Customer Due Diligence (CDD) is the cornerstone of every Anti-Money Laundering (AML) framework. Under the UK Money Laundering Regulations 2017, all regulated businesses — including estate agents, solicitors, accountants, and financial advisers — must verify who their clients are, assess the risks they pose, and monitor transactions over time.
Done correctly, CDD protects both your firm and the wider financial system from being used for money laundering or terrorist financing. Done poorly, it exposes you to regulatory fines, legal action, and reputational damage.
CDD means verifying the identity of customers, understanding the purpose of the business relationship, and assessing the risk of money laundering.
It applies whenever you start a new client relationship, perform an occasional high-value transaction, or suspect that an existing client’s circumstances have changed.
Failing to complete CDD is not optional — if you can’t verify a client, you must not proceed with the transaction.
AML Buddy automates client verification and screening so you never skip a required step. Its digital workflow ensures every new client is verified, risk-scored, and recorded automatically — fully aligned with HMRC and FCA standards.
For most customers, standard due diligence involves:
The level of detail should always reflect the client’s risk level — simple cases require straightforward checks, while complex or higher-risk clients need deeper verification.
AML Buddy lets you send each client a secure AML Link to complete ID and document verification online. The platform validates ID documents, matches facial biometrics, and confirms addresses instantly — producing a regulator-ready report in seconds.
When a client or situation presents higher risk, you must perform Enhanced Due Diligence.
EDD typically applies when:
EDD requires gathering extra evidence of identity, verifying the source of funds and wealth, obtaining senior-management approval, and performing ongoing enhanced monitoring.
AML Buddy automatically detects risk triggers — such as PEP status or high-risk jurisdictions — and prompts the user to collect additional documentation. Built-in workflows guide you through each EDD step and record every action for audit purposes.
Must verify both buyer and seller, confirm the source of funds, and retain documents for five years.
AML Buddy automates identity checks and flags high-risk transactions, keeping every client file HMRC-ready.
Handle high-value property and trust transactions.
AML Buddy simplifies onboarding with digital ID capture, sanctions screening, and a complete audit trail to satisfy SRA and LSAG requirements.
Need to verify investors and monitor large transfers.
AML Buddy enables fast client verification and continuous PEP/sanctions monitoring, ensuring FCA-level compliance with minimal admin.
Verify company ownership, beneficial owners, and client funds.
AML Buddy performs instant KYB checks, cross-references Companies House data, and maintains compliant five-year records.
AML Buddy unifies all these practices in one system: identity verification, PEP/sanctions screening, beneficial-owner mapping, and secure document storage. It continuously re-screens clients and sends reminders for expiring documents — ensuring nothing slips through the cracks.
CDD doesn’t end after onboarding. Firms must monitor client activity and refresh data periodically.
Records must be kept for at least five years and produced promptly during regulatory audits.
Every action inside AML Buddy is time-stamped and archived automatically. Reports, IDs, and correspondence are stored in encrypted UK data centres and easily exported for HMRC or FCA reviews — no manual filing needed.
Customer Due Diligence is not just a legal duty — it’s a trust-building process that protects your business and your clients.
With AML Buddy, firms of any size can achieve enterprise-grade AML compliance without complexity or delay.
AML Buddy — AML compliance, made refreshingly simple.
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