Certificate in Customer Due Diligence (CDD)

Course details

Customer due diligence (CDD) is the act of performing background checks and other screening on the customer to ensure that they are properly risk-assessed before being onboarded.

CDD is at the heart of Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives. It is designed to help banks and financial institutions prevent financial crimes like money laundering, terrorist financing, human and drug trafficking and fraud.

Customer Due Diligence involves

• Customer Information: To ensure customers are who they say they are, companies collect the customer’s full name, photo identification, address, phone number, email address, occupation, tax identification number and more.
• Business Information: CDD measures should include additional identifying information about the customer’s business model, source of funds and beneficial ownership.
• Customer Risk Profiles/Risk Assessments: Based on the customer’s identity, location and type of business, customers are sorted into different risk levels (usually low, medium and high) to indicate the level of money laundering risk they pose. A customer’s risk profile determines how much due diligence is required. High-risk customers need a more in-depth due diligence process than low-risk customers.
• Ongoing Monitoring: Customer due diligence doesn’t stop after the customer is onboarded. CDD measures should include some sort of ongoing monitoring system and keep an eye on higher-risk customers, suspicious transactions, changing customer profiles, etc.

Why should one take Customer Due Diligence (CDD) certification?
Customer Due Diligence involves the following basic regulatory obligations and all financial institutions requires CDD professionals due to enhanced regulations to address money laundering.

Vskills Certificate in CDD provides a hands-on approach to understand the nuances of Customer Due Diligence as well as understand Enhanced Due Diligence for Client classifications, CDD profiles and document management.

The certification attests to your understanding and applying skills and knowledge in customer due diligence and helps you to stand out amongst your peers to help in gaining better career prospects.

The certification covers

• AML and KYC Basics
• CDD Basics and Relevance
• Enhanced Due Diligence (EDD)
• Client classifications
• CDD profiles
• Document Management

Who will benefit from taking Customer Due Diligence (CDD) certification?
Finance professionals, accounting professionals, managers, students, will benefit immensely by opting for Vskills Certificate in Customer Due Diligence (CDD) to gain an edge in the AML-KYC domain and be noticeable amongst their colleagues as well as make progress in their respective careers.

Students taking the certification also gain by showcasing their understanding of Customer Due Diligence (CDD) and are able to increase their job opportunities.
 
Benefits of Certification

• Government certification
• Certification valid for life
• Lifelong e-learning access
• Free Practice Tests

 
How It Works

1. Select Certification & Register
2. Receive Online e-Learning Access (LMS)
3. Take exam online anywhere, anytime
4. Get certified & Increase Employability

Test Details

• Duration: 60 minutes
• No. of questions: 50
• Maximum marks: 50, Passing marks: 25 (50%).
• There is NO negative marking in this module.
• Online exam.

 
TABLE OF CONTENT

AML and KYC Basics

• What is Money Laundering?
• Process of Money Laundering
• Money Laundering Methods
• Politically Exposed Persons
• Money Laundering – Case Studies
• Know Your Customer (KYC ) Basics
• Difference between AML and KYC
• Prevention of Money Laundering Act, 2002 (PMLA)
• RBI Guidelines regarding AML
• AML-KYC International Legislation and Cooperation
• eKYC

CDD Basics and Relevance

• What is CDD?
• Customer Due Diligence vs. Monitoring
• Customer Due Diligence Basics
• CDD Relevance
• CDD Measures
• Types or Levels of CDD
• When to perform CDD?
• Performing Customer Due Diligence
• CDD Record Keeping
• Third Party CDD
• Ongoing CDD Monitoring

The Risk-based Approach to CDD

• What is Risk?
• What is Customer Risk?
• Potential Risk Treatments
• CDD and Risk based Approach
• Customer Risk Categorization
• Risk Scoring Model
• Customer Risk Rating Best Practice
• Customer Risk Assessment

Identification and Verification

• Verifying a customer
• Customer Acceptance Policy (CAP)
• Customer Identification Requirements Guidelines
• Customer Identification Procedure (CIP)
• Applicable Customer Identification Procedures

CDD Requirements

• CDD Core Requirements
• Customer Due Diligence Requirements
• Verify Customer Identities
• CDD Regulatory Obligations
• Information to be Preserved
• Reporting Requirement under FATCA and CRS
• Secure Information

Customer and the Nature of the Relationship

• Who is a Customer?
• CDD Segmentation
• CDD and Customer Relationship
• Purpose and Nature of the Relationship

Unravelling Ownership Structure or the Beneficial Ownership

• Who is Beneficial Owner
• Why to identify a BO?
• International Initiatives
• International UBO Standards
• The FATF Standard for BO
• Differences Between Legal Persons and Legal Arrangements
• Steps for UBO
• India and Declaration of Significant Beneficial Owner
• The Cascading Test for Legal Persons
• Using Thresholds for BO
• Identification of Beneficial Owners
• New Age BO Identification Procedures

Screening the customer or related parties

• Customer Screening Basics
• Name Screening
• Sanctions Screening
• Related Party

Money Laundering Risk Factors and Risk Ratings

• Money Laundering Risks
• Money Laundering Risk Assessment
• Risk Rating

Enhanced Due Diligence (EDD)

• EDD Basics
• The need for EDD
• Factors for EDD
• Enhanced Due Diligence Measures
• Beneficial Ownership and EDD Requirements
• Conducting EDD ( Enhanced Due Diligence)

CDD Profiles

• Customer CDD Profile Basics
• Customer Risk Profile
• Risk-Based Procedures
• Higher Risk Profile Customers

CDD Record Management

• What is CDD Record-Keeping?
• FATF Recommendation 11 – Record‑keeping
• Which CDD Records to Keep?
• CDD and Customer Identification Records

Updated on 14 June, 2024