CDD (Customer Due Diligence)

Customer Due Diligence (CDD) is the process financial institutions and businesses use to verify the identity and background of their clients. This helps ensure the customer’s activities are legitimate and compliant with laws aimed at preventing crime like money laundering and fraud. CDD involves collecting information such as name, address, and identification documents, and assessing the purpose of the relationship. The goal is to understand who the customer is, their source of funds, and their risk level. This process promotes trust and security for both the institution and the broader financial system.