KYC and AML for financial services include risk assessments, due diligence and transaction analysis to avoid fraud. There are different levels of Anti-Money Laundering (AML) and anti-fraud measures:

• CIP – Client Identification Programs: the basic level of AML that authenticates and verifies client’s identities by the financial institution before onboarding the customer. Simple information to be collected includes: name, phone number, identity documents, proof of address etc.
• CDD – Customer Due Diligence: financial institutions are held accountable for whether their customers are compliant with AML standards and need to conduct risk assessments of customers with the provided information. Financial institutions are also required to monitor accounts, detect and report potential financial crimes, on a continuous basis.
• EDD – Enhanced Due Diligence: additional level of due diligence for high-risk customers includes ongoing AML monitoring of and countries’ and individuals’ sanctions and Politically Exposed Person (PEP) lists, as well as screening of Adverse Media. The due diligence process should be guided by information provided by AML regulators in the company’s jurisdiction.