Glossary
CDD (Customer due diligence)
Customer due diligence is the set of measures a firm applies to know who its customer is: identifying and verifying the customer and beneficial owner, understanding the purpose and intended nature of the relationship, and monitoring the relationship on an ongoing basis. Its depth depends on the customer's risk: simplified for low risk, enhanced for high risk.
Why it matters for brokers and payment firms
Monitoring only works against a baseline. The expected turnover, occupation and source of funds captured at onboarding are what make an alert say "unusual for this customer" rather than just "large".