CDD

What Does CDD Mean?

CDD means "Customer Due Diligence." In the context of finance and banking, the abbreviation CDD stands for "Customer Due Diligence". It is a process through which relevant information about a customer is collected and evaluated for any potential risk for the organization or for possible illegal activities.

CDD is an aspect of the broader "Know Your Customer" (KYC) procedures. It involves assessing the risk profile of customers, understanding their business or transaction patterns, and ensuring that the services they're using are appropriate given that understanding.

At a basic level, CDD might just involve confirming a customer's identity and assessing their risk level. Enhanced Due Diligence (EDD) might be applied for higher-risk customers, which would involve deeper research into their background, the nature of their business activities, and ongoing monitoring of their transactions. Specific practices for CDD can vary depending on the country and the nature of the business.

"Customer Due Diligence" is often abbreviated further to "Due Diligence" (DD).

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Image for CDD

When I write CDD, I mean this:

"Customer Due Diligence"

Summary of Key Points

"Customer Due Diligence" is the most common definition for CDD on Snapchat, WhatsApp, Facebook, Twitter, Instagram, and TikTok.

CDD
Definition:	Customer Due Diligence
Type:	Abbreviation
Guessability:	5: Extremely difficult to guess
Typical Users:	Specialists

An Academic Look at KYC

KYC is classified as an initialism abbreviation, as it is pronounced one letter at a time. Other examples of initialisms are:

• FBI ("Federal Bureau of Investigation.")
• CEO ("Chief Executive Officer.")

Initialisms are different to acronyms, which are abbreviations spoken as words. For example:

• GOAT ("Greatest Of All Time.")
• NATO ("North Atlantic Treaty Organization.")

Example of CDD Used in a Text