Due diligence is the process of evaluating the risks connected with transactions and other business actions to assure they are in line with your organisation’s policies and procedures. It is a necessary stage that should not be ignored, especially when considering dealing with sensitive and high-risk areas.

In terms of enhancing the due diligence processes, there are several risk factors that you should consider. One of the important is definitely customer risk.

A customer risk assessment helps you identify whether your clients pose a money laundering, fraud, or perhaps other security risk. The method can also help you decide if you have to conduct extra checks to them.

Identifying and verifying the customer’s individuality is the first step in this procedure. This is a major part of customer due diligence that is required by law.

The next step is to assess the size of the relationship regarding the company as well as the customer. This really is done using a variety of diverse tools.

You will need to collect information about the customer’s financial website link history, spending patterns and source of funds. The data you collect can be matched with other facts from your sources to give you a clearer picture of your customer’s identity and financial risk profile.

In addition to this, you should also screen and keep an eye with your customer’s accounts. This can be performed using artificial intelligence (AI) and machine learning.