Customer Due Diligence (CDD) is the control procedure that companies apply while making risk assessments. CDD check, one of the basic requirements of the risk-based AML approach, detects potential customers' risks. Some of the risks firms face are money laundering, terrorist financing, and other financial crimes. CDD procedures have to be applied by organizations under AML liability. Companies that do not implement CDD screening may face penalties. It requires knowing the customers and knowing their activities. Implementing procedures is aimed at financial institutions to detect risks and protect themselves from financial crimes.
There are many reasons, such as these.
Performing a customer due diligence check is one of the most crucial components of any regulation. Financial Institutions are required to verify their clients to avoid financial crime risks. Therefore, it is essential to apply the anti-money laundering CDD process in new business relationships. After checking the person you will have a business relationship with, you should start the business relationship. This eliminates potential risks. Also, it should be performed in case of suspicious transactions.
Some customers or business partnerships pose more financial crime threats for companies. Enhanced Due Diligence (EDD) is the KYC process that enables higher-risk individuals or companies to be examined. Companies take higher measures than customer due Diligence during the enhanced due diligence process. Political Exposed Persons have a high level of risk due to the risk of corruption.
Consequently, CDD screening has become an essential requirement for organizations to protect their business. As factors such as high-risk profiles or criminal threats develop, Client Due Diligence's financial institutions' approaches should be innovative. Qualified specialists should be included in the process to avoid wasting time and resources.
Sanction Scanner allows you to take CDD, EDD, and KYC measures. With the CDD Software solution, you can easily perform customer screening. With our next-generation sanction, pep, and adverse media screening tool, you can comply with AML-CTF regulations. Immediately reduce risks and protect yourself from financial crimes.