Customer Due Diligence (CDD)

Customer Due Diligence is a cornerstone of effective AML programs. It goes beyond simple identification checks to include understanding the nature of the client's business, ownership structure, and the purpose of the business relationship. CDD typically involves three levels: Simplified Due Diligence for certain client types (although this is very rarely enough), Standard CDD for most clients, and Enhanced Due Diligence for high-risk clients (such as Politically Exposed Persons). For accountants, CDD is an ongoing process that starts at client onboarding and continues throughout the business relationship. It includes regular reviews and updates of client information, particularly when there are significant changes in the client's circumstances or transaction patterns.

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