Understanding Due Diligence

Due diligence is a part of each of our lives, although we may not even realize it. Essentially, due diligence, when boiled down to its core, is the act of taking care to make sure a business or person is trustworthy before committing to a business relationship with them. It is akin to making sure the person with whom you are interacting socially is, in fact, who they claim they are.

When we extrapolate that concept into the business world, due diligence is the core of building trust with companies, consumers, and the general public. In the business sector, due diligence means taking necessary steps to mitigate risk. Customer Due Diligence (CDD) is the act of ensuring that others are fully risk assessed before beginning a business relationship with them. Customer Due Diligence (CDD) or Know Your Customer (KYC) policies must be in place to help prevent identity theft. Synthetic identity fraud, money-laundering, terrorist and financial crimes, and more.

BThe United States’ Federal Financial Institutions Examinations Council on Customer Due Diligence (FFEIC) and the Financial Action Task Force (FATF) have set forth protective guidelines on KYC/CDD to which businesses must adhere.

By utilizing Liberty Data's REALSearch.com, businesses can know their clients and reduce their risks in numerous ways, including via EIN credit reports, with reports integrated into background details within minutes. EIN Reports show Officers, Staff, Executives, EIN Data, Secretary of State, Bankruptcy, Liens, Judgments, CRedit & Payment Trends, Risk Score and IRS Federal Tax Liens. REALSearch’s FinCEN - CDD tool also offers a quick, reliable, and easy way to validate a company’s legal responsible officers. In addition, financial institutions can now utilize REALSearch’s Synthetic Identity Fraud tool, in which a customer can be validated as either legitimate or fake.