What is Customer Due Diligence (CDD)?

Topic Progress:

What is Customer Due Diligence (CDD)?

The term CDD stands for Customer Due Diligence, these are steps to helps categorise/determine the level of risk a client poses to any Financial Institution (FI). 

Customer Due Diligence information comprises the facts about a customer that should enable an organisation to assess the extent to which the customer exposes it to a range of risks. These risks include money laundering and terrorist financing.

The risks are categorised into three groups: 

  • Simplified (low risk) such accounts are reviewed every 3 years 
  • Standard (medium risks) reviewed every 12 months 
  • Enhanced (high risk) such accounts can be reviewed anytime in suspicion of money laundering of financing terrorism.

Leave a Reply

Your email address will not be published. Required fields are marked *