Customer Due Diligence and Correspondent Banking

The terms

• Due Diligence Questionnaire (DDQ)

  A due diligence questionnaire is a standard set of written questions sent to a customer, counterparty or partner so it can describe its ownership, business, controls and risk profile for the sender's review.

  Domain: Financial Crime

• Layered Ownership

  Layered ownership is a structure in which a company is owned through several intermediate companies, trusts or nominees, often across countries, which can make the real owner difficult to see.

  Domain: Financial Crime

• Ongoing Monitoring

  Ongoing monitoring is the continuing work of scrutinising a customer's transactions and keeping their information current, to confirm activity fits what the firm knows and to update the risk assessment when it does not.

  Domain: Financial Crime

• Purpose and Intended Nature of Business Relationship

  This is the due diligence step of finding out why a customer wants the relationship and what kind of activity is expected, so that later transactions can be compared with a clear baseline.

  Domain: Financial Crime

• Source of Funds (SoF)

  Source of funds is the origin of the specific money used in a transaction or placed into an account, such as a salary payment, a property sale or an inheritance, and the evidence that supports it.

  Domain: Financial Crime

• Source of Wealth (SoW)

  Source of wealth is how a customer accumulated their overall assets over time, for example through employment, a business, investments, inheritance or property, and the evidence that the story is credible.

  Domain: Financial Crime