Definition
Customer Due Diligence (CDD) refers to the risk-based assessment and ongoing monitoring of customers, transactions, and business relationships.
Context
CDD is a core component of anti-money laundering (AML) frameworks and is closely linked to know your customer (KYC) and enhanced due diligence (EDD). It is applied during onboarding and throughout the lifecycle of a business relationship.
Meaning
It ensures that controls and monitoring measures are proportionate to the risk profile of the customer.
Example
Enhanced verification procedures applied to high-risk customers.
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Customer Due Diligence (CDD)", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/customer-due-diligence-cdd/, accessed April 18, 2026.