Customer Due Diligence is an essential aspect to manage your risks effectively and protect the business from potential involvement in financial, terroristic and other criminal activities or being associated with them. CDD process is critical for KYC. For not having a reliable and compliant KYC financial organisations are obliged to pay penalties and ICOs have to return all the received funds (it happened to almost every Chinese ICO
CDD differs a little on a global level , however reasonable steps, which are asked by regulators, stay the same. It involves identifying each customer and understanding their activities. With this information you can form the risk profile for each client.
Enhanced Due Diligence (EDD) is an additional information. It is necessary only for some cases, when data for high-risk customers should be collected. In order to determine what level of due diligence is required you can use customer risk assessments.
We have prepared a checklist to help you improve Customer Due Diligence procedures.