What is Customer Due Diligence (CDD)?
Customer Due Diligence is a critical process for businesses, especially in regulated sectors like property, to prevent involvement in illicit activities such as money laundering and terrorist financing. It involves taking steps to identify your customers (both tenants and landlords) and verifying their identity on the basis of documents, data, or information obtained from a reliable and independent source.
Effective CDD helps you:
- Understand your customers and their financial dealings.
- Assess the risk they may pose to your business.
- Comply with legal requirements under the UK Money Laundering Regulations.
- Protect your business from reputational damage and financial penalties.