# FATF R.10 — Customer due diligence - **Part of:** [[FATF Recommendations]] Requires financial institutions to identify and verify customers and beneficial owners, understand the purpose of the business relationship, and conduct ongoing due diligence and transaction monitoring throughout it. CDD is triggered by establishing a business relationship, occasional transactions above USD/EUR 15,000 (or qualifying wire transfers), suspicion of money laundering or terrorist financing, or doubts about previously obtained identification data. Anonymous accounts are prohibited, and institutions unable to complete CDD must decline or terminate the relationship and consider a suspicious transaction report. ## Keyed AMLR articles - [[AMLR Art. 19 - Application of CDD|AMLR Art. 19]] — Application of CDD - [[AMLR Art. 20 - CDD measures|AMLR Art. 20]] — CDD measures - [[AMLR Art. 21 - Inability to comply with CDD|AMLR Art. 21]] — Inability to comply with CDD - [[AMLR Art. 22 - ID - verify customer + BO|AMLR Art. 22]] — ID / verify customer + BO - [[AMLR Art. 23 - Timing of verification|AMLR Art. 23]] — Timing of verification - [[AMLR Art. 25 - Purpose - nature of relationship|AMLR Art. 25]] — Purpose / nature of relationship - [[AMLR Art. 26 - Ongoing monitoring|AMLR Art. 26]] — Ongoing monitoring - [[AMLR Art. 28 - RTS on CDD information|AMLR Art. 28]] — RTS on CDD information - [[AMLR Art. 33 - Simplified due diligence|AMLR Art. 33]] — Simplified due diligence - [[AMLR Art. 34 - Scope of enhanced due diligence|AMLR Art. 34]] — Scope of enhanced due diligence - [[AMLR Art. 47 - Life - investment insurance|AMLR Art. 47]] — Life / investment insurance - [[AMLR Art. 79 - Anonymous accounts - bearer shares|AMLR Art. 79]] — Anonymous accounts / bearer shares ## Swiss counterparts - [[StGB Art. 305ter - Lack of due diligence and right to report|StGB Art. 305ter]] — StGB Art. 305ter Abs. 1 backs the identification of the beneficial owner with a criminal sanction. *(related)* - [[GwG Art. 3 - Verification of the identity of|GwG Art. 3]] — GwG Art. 3 requires identification of the contracting party from a probative document when a business relationship starts; for one-off cash transactions only above a significant value. *(direct)* - [[GwG Art. 4 - Establishing the beneficial owner|GwG Art. 4]] — GwG Art. 4 requires establishing the beneficial owner with the diligence the circumstances demand and verifying that person's identity. *(direct)* - [[GwG Art. 5 - Repetition of identification - re-establishing|GwG Art. 5]] — GwG Art. 5 requires repeating identification of the contracting party or the beneficial owner when doubts arise during the relationship. *(direct)* - [[GwG Art. 6 - Special due diligence obligations (clarification|GwG Art. 6]] — GwG Art. 6 Abs. 1 requires identifying the nature and purpose of the relationship, with scope and control frequency set by risk; Abs. 2 requires clarification of unusual or higher-risk cases. *(direct)* - [[GwG Art. 7a - Assets of low value (de|GwG Art. 7a]] — GwG Art. 7a lets the intermediary dispense with the Art. 3-7 duties for assets of low value where there are no indications of money laundering or terrorist financing. *(related)* - [[GwV-FINMA Art. 20 - Monitoring business relationships and transactions|GwV-FINMA Art. 20]] — GwV-FINMA Art. 20 requires effective monitoring of business relationships and transactions, which R.10 requires as ongoing due diligence. *(direct)* - [[GwV-FINMA Art. 44 - Required information|GwV-FINMA Art. 44]] — GwV-FINMA Art. 44 lists the particulars to obtain from the contracting party (Title 5 entities; banks follow VSB 20). *(direct)* - [[GwV-FINMA Art. 56 - Controlling person – principle|GwV-FINMA Art. 56]] — GwV-FINMA Art. 56 requires a declaration of the controlling person for unlisted operating legal entities (Title 5 entities). *(direct)* - [[GwV-FINMA Art. 59 - Beneficial owner – principle|GwV-FINMA Art. 59]] — GwV-FINMA Art. 59 requires a declaration of the beneficial owner of the assets (Title 5 entities). *(direct)* - [[VSB 20|VSB 20]] — For banks and securities firms, identification of the contracting party, controlling person and beneficial owner runs through VSB 20 (GwV-FINMA Art. 35). *(direct)* ## Authoritative text > [!quote]- FATF Recommendation 10 — text of the Recommendation (FATF Recommendations, updated June 2026); interpretive note not reproduced > **10. Customer due diligence** > Financial institutions should be prohibited from keeping anonymous accounts or accounts in obviously fictitious names. > Financial institutions should be required to undertake customer due diligence (CDD) measures when: > (i) establishing business relations; > (ii) carrying out occasional transactions: (i) above the applicable designated threshold (USD/EUR 15,000); or (ii) that are payments or value transfers in the circumstances covered by the Interpretive Note to Recommendation 16; > (iii) there is a suspicion of money laundering or terrorist financing; or > (iv) the financial institution has doubts about the veracity or adequacy of previously obtained customer identification data. > The principle that financial institutions should conduct CDD should be set out in law. Each country may determine how it imposes specific CDD obligations, either through law or enforceable means. > The CDD measures to be taken are as follows: > (a) Identifying the customer and verifying that customer's identity using reliable, independent source documents, data or information. > (b) Identifying the beneficial owner, and taking reasonable measures to verify the identity of the beneficial owner, such that the financial institution is satisfied that it knows who the beneficial owner is. For legal persons and arrangements this should include financial institutions understanding the ownership and control structure of the customer. > (c) Understanding and, as appropriate, obtaining information on the purpose and intended nature of the business relationship. > (d) Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution's knowledge of the customer, their business and risk profile, including, where necessary, the source of funds. > Financial institutions should be required to apply each of the CDD measures under (a) to (d) above, but should determine the extent of such measures using a risk-based approach (RBA) in accordance with the Interpretive Notes to this Recommendation and to Recommendation 1. > Financial institutions should be required to verify the identity of the customer and beneficial owner before or during the course of establishing a business relationship or conducting transactions for occasional customers. Countries may permit financial institutions to complete the verification as soon as reasonably practicable following the establishment of the relationship, where the money laundering and terrorist financing risks are effectively managed and where this is essential not to interrupt the normal conduct of business. > Where the financial institution is unable to comply with the applicable requirements under paragraphs (a) to (d) above (subject to appropriate modification of the extent of the measures on a risk-based approach), it should be required not to open the account, commence business relations or perform the transaction; or should be required to terminate the business relationship; and should consider making a suspicious transactions report in relation to the customer. > These requirements should apply to all new customers, although financial institutions should also apply this Recommendation to existing customers on the basis of materiality and risk, and should conduct due diligence on such existing relationships at appropriate times.