Knowing your customers and their customers and their customers and so on and so on

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Posted July 15, 2014 in by Argos Risk 

At the end of the day, do you really know your customers?

While working with our Argos Risk bank subscriber s, we’ve discovered on multiple occasions that some of their customers may be originating ACH transactions for their customers. This multi-level customer relationship is called a “Nested” Third-Party Sender. A Nested Third-Party Sender looks like a typical originating customer but is actually a customer that originates ACH transactions for its own customers. This type of customer creates an additional level of risk for an ODFI because the originating institution may not actually realize what types of businesses it is working with. To protect itself from this type of risk, the ODFI not only needs to know their customers (KYC) and their customer’s customer (KYCC), but also their customer’s customer’s customer (KYCCC).

Download our latest white paper today to learn more about Nested Third-Party Senders and how to better manage the risk associated with these more commonly occurring customer types.