What is Customer Due Diligence？
Synonyms
| Category | English | Chinese | Notes |
|---|---|---|---|
| Formal Term | CDD | 客户尽职调查 | AML (Anti-Money Laundering) Standard |
Definition
Customer Due Diligence (CDD) is the fundamental process of risk identification and identity verification conducted for all customers. It serves as the first line of defense in Anti-Money Laundering (AML) efforts.
Technical & Mechanism Description
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KYC Verification: Know Your Customer identity checks.
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Association Analysis: Linking of Address / IP / Device / Payment Tools.
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Initial Risk Rating: Categorizing customers based on their risk profile upon entry.
Usage Scenarios
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Account Registration: When a user first signs up.
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First Deposit: The initial financial transaction.
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VIP Upgrades: When a user transitions to a higher tier of service or loyalty program.
Risk / Compliance Points
Mandatory Requirement: Compulsory in the majority of legal jurisdictions.