What is SDD (Simplified Due Diligence)?

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Accepted Answer

Simplified Due Diligence (SDD) is a reduced set of Customer Due Diligence (CDD) measures applied by financial institutions and regulated entities to customers or transactions that present a demonstrably low risk of money laundering or terrorist financing, as permitted by Anti-Money Laundering (AML) regulations.

SDD (Simplified Due Diligence)

What is SDD (Simplified Due Diligence)?

What are the specific criteria and regulatory thresholds that permit the application of Simplified Due Diligence (SDD)?

How does Simplified Due Diligence (SDD) differ structurally from Standard and Enhanced Due Diligence (CDD and EDD) in the compliance lifecycle?

What are the operational benefits and inherent risks associated with the implementation of Simplified Due Diligence (SDD)?

What do major global regulatory bodies, such as FATF and EBA, mandate regarding the proper application and oversight of SDD?

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