Know Your Customer (KYC) and Customer Due Diligence (CDD) Best Practices Training Course

Know Your Customer (KYC) and Customer Due Diligence (CDD) Best Practices Training Course

Introduction

In an increasingly regulated and interconnected global financial landscape, the mastery of Know Your Customer (KYC) and Customer Due Diligence (CDD) is non-negotiable for financial crime prevention and regulatory compliance. Know Your Customer (KYC) and Customer Due Diligence (CDD) Best Practices Training Course is designed to equip professionals with the practical, risk-based methodologies and current best practices required to build and maintain robust AML/CTF programs. We will dissect the global regulatory framework including the Financial Action Task Force (FATF) guidelines to ensure your organization is shielded from the colossal reputational risk and crippling fines associated with failures in customer onboarding and ongoing monitoring. Mastering these procedures is the first line of defense against money laundering, terrorist financing, and sanctions evasion, fundamentally protecting your enterprise's integrity.

This course goes beyond mere theory, focusing on the operational excellence needed to transform compliance from a bureaucratic hurdle into a competitive advantage. Participants will gain expertise in implementing Enhanced Due Diligence (EDD) for high-risk profiles such as Politically Exposed Persons (PEPs) and complex Beneficial Ownership structures, utilizing RegTech and digital identity verification to streamline processes. By integrating case study analysis and practical application of the risk-based approach (RBA), this program prepares your team to navigate the complexities of international compliance, manage financial crime threats, and ensure verifiable audit trails. This comprehensive, hands-on training is essential for mitigating exposure in a rapidly evolving FinTech and cross-border business environment.

Course Duration

5 days

Course Objectives

1. Master the global AML/CTF regulatory framework and their direct application.
2. Differentiate between Simplified, Standard, and Enhanced Due Diligence (EDD) requirements.
3. Implement the risk-based approach (RBA) for initial and ongoing customer risk assessment.
4. Identify and verify complex Beneficial Ownership (BO) structures across various entity types.
5. Develop robust procedures for identifying and managing Politically Exposed Persons (PEPs).
6. Apply practical techniques for effective customer identification and verification (ID&V).
7. Detect and interpret red flags and indicators of suspicious activity and financial crime.
8. Formulate best-practice policies for document retention and maintaining verifiable audit trails.
9. Strengthen compliance controls against threats like sanctions evasion and proliferation financing.
10. Analyze critical financial crime case studies to derive actionable lessons learned.
11. Utilize RegTech and e-KYC solutions for digital onboarding and process automation.
12. Manage the lifecycle of customer information, including periodic reviews and trigger events.
13. Minimize organizational exposure to regulatory fines and reputational risk through compliance.

Target Audience

1. Compliance Officers and AML/CTF Specialists 🛡️
2. KYC/CDD Analysts and Onboarding Teams
3. Risk Management and Internal Audit Staff
4. Relationship Managers and Client-Facing Personnel
5. Legal Professionals and Corporate Secretaries
6. FinTech and Digital Banking Operators
7. Regulatory Affairs and Governance Professionals
8. Senior Management

Course Modules

Module 1: Foundations of KYC/CDD and the Global AML Landscape

• Defining KYC, CDD, and their role within the broader Anti-Money Laundering and Counter-Terrorist Financing regime.
• Overview of the FATF Recommendations, Wolfsberg Principles, and major international directives.
• Understanding the penalties, regulatory fines, and reputational risk for non-compliance.
• Building a strong "tone from the top" and firm-wide compliance consciousness.
• Case Study: Analysis of a major bank's multi-million dollar fine for systemic KYC failure and the subsequent remediation efforts.

Module 2: The Risk-Based Approach (RBA) and Customer Risk Profiling

• Applying the RBA to allocate resources effectively and tailor due diligence.
• Assessing customer, geographic, product, service, and delivery channel risk.
• Methodology for assigning initial risk scores and determining appropriate CDD level.
• Establishing clear, defensible policies and procedures for risk classification.
• Case Study: Practical exercise on risk-profiling a new client: a complex offshore trust versus a local retail individual.

Module 3: Standard and Simplified Due Diligence (SDD)

• Standard CDD Requirements.
• Verification Methods.
• Simplified Due Diligence.
• Source of Funds/Wealth.
• Case Study: Review of an SDD failure where a 'low-risk' corporate vehicle was exploited by a foreign shell company for minor transactions.

Module 4: Enhanced Due Diligence (EDD) for High-Risk Clients

• Circumstances necessitating Enhanced Due Diligence.
• Politically Exposed Persons (PEPs).
• Beneficial Ownership (BO).
• Source of Funds/Wealth Verification.
• Case Study: The 'Panama Papers' or 'Pandora Papers' leak, examining the use of offshore entities and the failure of multiple institutions to identify beneficial owners and PEP ties.

Module 5: Ongoing Due Diligence and Transaction Monitoring

• Continuous Monitoring.
• Periodic Review.
• Trigger Events
• Transaction Surveillance.
• Case Study: An example of a successful detection via transaction monitoring where a sudden, large cross-border wire transfer from a low-risk client triggered an immediate EDD review.

Module 6: Sanctions Compliance and Adverse Media Screening

• Global Sanctions Regimes.
• Screening Tools and Data.
• False Positives Management.
• Proliferation Financing.
• Case Study: A case detailing the fine imposed on an institution for failing to block or report transactions involving a sanctioned entity due to an outdated screening process.

Module 7: Technology, Digital ID, and RegTech Solutions

• Digital Transformation.
• e-KYC and Digital Identity.
• Data Management
• KYC Utilities and Shared Platforms.
• Case Study: Reviewing a successful implementation of a digital onboarding process, contrasting the old manual process with the new automated, secure, and compliant workflow.

Module 8: Governance, Reporting, and Audit

• Governance Framework.
• Suspicious Activity Reports (SARs/STRs)
• Quality Assurance (QA) and Audit.
• Training and Competency.
• Case Study: Reviewing an internal audit report finding significant gaps in a firm's CDD file quality and the subsequent mandatory remediation plan to address systemic weaknesses.

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.