Customer Due Diligence Checklist- SignalX
Customer Due Diligence (CDD) is a regulatory process used by financial institutions and regulated businesses to identify and verify customers, understand the nature and purpose of their relationship, and assess the level of risk they may pose.
CDD helps organizations ensure they are dealing with legitimate customers and is a key requirement under Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Why is the Customer Due Diligence Checklist crucial?
The Customer Due Diligence (CDD) Checklist is crucial because it helps organizations verify customer identities, assess risk, and prevent financial crimes such as money laundering and fraud. It ensures compliance with regulatory requirements, supports informed risk-based decision-making, and protects the business from legal, financial, and reputational damage. By standardizing checks, it also improves consistency, transparency, and audit readiness across customer onboarding and ongoing monitoring processes.
A well-structured Customer Due Diligence (CDD) Checklist helps organizations consistently assess customer risk, verify identities, and meet regulatory requirements with confidence. By standardizing the CDD process, it reduces gaps, improves decision-making, and supports safer customer onboarding while protecting the business from financial crime and compliance failures.
As regulatory expectations and risk profiles continue to evolve, customer due diligence should be viewed as an ongoing responsibility rather than a one-time check. Continuous monitoring, periodic reviews, and timely updates ensure customers remain aligned with your risk appetite and compliance standards over time.
Areas we have covered in our Customer Due Diligence Checklist
Our checklist is designed to guide you through the Customer Due Diligence process. It covers various areas including:
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Customer Identification & KYC
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Customer Risk Profiling
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Sanctions, Watchlists & Adverse Media
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Ongoing Monitoring & Enhanced Due Diligence
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Final Review & Next Steps
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Source of Funds & Source of Wealth
