{"id":17881,"date":"2026-10-11T01:36:36","date_gmt":"2026-10-10T23:36:36","guid":{"rendered":"https:\/\/paucitas.com\/?page_id=17881"},"modified":"2026-10-14T05:49:01","modified_gmt":"2026-10-14T03:49:01","slug":"customer-due-diligence-cdd","status":"publish","type":"page","link":"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/customer-due-diligence-cdd\/","title":{"rendered":"Customer due diligence (CDD)"},"content":{"rendered":"<style>.pterm{max-width:880px;margin:0 auto;font-family:inherit;padding-top:30px;}.pterm-hero{background:linear-gradient(135deg,#1a1a2e,#2d2d4a);border-radius:18px;padding:30px 34px;margin-bottom:28px;display:flex;align-items:center;gap:18px;flex-wrap:wrap;}.pterm-hero .ph-ico{width:56px;height:56px;border-radius:13px;background:rgba(245,135,31,.16);display:flex;align-items:center;justify-content:center;flex-shrink:0;}.pterm-hero h1{color:#fff;font-size:1.9em;margin:0;line-height:1.2;}.pterm-block{margin-bottom:24px;}.pterm-block h2{color:#1a1a2e;font-size:1.25em;margin:0 0 10px;}.pterm-def{background:#fff;border-left:4px solid #f5871f;border-radius:0 12px 12px 0;padding:18px 22px;color:#444;line-height:1.7;box-shadow:0 2px 10px rgba(0,0,0,.04);}.pterm-p{color:#444;line-height:1.7;margin:0 0 14px;}.pterm-ex{background:#fff7ef;border-radius:12px;padding:18px 22px;color:#5a4630;line-height:1.7;}.pterm-ex .lbl{display:inline-block;font-size:.72em;font-weight:700;letter-spacing:.08em;text-transform:uppercase;color:#f5871f;margin-bottom:6px;}.pterm-see{background:#fff;border:1px solid #eee;border-radius:12px;padding:16px 20px;margin-top:30px;}.pterm-see .lbl{font-weight:700;color:#1a1a2e;margin-bottom:6px;display:block;}.pterm-see a{color:#f5871f;text-decoration:none;font-weight:600;}.pterm a{color:#f5871f;font-weight:600;}<\/style>\n<p><a class=\"pterm-back\" style=\"display: inline-flex; align-items: center; gap: 8px; margin: 0 0 18px; padding: 9px 16px; background: #fff7ee; border: 1px solid #f3d9b8; border-radius: 999px; color: #e08a1e; font-weight: 600; text-decoration: none;\" href=\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/\"><span style=\"font-size: 18px; line-height: 1;\">\u2190<\/span>Back to Crypto assets and origin<\/a><\/p>\n<div class=\"pterm\">\n<div class=\"pterm-hero\">\n<div class=\"ph-ico\"><\/div>\n<h1>Customer due diligence (CDD)<\/h1>\n<\/div>\n<div class=\"pterm-block\">\n<h2>In short<\/h2>\n<div class=\"pterm-def\">Customer due diligence (CDD) is the review an institution must carry out on a client under the <a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2017\/692\/contents\" target=\"_blank\" rel=\"noopener\">Money Laundering Regulations 2017<\/a>, the UK anti-money laundering rules.<\/div>\n<\/div>\n<div class=\"pterm-block\">\n<h2>What does this mean if you hold crypto?<\/h2>\n<p class=\"pterm-p\">The institution establishes who the client is, verifies that identity, identifies the ultimate beneficial owner, looks at the purpose of the relationship and then keeps an eye on the transactions.<\/p>\n<p class=\"pterm-p\">For you as a client, customer due diligence means you may get questions about who you are and where your money comes from, even if you have been a client for years. With money from crypto, the question is often how the crypto was acquired. The better you can substantiate that, the sooner the review is complete.<\/p>\n<\/div>\n<div class=\"pterm-block\">\n<div class=\"pterm-ex\">\n<span class=\"lbl\">Practical example<\/span><\/p>\n<div>An entrepreneur receives a large transfer from an exchange into the business account. The bank starts a customer due diligence review and asks about the origin. With a report showing the original investment, the growth of the assets and the sale on the blockchain, the bank can complete the review.<\/div>\n<\/div>\n<\/div>\n<div class=\"pterm-block\">\n<h2>More about customer due diligence (CDD)<\/h2>\n<details style=\"margin:0 0 10px;border:1px solid #e6d9c8;border-radius:8px;padding:12px 16px;background:#fffaf4\">\n<summary style=\"cursor:pointer;font-weight:600\">What is CDD?<\/summary>\n<p class=\"pterm-p\">CDD stands for customer due diligence. It is the review that banks, solicitors, estate agents, cryptoasset firms and other businesses covered by the Money Laundering Regulations 2017 must carry out on their clients: who is the client, who is the ultimate beneficial owner, what is the purpose of the relationship and do the transactions fit it.