Reliance on intermediares: pros and cons
Lisa Arquette, associate director of the new Anti-Money Laundering and Financial Crimes Branch of the U.S. Federal Deposit Insurance Corporation, shared advantages and disadvantages of relying on third-parties for customer identification and due diligence.
Pros
Pros
- Meets international standards (Financial Action Task Force and Basel)
- Reduces time, cost of obtaining, documenting CIP (customer identification program) information
- Streamlines account and transaction processing of known customers
Cons
- Indirect verification of customer identity
- Procedure may not comply with internal standards
- Relationship must be managed
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