What is Customer Due Diligence (CDD)?
Customer Due Diligence (CDD) is the process of verifying a client’s identity and assessing their risk before doing business with them. It is a key part of AML/CTF compliance.
What does CDD include:
- Identity verification
Confirming the client’s identity using documents and information - Risk assessment
Evaluating the client’s risk level based on their profile - Ongoing monitoring
Reviewing client activity over time to detect unusual behaviour - Compliance responsibility
Assigning roles within your organisation to manage verification
Why it’s important:
CDD helps prevent fraud, money laundering, and financial crime by ensuring you know who your clients are.
What to do:
👉 Always complete CDD before approving a client
💡 Important: CDD is a mandatory compliance requirement under AML/CTF regulations
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