Customer due diligence (CDD)
Identifying and verifying customers, understanding the purpose of the relationship and monitoring it on an ongoing basis.
Overview
CDD is a core AML requirement under FATF standards and national laws. It covers identity verification, beneficial ownership, risk rating and ongoing monitoring, with enhanced due diligence for higher-risk customers such as PEPs.
It connects most directly to KYC, KYB, Anti-money laundering and PEP.
Check the official sources below for legal scope, applicable dates and exceptions. This entry is an explanatory reference, not legal advice.
Why it matters
CDD failures are among the most common findings in AML enforcement.
Who it affects
Banks, payment firms, crypto businesses, insurers and other obliged entities.
Where it sits
Ten linked steps connect where you operate to the proof that you complied.
- 01Jurisdiction
- 02Industry
- 03Activity
- 04Authority
- 05Regulation
- 06Requirement
- 07Guidance
- 08Control
- 09Evidence
- 10Enforcement
Connections
The terms most closely tied to CDD. Select one to open it.
What to do about it
- 1Define the owner, frequency, data and pass condition.
- 2Automate the test on source data where you can.
- 3Capture evidence on every run, including exceptions.
- 4Review exceptions and failures and record the decision.
From requirement to evidence.
CDD obligations from every applicable regime are mapped to the same onboarding and monitoring controls.
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