A glimpse inside...
Also unlike retail banks and their average customer, you have a close one-to-one relationship with clients. Your relationship managers have a particularly important role within the firm by managing and controlling the money laundering or terrorist financing risks it faces. However, wealthy clients often have business affairs and lifestyles that may make it difficult to establish what is “normal” and therefore what constitutes unusual behaviour.
As a result, the level of customer due diligence (CDD) is considerably higher than in retail banking. A relationship manager must record visit’s to client premises, reference and reputational searches, and an in-depth review of a client’s personal information before the new relationship is approved as part of enhanced due diligence, particularly for politically exposed persons (PEPs).
Private banking institutions tend to involve their relationship managers more as part of their investigation process. However, while your relationship managers can be pulled into the compliance process on a ‘need to’ basis, there is a need to closely control access to compliance related information.