Steps and Objectives of CDD

Steps and Objectives of CDD

The three steps of CDD

CDD consists of three steps:

1. Identifying the client and verifying the client’s identity on the basis of documents, data or information obtained from a reliable and independent source.

2. Determining whether there are any ultimate beneficial owners whose identities need to be verified.

3. Obtaining information on the purpose and intended nature of the business relationship.

The objectives of CDD

The dual objectives of completing CDD are to:

 meet statutory requirements

 know your client and understand your client’s business