What is Customer Due Diligence (CDD)?

Customer Due Diligence (CDD) is the process of verifying the identity of potential customers. Typically, this process gathers facts about potential customers enabling an organization to assess the extent to which the customer may expose the organization to a range of risks, including money laundering and terrorist financing activities. This process usually entails obtaining a customer's name, residential address, and official government documentation that includes their photograph and date of birth.