Customer due diligence (CDD)

Customer due diligence (CDD) is a central pillar of the anti-money laundering (AML) and counter-terrorist financing (CTF) regime: the requirements for CDD underpin the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended.

You must conduct CDD on customers who instruct you in relation to regulated activities. There is no obligation to conduct CDD on customers who instruct you in relation to non-regulated activities. For more information, see Practice Note: Money Laundering Regulations 2017—scope and application.

What is CDD?

The component parts of CDD are:

•
identifying any customer, unless the identity of that customer is already known to you and has been verified by you
•
verifying that identity unless the customer's identity has already been verified by you, and
•
assessing, and where appropriate obtaining information on, the purpose and intended nature of the business relationship or occasional transaction

See further Practice Note: Money Laundering Regulations 2017—customer due diligence.

When is CDD required?

You must apply CDD measures when you:

•
establish a business relationship
•
carry out an occasional transaction:
1. ◦
  that

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