Are you doing or planning to do business with an organisation that is not quite well known to you or your company?
As it is said, your customers are the lifeblood of your organisation, however, not knowing them well enough may expose and subject your business to potential risks such as the hazards of losing reputation, operational and legal risks.
Hence the principle of ‘Know Your Customer’ goes well beyond knowing the customer’s type of business to understanding the business relations that the customer has with other entities and networks, in order to mitigate the risk of the likelihood of getting caught in a web of potential criminal activities.
This briefing note sets out the principles to be implemented when new customers are acquired, and the importance of continuous monitoring of the operations of existing customers.
The objective is to emphasise that just ‘Knowing Your Customer’ is not enough, rather, a comprehensive due diligence carried out by experts is crucial for your business. The cost and time for conducting such due diligence procedures is not even a fraction of the financial and/or reputational loss that a business may face.
Importance of conducting due diligence