What is customer due diligence (CDD)? The checks behind every account
By SendPay Business · · 2 min read
Customer due diligence, or CDD, is the set of checks a regulated firm runs to know who its customer is and what they plan to do with the account. It's a core part of anti-money laundering rules, including the UK's Money Laundering Regulations 2017.
What CDD usually covers
- Confirming the customer's identity, such as with an ID document and address check.
- For businesses, confirming the company and who ultimately owns or controls it.
- Understanding the purpose of the account and the expected kind of activity.
- Keeping an eye on the account over time to make sure activity still fits.
Simplified, standard and enhanced
Firms can apply lighter checks where the risk is low and must apply enhanced due diligence where it's higher, such as for politically exposed persons or customers linked to high-risk countries.
Why it doesn't stop at sign-up
CDD is ongoing. Firms review customers when their details or activity change, and transaction monitoring flags payments that don't match what the customer said they'd do.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners who run the required checks.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.