These are companies whose main aim is the provision of comprehensive investigations on due diligence to their clients in the financial services industry. These companies provide due diligence reports to their clients, including financial service clients. These reports assist them in making compliance requirements and subsequently knowing who the legitimate customers are in the market.
Companies that financial services investigations can operate internationally and domestically in different countries of the world to work efficiently. They mainly specialized in enhanced due diligence in the markets that are emerging globally. The scale ranges from large organizations to even smaller organizations; they may all receive financial services investigations despite the scale. Investigations are the private equity firms, wealth management firms, investment banks, insurances, and even money exchange businesses who frequently seek financial services.
Such companies can assist their clients with correspondent banking due diligence, various regulatory requirements, and exception processing. They always get to tailor their reports to meet their clients’ budgets. Other than their client’s budgets, financial services investigations companies also consider the level of risk the client is willing to try out. They also get to assist their clients in knowing the type of customers they handle. Such companies may use customer identification programs for their benefit.
The Customer Identification Program
Among the reasons why the financial institutions have to implement a financial services investigation to their clients via a customer identification program is to verify the identity of the client wanting to open an account with the financial institutions. It is vital to ensure that the persons who wish to extend the accounts are those they claim. Failure to pass the test will get denied the opportunity and any further action taken depending on the cause of alarm.
The other reason for having clients go through a customer identification program is to maintain the records of the information used when verifying the person’s identity. Keeping records is essential because it enables the institution to date back to the stored records whenever there are any issues. Records may also be used as evidence if a legal matter arises with the client after an account with the financial institution.
The most crucial of the reasons why financial services investigations have to include the customer identification program is because the program can determine whether the person appears on any list of known terrorist organizations. However, the program would also indicate If the person is also a suspected terrorist. These steps are crucial in maintaining the safety of the other individuals using the bank, protecting them from any possible terrorist acts that may occur due to hosting the member within the community. Despite using the Customer identification program, the public gets urged to become vigilant and report any suspicious activity or suspicious-looking person to the relevant authorities. Only when authorities work hand in hand with the institutions and the public that the criminals and those not fir to be in the society shall get sieved behind bars.
