---
title: BSA/AML/CFT Programs & Customer Due Diligence
description: Learn about the key components of Customer Due Diligence (CDD) in BSA/AML/CFT programs and how to implement effective risk-based procedures in financial institutions.
---

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# [BSA/AML/CFT Programs & Customer Due Diligence](https://blog.bankerscompliance.com/en/bsa/aml/cft-programs-customer-due-diligence)

 Written by [Kevin Edwards](https://blog.bankerscompliance.com/en/author/kevin-edwards) | Jun 10, 2025 2:52:07 PM

Financial institutions are required to develop and implement Customer Due Diligence ([CDD](https://www.fincen.gov/resources/statutes-and-regulations/cdd-final-rule)) policies and procedures and CDD is one of the pillars of your overall BSA/AML/CFT program. When it comes down to it though, there isn’t a lot of guidance as to what that all entails. This is partly because every institution is different and has different risk. At a minimum, [31 CFR 1020.210(b)(5)](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-X/part-1020) states a bank must implement*…risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to: *

1. * **Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and,*
2. * **Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. …customer information shall include information regarding the beneficial owners of legal entity customers (as defined in § 1010.230 of this chapter)…*

So, what might this look like in practice?

Kevin discussed this during the April meeting of our [AML/CFT Membership Group](https://store.bankerscompliance.com/#/myproducts/product/5df3602d-33a0-405f-bdf1-cb2a738b5b94?searchFilter.keyword=). If you are looking to deep dive into complex BSA/AML/CFT topics and ensure ongoing compliance for your institution, this group is for you! We’d love to have you join us!

 

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Published  
2025/06/10

 

[View full post](https://blog.bankerscompliance.com/en/bsa/aml/cft-programs-customer-due-diligence)

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