As a financial institution or regulated company, you need certain information about customers to be able do financial business with them. It’s a form of due diligence that:
- Collects and analyses basic identity information
- Verifies that people aren’t fraudsters
- Monitors customers’ ongoing account behaviour
Most importantly, it helps you comply with anti-bribery and money laundering laws, decreases risk, prevents you becoming a victim or fraud or suffering reputational damage.