financial Markets Authority and Department of Internal Affairs released updated guidance on outsourcing Customer Due Diligence that reiterates a very important message for anyone using third parties to manage it.
On August 2021, the FMA issued its AML/CFT Monitoring Insight Report for 2018 to 2021. The Director of Supervision noted that the AML/CFT regime has now matured to such an extent that the FMA has less tolerance for AML non-compliance. In other words, businesses are expected to have a strong handle on meeting their AML/CFT obligations.
We can expect this view to be true for the other Supervisors: DIA and RBNZ.
