ECDD

Enhanced Customer Due Diligence ECDD Best Practice Lan’s Enterprise Limited Training Program Training Objectives What you’ll learn today: Define clear internal criteria for identifying ECDD category customers Demonstrate effectiveness of automated and manual ECDD systems Apply risk-based approach to Source of Funds/Wealth verification Implement proper documentation and monitoring procedures Recognize key risk indicators requiring enhanced verification Why ECDD Matters Critical Foundations ECDD is mandated by AML/CFT regulations when higher risk is identified ...

2024 Q3 AML Regulatory Inspection Focus Update Insights for Chinese Money Remitters Lan’s Enterprise Limited Training Program Training Objectives What You’ll Learn Today Ensure alignment between business practice and AML programme documentation Understand Chinese remittance characteristics and address regulatory misunderstandings Implement enhanced record keeping with proper time stamps and file notes Apply a holistic approach to Enhanced Customer Due Diligence (ECDD) Prepare effectively for upcoming regulatory inspections Overview Regulatory Inspection Context Several business partners are currently undergoing regulatory onsite visits. This training provides critical insights from recent inspections to help all BPs prepare effectively. ...

AML/CFT Webinar Customer Due Diligence — 2024 Refresh Lan’s Enterprise Limited Training Program Presented by: Angela Ji Contact: aml@gmfinance.co.nz Emergency Hotline: +64 09-309-8808 Overview 10 May 2024 — DIA, FMA and RBNZ jointly published updated CDD guidance Tied to AML/CFT Amendment Regulations 2023 in force from 1 June 2024 Five new guideline documents replacing/supplementing prior CDD guidance This session walks through what changed and what we must adopt at LEL Why the Refresh? 2021 Statutory Review of the AML/CFT Act identified gaps in CDD practice 2023 amending regulations clarified beneficial-ownership obligations Supervisors aligned on a single, risk-based, principles-based interpretation Real-world enforcement (Hills, SkyCity, Jiaxin) reinforced the need for clearer guidance The Five New Documents # Document Focus 1 Beneficial Ownership Guideline Identifying and verifying the natural-person owner behind every customer 2 CDD: Companies Standard and enhanced CDD on incorporated customers 3 CDD: Trusts Settlor / trustee / beneficiary / class verification 4 CDD: Limited Partnerships General partner ID + LP register checks 5 Enhanced CDD When ECDD is triggered, what extra steps are required What Changed — Beneficial Ownership 25% threshold confirmed for beneficial ownership of companies — but also any person with effective control regardless of shareholding Multi-layer corporate structures: must drill through every layer to natural persons Where no natural person can be identified, senior managing official must be CDD’d Document the reasoning — the supervisor wants to see how you concluded What Changed — Trusts & LPs Trusts CDD on every named beneficiary, settlor, trustee, and protector Where beneficiaries are a class, the class must be described and CDD applied to known members Discretionary trusts get extra scrutiny Limited Partnerships General partner is treated as the responsible party LP register must be checked against customer-provided info Foreign LPs trigger ECDD by default What Changed — Enhanced CDD ECDD triggers (refreshed) Trusts and vehicles dealing with assets Companies with nominee shareholders or directors Politically Exposed Persons (PEPs) Customers from high-risk jurisdictions Wire transfers above prescribed thresholds Anything else the entity’s risk assessment flags ECDD requirements Source of funds and source of wealth Senior management approval Enhanced ongoing monitoring frequency The Risk-Based Approach “Reporting entities must tailor their AML/CFT programme to their specific risk profile.” ...

🧩 Know Your Customers Get the Picture: The Complete KYC Cycle Q1 2022 Quarterly Training Lan’s Enterprise Limited Training Program Presented by: Angela Ji Do You Really Know Your Customers? “You think you know me, but you don’t know me…” The Reality: Knowing your customers is not a one-time event—it’s an ongoing journey of trust, vigilance, and verification. Training Objectives What you’ll learn today Understand the 6-step KYC cycle and why it never ends Identify when and how to perform Customer Due Diligence (CDD) Recognize situations requiring Enhanced Due Diligence (ECDD) Implement effective ongoing monitoring and transaction review Maintain proper records for regulatory compliance 🌍 The Risk-Based Approach One Size Does Not Fit All KYC depth depends on customer risk level Apply proportionate measures for low, medium, and high-risk profiles Reassess risk whenever new information arises Document rationale for every risk rating decision KYC: It Never Ends The 6-Step Continuous Cycle 👤 Identification – Verify who they are 🔍 CDD – Customer Due Diligence ⚠️ ECDD – Enhanced Due Diligence 🔄 Ongoing CDD – Keep information current 📊 Transaction Monitoring – Watch activity patterns 🧾 Account Review – Regular comprehensive assessment Step 1: Identification Making Sure Customers Are Who They Claim to Be Two Key Timing Requirements: Verify identity before starting the business relationship Verify identity periodically over time Core Principle: Ensure customers are genuinely who they claim to be throughout the entire relationship. ...