A legal entity is a lawful organization, association, or other entity that has legal rights and obligations such as entering into agreements or contracts, paying debts, suing and being sued, and being held accountable for illegal activities.
To comply with their KYC and AML regulations, any financial institution needs to conduct the customer due diligence of a legal entity prior to establishing a relationship with it.
This CDD (Customer Due Diligence) process typically involves several steps:
- Corporate Identity Verification
- Key personnel due diligence, including Ultimate Beneficial Owners, directors, officers, and other employees that have control
- AML Risk Screening
- Enhanced Due Diligence: In the case of something alarming being uncovered during the initial risk screening, or if not enough information was found, enhanced due diligence is conducted to further investigate the issues.
Corporate identity verification with iComply
iComply delivers KYC portals that enable businesses to authenticate, onboard, and screen authorized representatives of legal entities. These solutions are configured to be dynamic and load a unique regulatory workflow for each of the ISO-3166 jurisdictions you serve.