When is Customer Due Diligence (CDD) required?

<a href="/glossarycollection/customer-due-diligence" style="color:#48277C;" target="_blank" title="Customer Due Diligence"><u>CDD </u></a> is required when companies with AML processes enter a business relationship with a customer or potential customer to assess their risk profile and verify their identity.<br/><br/>

Financial institutions must carry out CDD in the various circumstances including:<br/><br/>

New Business Relationships - to ensure the customer matches their risk profile and isn't using a fake identity.<br/><br/>

Occasional transactions - in some cases, transactions over a certain threshold or involving entities in high risk foreign countries will require CDD.