Although, the importance of Customer Due Diligence is inexpressibly essential for the financial industry and DNFBPs because in a world without CDD or KYC, criminals/ terrorists or money launderers would create a blunder and demolish the entire mechanism of the business ecosystem. There are numerous benefits of having CDD, but let us have a look at the most prominent ones.
It makes sure that the customer or potential customer is the one he claims to be
It protects the ecosystem and business environment from any sort of fraudulent activities like impersonation or identity fraud
It makes sure that the organization remains compliant with the established laws and regulations of the regions or markets of operations
Businesses can assist law enforcement in a hassle-free and straightforward manner