Customer due diligence requires that the bank or other obliged entity knows on whose order and with whose funds transactions are made. Obliged entities have a statutory obligation to request from the customer information on the customer’s need to use the services as well as information on the customer’s activities, financial status and use of services.
In some situations, these clarifications may be referred to as a “money laundering form” or “money laundering questions”, even though they generally only concern the statutory collection of information required for customer due diligence.
The obliged entity is also entitled to enquire, if necessary, about the origin and purpose of funds paid into an account. A bank may, for example, request from the customer written clarification on the origin of funds paid into the customer’s account as well as certificates on the customer's business, extracts from various registers, or other documents, such as bills of sale or a will.