What is Simplified Customer Due Diligence?

Simplified CDD, are reduced due diligence measures that may be applied by FIs or DNFBPs to customers that have been assessed as posing a low risk in terms of business relationship, which includes considering the ML, TF, and PF risks identified by a Virgin Islands’ national risk assessment or a risk assessment conducted by a relevant authority (see section 19 (7) of the AMLTF Code of Practice).

To make this determination, the FI or DNFBP may consider applicable factors such as:

• the source of fixed income;
• whether the customer is a:
  • financial institution regulated for AML/CFT/CPF compliance;
  • publicly listed company subject to regulatory disclosure requirements;
  • government statutory body;
• life insurance policies with annual premiums of $1,000 or less;
• pension scheme insurance policies with no surrender clause and cannot be used as collateral;
• where the body corporate is part of a group that is subject to and adequately supervised for AML/CFT/CPF compliance consistent with FATF Recommendations; and
• other factors included in section 19 (6) of the AMLTF Code Practice.

Where such low risk is determined, the due diligence measures outlined in sections 19 (2), (3) and 4(b) may be applied in a simplified manner.