| Customer Due Diligence (CDD) is the process by which businesses verify the identity of their customers and assess the risks associated with establishing or maintaining a business relationship. It involves collecting and validating key information such as ownership details, nature of business, source of funds, and transaction patterns to ensure the customer is legitimate and not involved in illegal activities. CDD is a fundamental part of regulatory compliance frameworks, especially in banking and financial services, helping organizations prevent fraud, money laundering, and other financial crimes while strengthening overall risk management practices. |
