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Customer due diligence checklist

Customer due diligence checklist

This customer due diligence checklist helps you comply with regulatory requirements and understand customer backgrounds to prevent financial crimes.

Use this template with Lumiform

The Lumiform application helps frontline teams uphold internal standards effortlessly.
  • Customize this template or build your own
  • Fill out templates via mobile app
  • Assign and track corrective actions
  • Get reports and analyse your data
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or Download template as PDF
Customer due diligence checklist

This customer due diligence checklist helps you comply with regulatory requirements and understand customer backgrounds to prevent financial crimes.

Use this template with Lumiform

The Lumiform application helps frontline teams uphold internal standards effortlessly.
  • Customize this template or build your own
  • Fill out templates via mobile app
  • Assign and track corrective actions
  • Get reports and analyse your data
Prices start from ░░░ per month
Book a demo
Learn more
or Download template as PDF

This customer due diligence checklist is for verifying customer identities and assessing risk levels to prevent financial crimes and meet regulatory requirements. You’ll be able to collect essential identity information, evaluate risk factors, and monitor transaction patterns, which are critical components for compliance.

KPMG found that banks in the US spend over $25 billion on AML compliance every year, yet fines and sanctions continue to increase. With a structured approach, you’ll reduce compliance gaps and create a defensible audit trail that protects your organization.

Related categories

Preview of the template
Identity Verification
Customer name
Date of birth
Residential address
Government ID number
Occupation
Risk Assessment
Industry or business type
Annual revenue
Source of wealth
PEP (politically exposed person) status
High-risk jurisdiction
Transaction Monitoring
Cash transaction limit
Frequency of transactions
Transaction purpose
Funds transfer locations

Frequently asked questions

How can I use this customer due diligence checklist most effectively?

This checklist works best when incorporated into your regular onboarding workflow. Complete each section thoroughly, paying special attention to risk assessment factors that might trigger enhanced due diligence requirements. Document your verification sources and update the checklist periodically as customer information changes.

What documentation should I collect alongside this customer due diligence checklist?

You should gather government-issued photo ID, proof of address (utility bills or bank statements), and business registration documents for corporate customers. For higher-risk relationships, collect source of funds documentation, beneficial ownership information, and relevant business plans or financial statements.

What are the consequences if I miss something on the customer due diligence checklist?

Incomplete due diligence can lead to regulatory penalties, reputational damage, and increased vulnerability to financial crimes. Missing key verification steps might require costly remediation projects later, while incomplete risk assessments could result in inappropriate monitoring levels for high-risk customers.

What should I do if a customer cannot provide all information required on the due diligence checklist?

Document what information is missing, why it cannot be provided, and what alternative verification methods you’ve used. Consider whether the missing information affects your risk assessment, potentially requiring enhanced monitoring or senior management approval to proceed with the relationship.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.