Customer due diligence

Customer due diligence (CDD) is a critical process deployed by financial institutions to identify and verify the identity of their clients. It aims to assess the risk associated with each customer, prevent identity theft, money laundering, and financing of terrorism. Effective CDD involves collecting and evaluating a range of information - such as customers' identities, financial transaction habits, and the source of their funds. This practice is essential for complying with regulatory requirements, ensuring the integrity of the financial system, and maintaining a trustworthy relationship with customers.