Customer Due Diligence (CDD)

Customer Due Diligence (CDD) is a process businesses use to verify the identity of their customers and understand their financial activities. This is important for preventing fraud, money laundering, and other illegal activities. During CDD, a business collects information such as name, address, and identification documents. They assess risks associated with the customer, ensuring they comply with laws and regulations. Essentially, CDD helps businesses ensure they know who they are dealing with, maintaining trust and safety in financial transactions.