Customer Due Diligence - What is CDD and its connection to AML?
CDD, or Customer Due Diligence, is an important concept to know – especially for businesses that are subject to anti-money laundering laws, regulations, and directives. What is CDD in banking for example?
Following the EU’s latest money laundering directive (AML 5) which was issued in 2020, there have been a number of changes to money laundering laws in Europe. The biggest change is that businesses were obliged to transition to an anti-money laundering (AML) risk assessment model that demands more of businesses and their ability to correctly assess their customers and client relationships – which is where CDD comes into the picture.
In this article we comprehensively explain what CDD is – and answer the most frequently asked questions about the subject.