Customer Due Diligence (CDD) is a fundamental element of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. It is the process by which financial institutions collect relevant information to verify a customer's identity and evaluate the level of risk they present before entering into a business relationship.
Standard CDD vs. Enhanced Due Diligence (EDD)
Standard CDD involves basic identity checks and watchlist screening for low-to-medium risk accounts. If a merchant operates in a high-risk industry or a beneficial owner is a Politically Exposed Person (PEP), the institution must automatically escalate the review to Enhanced Due Diligence (EDD), which requires a far deeper investigation into the source of funds and corporate structures.
Standardizing CDD Outcomes with Onlayer
Manually performing CDD is slow and prone to human error. Onlayer automates and standardizes outcomes, categorizing merchants using custom AI-driven decision rules. Whether the merchant requires standard CDD or complex EDD, Onlayer generates transparent audit logs, real-time scoring, and comprehensive AI summary outputs for every decision.
