Search Icon

Customer Due Diligence (CDD)

A regulatory requirement that covered financial institutions to identify and verify the identity of the natural persons (known as beneficial owners) of legal entity customers who own, control, and profit from companies when those companies open accounts. Compliance with the CDD rule is achieved by performing background checks and other screening on the customer to ensure that proper customer identification and risk assessment is completed before being onboarded. CDD is a core part of Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance initiatives.