Customer Due Diligence (CDD) is the process to establish the identity and risk profile of your customers. Crypto, DeFi and Web 3.0 companies often deal with international funds transfers on the blockchain as a core part of their business. Hence, they must have a robust framework for running CDD checks on their private and corporate clients. The purpose of doing customer due diligence is to reduce the instances of fraud, money laundering and other risky misuses of your products and services by malicious customers. It keeps the reputation of your business clean and the revenue stream of your operations profitable. Failure to have appropriate customer due diligence processes can result in unexpected and potentially massive setbacks to your business. It can affect the reputation of your brand in the long-term, creating even more potential losses in the future in terms of opportunity costs.