Keywords to get started:
- Know-Your-Customer (KYC) refers to the identification process required by AML Regulations.
- Customer Due Diligence (CDD) is the expression used in the AML regulations to describe the background checks commonly known as KYC. The CDD can be modulated according to the customer's risk level.
- Enhanced Due Diligence (EDD) is a more complex CDD procedure that takes place where the customer has a higher risk profile. It's the case, for example, of Politically Exposed Person (PEP), meaning a person who is or has been entrusted with prominent public functions.
- Know-your-Business (KYB) concerns the same CDD process when this applies to businesses, instead of individual consumers. Companies that offer their services to other companies (B2B) need to verify the identity of the real person they are doing business with, that is the natural person who ultimately owns or controls the legal entity on whose behalf a transaction is being conducted (Ultimate Beneficial Owners - UBOs).