Related Terms
DEFINITION
Customer Due Diligence (CDD)
CDD is the process of identifying and verifying a client’s identity, assessing their source of funds and wealth, understanding the purpose of the business relationship, and evaluating the potential money laundering risks they pose.
Synonyms
Know Your Customer (KYC)
Acronyms
CDD
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Synonyms
Know Your Customer (KYC)
Acronyms
CDD
Examples
The bank collects identifying information, screens clients, and assesses their risk profile as part of its customer due diligence process.
FAQ
What are the minimum CDD requirements for new clients?
Minimum CDD includes identifying the client, verifying that identity, and understanding the purpose of the business relationship.
How does CDD differ for high-risk clients?
High-risk clients require enhanced due diligence with more detailed information collection and verification, and more frequent checks.
What ongoing CDD is required through the client lifecycle?
Ongoing CDD includes transaction monitoring and periodic KYC reviews to identify changes in client risk profiles over time.
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