Customer Due Diligence (CDD)

Customer Due Diligence (CDD) refers to the process followed by businesses to collect and verify information about their customers to ensure compliance with anti-money laundering (AML) regulations and to mitigate risks associated with illicit activities. CDD involves conducting a thorough investigation of customers’ identities, backgrounds, and transactions to assess the level of risk they pose to the business. This includes gathering data such as name, address, date of birth, and nationality, as well as conducting checks against relevant watchlists and databases. CDD aims to identify any unusual or suspicious activities, such as money laundering or terrorist financing, and helps businesses make informed decisions about their relationships with customers, determine appropriate risk levels, and establish effective risk mitigation measures.