Under the Wwft [Anti-Money Laundering and Anti-Terrorist Financing Act], institutions are legally obliged to conduct customer due diligence (CDD) before entering into any business relationship. Institutions include:
- Banks and financial enterprises
- Certain designated entities acting in the course of their professional activities (natural persons, legal entities or companies)
In addition, customer data is monitored periodically and must be kept up to date throughout the relationship. These initial and ongoing CDD requirements apply to Saxo Bank.
Documentation and information from each of Saxo’s clients is required prior to the start of a business relationship. During periodic monitoring and updating of customer data, additional information or documentation may be requested (for example, more information about account transactions after they occur).
The purpose of customer due diligence is to enable Saxo Bank to do at least the following:
- Identify the customer and verify his/her identity.
- Identify and verify the ultimate beneficial owner (UBO) of the customer.
- Identify and verify the director(s) of the customer.
- Gain insight into the ownership and control structure of the customer (for legal entities).
- Determine the purpose and intended nature of the business relationship.
- Establish whether the natural person representing the customer is authorized to do so.
- Determine the origin of the funds and/or the origin of the assets.
Read more about the CDD process in this article.