The process of verifying a customer’s identity and assessing the risk they pose. CDD involves obtaining identification (e.g. name, address, ID documents), checking that documents are genuine, and evaluating the customer’s profile (e.g. source of funds, expected trading activity). CDD is a core part of KYC/AML compliance: brokers establish a “risk profile” for each client and use CDD to catch fraud or money laundering schemes before and after account opening.

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