Client Due Diligence
Client due diligence (CDD) is a comprehensive process businesses undertake to verify the identity, assess the risk profile, and understand the nature of their clients' activities before and during a business relationship. This systematic evaluation helps organizations protect themselves against fraud, money laundering, terrorist financing, and other financial crimes. CDD serves as a critical component of risk management practices, particularly in financial institutions, accounting firms, legal practices, and other regulated sectors.