When we talk BSA/AML/CFT compliance, there are a lot of acronyms that get tossed around. CIP, CDD, ECDD and CDDBO are just a few and it’s important you don’t mix them up. They each serve a different purpose in your BSA Program. CIP (Customer Identification Program) is about identifying the persons or entities that open accounts at your institution. CDD (Customer Due Diligence) is about understanding your customer and their expected or typical activity. ECCD (Enhanced Customer Due Diligence) is like CDD on steroids and is often triggered for higher risk customers and situations. CDDBO (Customer Due Diligence for Beneficial Owners) differs from CIP in that it seeks to identify the beneficial owners of any legal entity customers.
Kevin explains more in the video.