A Client Information Sheet (CIS) is a formal document used in international trade transactions to collect, verify, and authenticate the personal and corporate details of a prospective counterparty. It is a key instrument that facilitates transparency and trust between buyers, sellers, intermediaries, and financial institutions. The CIS serves as a preliminary disclosure document that initiates the compliance and due diligence processes essential for the successful execution of international commercial engagements.
A comprehensive CIS typically includes the following categories of information:
Corporate Details:
Registered legal name of the company
Company registration number and country of incorporation
Registered office address and principal place of business
Tax Identification Number (TIN) or equivalent
Personal Information:
Full name of authorized signatories or beneficial owners
Passport copies or national identification documents
Residential address verification
Contact information (email address, telephone number)
Banking Information:
Bank name and address
Account number and SWIFT/BIC codes
Account holder’s name (must match corporate details)
Transaction Details:
Nature and description of goods or services
Anticipated volume and value of transactions
Incoterms and delivery specifications
Compliance Documentation:
Certificate of Good Standing
Proof of Funds (POF) or Proof of Product (POP)
Anti-Money Laundering (AML) and Know Your Customer (KYC) declarations
Sanctions screening confirmations (if applicable)
The CIS plays a critical role in:
Facilitating Due Diligence: Enables counterparties to perform KYC, AML, and sanctions screening efficiently.
Building Trust and Transparency: Provides early assurance that the counterparty is legitimate and financially capable.
Risk Mitigation: Helps identify potential red flags or discrepancies before significant contractual obligations are formed.
Transaction Structuring: Assists intermediaries and financial institutions in determining appropriate deal structures, terms, and payment mechanisms.
A well-documented CIS provides security by:
Verification of Identity: Ensuring that all parties are dealing with legitimate, registered entities and verified individuals.
Prevention of Fraud: Reducing the likelihood of engaging with fraudulent or misrepresented counterparties.
Enhanced Accountability: Creating a paper trail that can be used for legal recourse if disputes arise.
Financial Integrity: Confirming that the parties involved have the requisite financial capacity to fulfil their contractual obligations.
Financial institutions, such as banks providing instruments like Letters of Credit (LCs), Standby Letters of Credit (SBLCs), or Documentary Collections, frequently require a CIS as part of their internal compliance and risk management protocols.
International trade transactions are subject to strict regulatory frameworks governing anti-money laundering (AML) and counter-terrorism financing (CTF) measures. Know Your Customer (KYC) obligations require entities to verify the identities of their clients and understand the nature and purpose of the business relationship.
A CIS contributes directly to fulfilling KYC and AML requirements by:
Collecting Mandatory Information: It gathers all essential data points necessary for KYC compliance.
Facilitating Screening Processes: Enables counterparties and financial institutions to conduct sanctions list checks, politically exposed persons (PEP) screenings, and adverse media searches.
Ensuring Continuous Monitoring: Information disclosed in the CIS forms the baseline for ongoing due diligence throughout the lifecycle of the commercial relationship.
Preventing Financial Crime: By identifying and mitigating risks associated with money laundering, terrorist financing, and other illicit financial activities.
Under international regulations such as the Financial Action Task Force (FATF) Recommendations and local legislations like the U.S. Bank Secrecy Act (BSA), the EU’s Anti-Money Laundering Directives (AMLD), and equivalent national laws, maintaining accurate and up-to-date CIS records is a legal necessity.