5 essential tips for customer due diligence in shipping

1.   Establish the identity of your client

• Identify all parties involved in a transaction, including ship owners, charterers and sub-charterers.
• Confirm who appointed you and who will be paying.
• Clarify the roles and responsibilities of all parties.

2.   Get full details of your client

• Collect complete contact and banking information.
• Double-check the bank details. ITIC always recommends that you call to verify bank details, to avoid any potential fraud. 

3.   Check your client’s credibility

• Verify with ITIC if the client has any outstanding debts.

4.   Clarify payment responsibilities

• Confirm in writing who will pay for each service, especially if acting for multiple clients.

5.   Use external platforms and external resources to support the process 

• Use third-party databases (e.g., WorldCheck, Orbis), registries, trade press, and KYC service providers like Marcura or Windward to enhance due diligence efforts.
• Tailor due diligence to risk profiles, with more rigorous checks for high-risk jurisdictions.

KYC processes are critical for mitigating risks and ensuring compliance in the maritime industry. Understanding and implementing these steps can help you manage business relationships effectively and avoid potential financial and operational pitfalls. Keep these considerations in mind, and you'll be well on your way to thorough due diligence.