customer due diligence checklist

The Ultimate Customer Due Diligence Checklist

As somebody who works for a financial institution, AML compliance needs to be one of your top priorities. One of the main AML compliance regulations states that every financial service company must perform identity verification. This is why it’s especially important to make sure that your customers really are who they say they are, also known as customer due diligence (CDD).

That said, it’s crucial that you closely follow a CDD checklist to avoid fines, criminal negligence, or even a company shut down. Making sure your business is fully compliant with AML regulations is key to protecting both your company and your customers. 

This checklist will help to ensure your customer due diligence is completely taken care of:

Check Third-Party Databases 

If you rely exclusively on your internal resources to combat fraud or authenticate identities, you’ll likely miss catching fraudsters. This can be the result of human error, limited scopes, or unreliable documentation. That’s why many companies utilize a third party database to check identities. That said, your identity verification efforts can also be limited by your third party system if they aren’t mature or don’t draw from extensive databases. 

Because of this, it’s important to do proper research to make sure you choose the right system to back your efforts. Sophisticated systems like Intellicheck, a highly accurate third party identity authentication system, offer greater assurance in your fraud prevention tacts.

Assess Customer Risk 

Perform your standard risk assessment measures to determine any red flags as they relate to customer due diligence. This should include attaining certain information from the customer, such as:

  • Full name

  • Genuine photograph/passport/license

  • Residential address from utility bills, telephone bills or bank statements

  • Confirmation of involvement of the beneficial owner

  • Identity check the beneficial owner

  • Purpose of the planned transactions and the source of funds

  • Confirmation against PEP lists, sanctions and other watchlists

  • Detailed anti-money laundering policies and procedures

Because this list can be extensive, the process can be much more efficient and accurate with an integrated and automated identity verification system.

Ensure Secure Storage of Data 

Persistent record keeping is arguably as important as initially collecting it, especially when you are required to provide it at a regulator’s requests. The retention policy, meaning the precise amount of time to keep these records, is typically mandated by law and differs per country.

Safely storing and organizing data is the most effective way the company can gain an accurate understanding of the nature of their relationship with the customer. In addition, it is your responsibility to ensure that the data professionally collected from your customers or entities is protected and secured to avoid data breaches. Failure to store data can result in significant losses for not only your business but your customers as well. 

Make Sure Technology/Procedures Are Up-To-Date 

There are various types of AML software available to help you stay compliant and on top of your CDD efforts. Here are some AML software you should keep in mind when going through your customer due diligence checklist:

Certain AML software, like Intellicheck’s ID scanning solution, takes care of both scanning and storing data with accuracy and efficiency.

Perform CDD Effortlessly with Intellicheck

When it comes to customer due diligence, there’s a lot of things you need to keep in mind. That’s why we’ve created this CDD checklist to help you protect your business. As mentioned before, failure to abide by some of these steps can result in significant losses, jail time or company shut downs which can all be detrimental to financial institutions.

Intellicheck is the trusted ID authentication of law enforcement, State ID producers and financial institutions nationwide. Our solution is simple to use and easy to integrate into your existing systems. Simply scan the ID or have customers take a photo of the barcode on the back of their ID and Intellicheck will gather the information and determine authenticity with up to 99% accuracy. Intellicheck is one of the most effective solutions for catching fake IDs in real-time which can help you stay AML compliant and complete your customer due diligence with the highest possible accuracy.


To see a recorded demo, click here.

A transaction takes place every time you scan /validate an ID.

The transactions that you purchase are available for use for up to one year from the purchase date. When you run out of transactions, you automatically purchase another bucket of the same number of transactions that you originally purchased.

Groups allow you to set-up notifications that are shared across a specific set of devices. For instance if you marked a person as “do not serve” that alert would show when their ID was scanned by any user in the group.

Once you fill in the application form and are approved for purchase, you will be sent a credit card payment link. Once you have made your first payment, then Intellicheck will get you set up and ready to go.

Intellicheck Mobile is the app that your employees use to scan IDs. Once you have your account set-up, you can go to the Apple App Store or Google Play Store to download it for your device. Google Play Store Apple App Store

Standard pricing includes up to 5 devices. These devices will require a separate login, and can be set on the Intellicheck Admin Portal. Customers receive a link to the Admin Portal after they are set up.