CDD (Customer Due Diligence)

Customer Due Diligence (CDD) is a mandatory, risk-based process for financial institutions and other regulated entities to verify a customer's identity and assess their risk profile to prevent financial crime, including money laundering and terrorist financing. CDD forms the foundational pillar of an effective Anti-Money Laundering (AML) program, requiring ongoing monitoring of customer transactions and relationships to ensure compliance with global regulations like the U.S. Bank Secrecy Act (BSA) and the Financial Action Task Force (FATF) recommendations.