Due Diligence Checks

Anti Money Laundering checks | Know-Your-Clients checks

In today’s fast-paced business landscape, making prompt, informed decisions are pivotal. That is why we offer comprehensive due diligence analysis to mitigate risks, ensure compliance and safeguard your interests. Our experienced professionals conduct thorough assessments and provide detailed reports to support your decision-making process. From financial transparency to regulatory compliance, we’ve got you covered. 

FAQ

Due diligence is a comprehensive investigation process to verify the accuracy of information provided, assess risks and opportunities associated with a business transaction. It ensures informed decision-making and risk mitigation in various contexts such as mergers and acquisitions, investments, or legal proceedings.

Due diligence helps to mitigates risks, verify information accuracy, identify potential issues, and enhance negotiation positions. By thoroughly assessing potential transactions, businesses can make informed decisions, enhancing the success of the business transactions.

CDD is a standard process applied to all customers to verify identities and assess associated risk. It involves basic information such as name, address, date of birth etc.

EDD is a more rigorous process triggered by factors like politically exposed persons (PEPs), high-risk jurisdictions, or unusual transaction patterns. It involves gathering additional information such as source of funds, transaction purpose, and assessing customers’ background and activities.

On-site due diligence involves physically visiting a business or property to conduct inspections and investigations, providing firsthand insights and validation of information gathered. It enables evaluators to gather accurate information, assess risk effectively and make informed decisions based on direct observations and interactions with stakeholders.

AML

AML (Anti-Money Laundering) compliance refers to the measure businesses take to detect and prevent money laundering and terrorist financing activities. It’s crucial to prevent legal and reputational risks, ensuring regulatory adherence and trust among stakeholders.

AML compliance is crucial for business as it safeguards against financial crimes, maintains trust with stakeholders, and reduces legal risks. With robust AML measures in place, business can help to detect and prevent money laundering and terrorism financing activities. This not only protect the integrity of financial transactions but also enhances regulatory compliance, thereby strengthening business reputation.

An effective AML (Anti-Money Laundering) compliance program includes robust customer due diligence, ongoing monitoring, reporting suspicious activities, employee training, and regular program reviews. Watershore ensures comprehensive adherence to AML regulations, safeguarding your business from financial crime risks efficiently and proactively.

Penalties for non-compliance with AML regulations in Singapore include financial penalties imposed by authorities like MAS, varying based on severity. Individuals may face imprisonment, and companies risk hefty fines. Businesses also risk losing essential licenses, face reputational damage, and are subject to increased scrutiny with additional audits and compliance measures.

KYC

KYC stands for “Know Your Customer,” includes identity verification, address verification, and risk assessment. These checks are essential to businesses for ensuring regulatory compliance and reducing fraud risks. By having a thorough understanding of customers’ identities and associated risks, businesses can maintain compliance, enhance security and build trust.

For Individuals:

  • Copy of Identity proof (e.g. passport or identity cards)
  • Proof of residential address, dated within last 3 months (e.g. utility bill, bank statement)
  • Additional documents depending on nature of business relationship (e.g. source of funds declaration, employment details or income information)

For corporate:

  • Certificate of Incorporation
  • Business profile or ACRA Bizfile document
  • Memorandum and Articles of Association
  • Copies of identification documents of directors, beneficial owners and authorized signatories (e.g. identity card, passport)
  • Proof of business address, to be dated within last 3 months (e.g. utility bills, lease agreement)
  • Additional documents (corporate structure charts, financial statements, details of business activities)

To comply with KYC regulations in Singapore, businesses must implement robust customer due diligence procedures, this includes:

  1. Verify customer identities
  2. Monitor transactions for suspicious activities
  3. Adhere to regulatory guidelines set by authorities like Monetary Authority of Singapore (MAS).

Generally, it takes a few days to a week for individual customers and may extend to several weeks for corporate customers due to the complexity of verifying multiple directors and beneficial owners. Timely submission of complete and accurate documentation expedites the process.

Companies should perform KYC checks at the start of the business relationship and periodically thereafter depending on the risk profile of the client. It is recommended to review and update KYC information at least once a year for low-risk clients and more frequently for higher-risk clients or when there are significant changes in their circumstances or transactions.

Using online KYC check services offers enhanced security, efficiency, and compliance. It allows businesses to verify customer identities swiftly and accurately, reducing fraud risks and ensuring regulatory adherence. With automated processes and real-time verification, businesses can streamline operations and provide a seamless customer experience.

KYC Service Provider

Using Watershore for KYC service offers several benefits:

  1. Streamlined Compliance: Outsourcing KYC processes simplifies regulatory compliance, ensuring adherence without straining internal resources.
  2. Cost Efficiency: Reduces operational costs compared to maintaining an in-house KYC team and technology infrastructure.
  3. Advanced Technology: Access to cutting-edge identity verification technologies enhances accuracy and efficiency.
  4. Risk Mitigation: Improves fraud detection and minimizes the risk of regulatory fines by maintaining rigorous compliance standards.

KYC service providers like Watershore ensure data security through robust encryption protocols, strict adherence to data protection regulations like PDPA, and secure storage practices. Regular audits and compliance check further safeguard customer information, maintaining trust and confidentiality.

We bring the best solutions that meets your requirements

Knowledge & Expertise

In-depth local knowledge spanning over 15 years ensures regulatory compliance & risk-minimized processes.

Proactive & Timely

We take a proactive approach in managing regulatory deadlines and tax submissions to always ensure compliance.

Customized Solutions

There is no one-size-fits-all solution. We strive to understand & address individual needs with customized solutions to help clients achieve specific goals.

Strategic Advisory Services

Beyond compliance, we provide strategic guidance to optimize business structures, reduce tax liabilities, & navigate complicated regulatory environments.

Regular Updates

Clients can expect regular updates on business environment developments & other pertinent information. Our proactive communication empowers you to make the best-informed decisions.

Quality Assurance

Clients can count on us to maintain the highest standards & meticulous attention to detail in every aspect of our work, from financial reporting to legal documents.

Accessibility & Responsiveness

Being readily available & responding promptly to queries are critical aspects of our commitment to client satisfaction.

Continual Education

Continuous training for staff ensures ongoing improvement to deliver high-quality services with integrity & professionalism.