BSA for the Board: What’s the Purpose of CDD?

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