Continuous Customer Scanning and Changes Monitoring
Customer due diligence is not a one-time exercise. Under the UK regulations and equivalent AML rules, you must keep up-to-date information on your customers so that you can amend your risk assessment if their circumstances change and carry out further due diligence where necessary.
What counts as a change of circumstances
Changes that should trigger a review include:
- a significant change in the level or type of business activity
- a change in the ownership structure of a business
- a change of the main residence address, including a move to another country
- a change in the legal status of the entity, for example entering liquidation
Why it is hard to do manually
With a large customer base, keeping every record in step with the official registers is a real challenge. Firms are expected to check periodically and to synchronise their customer database, such as a CRM, with the official records so that changes do not go unnoticed.
The kinds of change that matter most are exactly the ones that are easy to miss: ownership changes, address changes and changes in the type of activity.
Doing it automatically
These checks can be run on a schedule rather than by hand. UK Companies Monitoring on the Hyperflow platform re-scans a customer list against Companies House, flags changes and produces reports, so monitoring becomes a routine process instead of a manual hunt.