Is CDD the same as AML?
Customer due diligence and anti-money laundering (AML) are often viewed as similar.
CDD is a specific part of the broader AML framework.
AML consists of a wide range of processes, such as conducting enterprise-wide risk assessments, adopting internal AML policies, procedures, and controls, conducting CDD, etc.
On the other hand, CDD involves a specific range of activities concerning verifying clients’ identities, assessing their risk profiles, and monitoring transactions to detect suspicious activity. To conclude, CDD and AML are related yet different terms.