Your Guide to Customer Due Diligence
Actively protect your business from customers you’ll wish you never met with customer due diligence. From financial red flags to reputational issues and even criminal wrongdoing, knowing the risks before working with a customer is crucial. In some cases, it’s required by law, but in all cases, it’s a sound decision that safeguards your interests.
Why Conduct Customer Due Diligence?
Customer due diligence involves verifying identities and doing a risk assessment that allows you to uncover negative, suspicious, or potentially fraudulent actions.
You will learn about financial risks, such as bankruptcies or credit repayment issues, contract disputes, customer complaints, professional licensing issues, past or current criminal and civil litigation, and more.
For any company subject to AML (Anti Money Laundering) regulations, customer due diligence is a strict requirement. If you don’t comply, you could face stiff penalties ranging from fines to criminal prosecution.
However, whether required by law or not, verifying customer identities and uncovering any risks involved in working with them is key to protecting your business. get started today.
What is Customer
Due Diligence?
Customer due diligence (CDD) is the process of learning about your customers and determining if doing business with them presents any risks to your own company or reputation.
In the finance sector, customer due diligence helps meet the Know Your Customer requirements aimed at preventing money laundering and other financial crimes. For other businesses, it’s an important part of risk management.
Among other things, customer due diligence verifies identities and looks at business activities to uncover any red flags. Read on to find out more about customer due diligence, or get started now.
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What can The investigators uncover?
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Best Practices for Commercial Due Diligence
When you undertake an investigation, you want to give it the best chance of success.
Here are some steps you can take during your customer due diligence process.
Involve professionals
Companies like Business Screen, which has a track record of success, will ensure that nothing is overlooked.
Start Early
Begin the due diligence process early in your decision-making process and give yourself plenty of time to thoroughly analyze the results.
Communicate Effectively
Keep the lines of communication open with all stakeholders so everyone is informed and on the same page.
Document Everything
Keep detailed records of all findings and analyses for future reference.
Why Business Screen
With Business Screen, customer due diligence is simple and effective. Our mission is to give you the knowledge you need to make informed decisions by offering affordable, accurate, and timely due diligence investigations. We are driven by our principle values of transparency, accuracy, and speed.
Our services are available in all 50 states and some 200 other countries and territories. No matter what your needs are, our experienced team of investigators can help.
What to Expect
The process of customer due diligence might seem daunting, but our unique methodologies and state-of-the-art technology make it simple.
Next Steps
You can also choose to stay updated with our continuous monitoring option. We’ll routinely check for new issues and red flags to keep your operations secure and in compliance. For a more in-depth look at our process, check out this video.
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Step 2
We’ll get back to you with information and pricing
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Step 3
Use our online platform to provide basic information and submit your request for investigation
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Step 4
Your investigator begins the fact-finding process and provides a report within days
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Step 5
Review your report and submit any questions to your investigator
Prioritize Your Customer Due Diligence
Whether you’re complying with government regulations or conducting due diligence for your own peace of mind, it’s important to start early. Here are some costly risks you can avoid.
Financial Risks
Bankruptcies, tax liens, judgments, and credit issues that may impact your client's ability to pay
Contract Disputes
Civil litigation or breach of contract disputes tied to the company and its officers.
Reputation Issues
Negative news, customer complaints, and professional license issues with companies and individuals.
Criminal Activity
Criminal history, pending charges, or government watchlist appearances.
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