Yes, the Lean Services can help you to perform Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) checks on your users (Lean End-users). Both CDD and EDD can involve complex procedures, but by applying a risk-based approach, it’s manageable and can be achieved using the Lean Services.
- Obtain additional verification
Standard Customer Due Diligence (CDD) requires verifying End-user identification information (such as their name, date of birth, and residential address) using external documentation, such as a passport, drivers license, or other state-issued identity document. EDD requires obtaining additional identity verification.
Through Lean’s Data API End-point, we offer (i) proof of address checks through our Identity API; and (ii) know-your-customer (KYC) and anti-money laundering (AML) checks through our Account Verification API and Name Verification API.
Our Identity API allows you to collect address information directly from the End-user's bank account, whilst our Account and Name Verification APIs allow you to undertake additional KYC and AML checks to confirm whether the name of the End-user in your system matches the name of the account holder held by the bank. This additional check reduces fraud as it prevents End-users from sending money from an account they do not own.
- Establish the source of wealth and funds
As part of EDD, Clients often need to obtain information that will indicate the origin of the End-user's wealth and source of funds. Any inconsistencies between their net worth, wealth source, or earnings may be cause for suspicion and can be investigated further.
Lean’s Data API allows our clients to identify origin of wealth and source of funds by collecting the following data points:
- Account Information: ability to access all accounts (checking, savings and credit card)
- Balance: see real-time balance of End-users
- Transaction history: we provide three (3) years worth of account history
- Income Insights: we provide enhanced machine learning tools that allow our clients to retrieve transaction patterns from End-user's spending and income, including being able to view which categories of spend and merchants the End-user is repeatedly making purchases from, as well as sources of recurring income (such as salary / rental information etc).
- Track ongoing transactions
One of the key requirements of EDD is the ability to analyse End-user's transaction history, including interested parties, transaction processing times, and the purpose and nature of their transactions.
Lean’s Data API goes above and beyond standard EDD reviews with the collation of the standard 3-6 month bank statements, and instead provides our Clients with three (3) years worth of account history.
- Develop an ongoing monitoring strategy
When instigating EDD, regulators often require Clients to develop a strategy for continuous monitoring of End-user's in the future. This should be done in combination with a review of data the End-user has already provided to the firm. Certain transactions may not seem suspicious in isolation, but may form part of a continuous pattern of activities that indicate illicit activity when viewed as a whole.
Lean’s Data API provides not only a snapshot of information upon first use, but our Identity API and Account and Name Verification APIs can be used on a continuing basis to form part of an ongoing monitoring strategy. Together with the collation of three (3) years worth of account history, this has proved to be a very solid compliance monitoring plan for our Clients.
As a reminder, Lean’s Data API obtains End-user data from one or more of the End-users account(s) held with bank(s), to which the End-user consents to being accessed by Lean and may include the following data:
- End-user information (including name, date of birth, gender, address, email, telephone number, national ID number);
- account details (including account name, number, type, IBAN, branch code, currency, balance); and
- categorized transaction details (including transaction amount, recipient, date, description, currency).