Customer Due Diligence (CDD) is all about figuring out who your customers are. You gather information about them and assess that information to determine their risk level. Some customers will be very run of the mill and low risk, while others may have a much higher risk. And that’s okay. The key is identifying the potential risks and implementing procedures to mitigate those risks. While your Board doesn’t actually do CDD, they need to have a general understanding of CDD and what you do so they can effectively oversee your institution’s BSA/AML Program.
Kevin explains more in the video.
Video Highlights:
- Customer Due Diligence involves gathering detailed information about your customers, developing a customer risk profile and monitoring them for unusual activity.
- Assessing customer risk is important in order to identify high-risk customers who may require more monitoring.
- Understanding expected behavior for each customer helps detect any unusual activity.
Published
2023/11/27
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).
