Banking Exam Question - What is Customer Due Diligence in Banking System? Explain

Introduction - Customer Due Diligence (CDD)

Retention that bank and financial institutions should obtain information about their customer is known as Customer Due Diligence. This is more formatted form than KYC.

• Nepal Nation Bank No Directions According to 19 it has been arranged.
• CDD is more than know your customer
• It's main purpose is identifying the customer and verifying the customer.

Process of CDD:

1. Identification
2. Verification
3. Acceptance

The key things to be included in banks and financial institutions should be included in customer identification methods:

• To identify customer and client's beneficiaries
• To collect necessary information about customer and client's beneficiaries and to prepare customer's risk details according to the requirement
• To apply new customer acceptance policy
• Regularly updating the information and details of the customer's customer and customer
• Monitoring customer's details regularly
• Based on the risk, addicted to developing low risk and high risk customer identification method.