CDD · KYC · UBO RESEARCH
Know who you are doing business with
A business relationship often starts with commercial information. But assessing the risks properly sometimes requires more.
TradeRisk supports organisations with Customer Due Diligence, KYC, UBO research and additional risk assessments of customers and business partners.
What is Customer Due Diligence?
Customer Due Diligence is the process of gathering and assessing information about a customer or business relationship.
Depending on the risk, this may include examining identity, business activities, ownership, ultimate beneficial owners, reputation and geographical factors.
A risk-based approach
Not every customer requires the same level of scrutiny.
TradeRisk helps organisations strike the right balance between commercial speed and necessary risk management.
Where the risk is higher, additional information or research may be needed. Where risks are lower, a proportionate approach may be sufficient.
When can Enhanced Due Diligence be relevant?
- complex ownership structures
- elevated geographical risks
- PEP involvement
- adverse media
- sanctions risks
- unusual transactions
- insufficient transparency about business activities
- UBOs that are hard to establish
Our due diligence support
- Company and identity research
- KYC checks
- UBO research
- Ownership structure research
- Enhanced Due Diligence
- PEP screening
- Adverse media research
- Reputation research
- Country risk assessment
Our approach
STEP 1
Identification
We establish who the customer or business partner is and gather the available company information.
STEP 2
Structure research
We map the ownership structure and identify the ultimate beneficial owners.
STEP 3
Risk assessment
We assess relevant risk factors, including reputation, PEP status and jurisdiction.
STEP 4
Reporting
The findings are set out in a clear report with a risk classification and any points of attention.
Frequently asked questions
What is the difference between KYC and CDD?
KYC focuses on knowing and identifying a customer. CDD is broader and covers gathering and assessing information to better understand the risks surrounding a business relationship.
Who is a UBO?
A UBO is an ultimate beneficial owner: the natural person who ultimately owns or controls an organisation.
When is Enhanced Due Diligence required?
Enhanced Due Diligence may be appropriate when a business relationship or transaction has an elevated risk profile.
What is a PEP (Politically Exposed Person)?
A PEP is a person who holds or has held a prominent public function, such as a politician, judge or senior civil servant. Because of the increased risk of corruption or conflicts of interest, a business relationship with a PEP often calls for additional attention.
Is due diligence mandatory for my organisation?
Whether due diligence is a legal requirement depends on the sector and the laws and regulations an organisation is subject to, such as the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft). Even without a direct legal obligation, due diligence can be a sensible way to limit financial and reputational risks.
How long does a due diligence investigation take?
That depends on the complexity of the corporate structure and the level of risk. A standard investigation is often completed within a few working days; with a more complex ownership structure or Enhanced Due Diligence it may take longer.