🏦 Customer Due Diligence (CDD)
📚 US Capital Private Bank Knowledge Base
📖 Definition
Customer Due Diligence (CDD) is the process banks use to verify the identity of their customers and assess potential risks for money laundering or terrorist financing. It is a fundamental part of regulatory compliance designed to ensure banks know who they are doing business with.
⚙️ How It Works
CDD involves collecting and verifying customer information such as identity documents, source of funds, and business activities. Based on risk assessment, enhanced due diligence may be required for higher-risk customers or transactions.
📝 Key Features
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🆔 Identity Verification: Confirming customer identity through official documents.
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📊 Risk Assessment: Evaluating the customer’s risk profile.
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🔍 Ongoing Monitoring: Continuously reviewing transactions for suspicious activity.
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📋 Record Keeping: Maintaining accurate customer data for regulatory review.
✅ Benefits
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Prevents banks from being used for illicit activities.
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Complies with AML and KYC regulatory requirements.
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Protects the bank’s reputation and reduces legal risks.
⚠️ Considerations
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Requires robust data collection and privacy safeguards.
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Risk of false positives or negatives in customer risk profiling.
🔎 Related Terms
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⚖️ Anti-Money Laundering (AML)
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📋 Know Your Customer (KYC)
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🔐 Enhanced Due Diligence (EDD)
📚 References
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🌐 Financial Action Task Force (FATF) – Guidance on Customer Due Diligence
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📄 Basel Committee on Banking Supervision – AML/CFT Principles
📞 Contact US Capital Private Bank
📧 Email: [email protected]
🌐 Website: https://uscapitalprivatebank.com