GlossaryEN1 min readUpdated: Jun 26, 2026
Customer Due Diligence
Customer Due Diligence (CDD) is the process by which freight forwarders, customs brokers, and financial service providers systematically identify their business partners, verify their identity and beneficial ownership, and assess their risk profile before entering into or continuing a business relationship.
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Source: https://www.investopedia.com/terms/c/customer-due-diligence.asp
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Customer Due Diligence (CDD) is the process by which freight forwarders, customs brokers, and financial service providers systematically identify their business partners, verify their identity and beneficial ownership, and assess their risk profile before entering into or continuing a business relationship. CDD forms the backbone of AML/CFT compliance programmes (Anti-Money Laundering / Countering the Financing of Terrorism) and covers document verification, screening against sanctions and PEP lists, business purpose analysis, and ongoing transaction monitoring. The depth of scrutiny is risk-based: high-risk counterparties trigger Enhanced Due Diligence (EDD), which requires more thorough documentation and more frequent review.
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