<\/p>\n<\/details>\n<details style=\"margin:0 0 10px;border:1px solid #e6d9c8;border-radius:8px;padding:12px 16px;background:#fffaf4\">\n<summary style=\"cursor:pointer;font-weight:600\">What is the difference between KYC and CDD?<\/summary>\n<p class=\"pterm-p\">KYC, know your customer, is establishing and verifying the identity of the client. CDD is broader: besides identity, the institution looks at the purpose of the relationship, the ultimate beneficial owner and the origin of money, and it keeps monitoring transactions.<\/p>\n<\/details>\n<details style=\"margin:0 0 10px;border:1px solid #e6d9c8;border-radius:8px;padding:12px 16px;background:#fffaf4\">\n<summary style=\"cursor:pointer;font-weight:600\">When does a bank carry out customer due diligence?<\/summary>\n<p class=\"pterm-p\">A bank carries out customer due diligence when entering into the relationship, for special or large transactions and when there is doubt about information provided earlier. For many banks, money from crypto is a reason to ask about the origin again.<\/p>\n<\/details>\n<details style=\"margin:0 0 10px;border:1px solid #e6d9c8;border-radius:8px;padding:12px 16px;background:#fffaf4\">\n<summary style=\"cursor:pointer;font-weight:600\">How can Paucitas help with customer due diligence involving crypto?<\/summary>\n<p class=\"pterm-p\">Paucitas documents the origin of crypto assets by linking the transactions on the blockchain to your documents. The report shows in plain language how the assets came about, so that the bank or solicitor can complete the customer due diligence.<\/p>\n<\/details>\n<\/div>\n<div class=\"pterm-block\">\n<div class=\"pterm-src\" style=\"background: #f4f6fb; border-radius: 12px; padding: 18px 22px; color: #3a4152; line-height: 1.7;\"><span class=\"lbl\" style=\"display: inline-block; font-size: .72em; font-weight: bold; letter-spacing: .08em; text-transform: uppercase; color: #5a6b8c;\">Source<\/span><span style=\"display: block; margin-top: 8px;\">The legal basis for customer due diligence in the United Kingdom: <a href=\"https:\/\/www.legislation.gov.uk\/uksi\/2017\/692\/contents\" target=\"_blank\" rel=\"noopener\">The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017<\/a>.<\/span><\/div>\n<\/div>\n<div class=\"pterm-block\">\n<p class=\"pterm-p\">Would you like to know what this means for your own situation? Paucitas will look at it with you, free of obligation: ring us on <a href=\"tel:+31202445774\">+31 20 244 5774<\/a>, day or night, or <a href=\"https:\/\/paucitas.com\/en\/contact-us\/\">get in touch<\/a>.<\/p>\n<\/div>\n<div class=\"pterm-see\"><span class=\"lbl\">See also<\/span><\/p>\n<div><a href=\"https:\/\/paucitas.com\/en\/glossary\/technical-terms\/kyc-and-aml\/\">KYC and AML<\/a>, <a href=\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/origin-of-assets\/\">Origin of assets<\/a>, <a href=\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/asset-verification\/\">Asset verification<\/a>, <a href=\"https:\/\/paucitas.com\/en\/glossary\/technical-terms\/money-laundering\/\">Money laundering<\/a>.<\/div>\n<div><span class=\"lbl\">Related topic<\/span> <a href=\"https:\/\/paucitas.com\/en\/topics\/proving-the-origin-of-assets\/\">Proving source of funds<\/a><\/div>\n<\/div>\n<\/div>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"DefinedTerm\",\"@id\":\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/customer-due-diligence-cdd\/#term\",\"name\":\"Customer due diligence (CDD)\",\"alternateName\":[\"CDD\",\"client due diligence\",\"customer due diligence check\"],\"description\":\"Customer due diligence (CDD) is the review an institution must carry out on a client under the Money Laundering Regulations 2017, the UK anti-money laundering rules.\",\"inDefinedTermSet\":\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/#set\",\"url\":\"https:\/\/paucitas.com\/en\/glossary\/crypto-origin\/customer-due-diligence-cdd\/\"},{\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is CDD?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"CDD stands for customer due diligence. 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border-left: 4px solid #F59024; border-radius: 10px; padding: 16px 20px; margin: 28px 0;\"><strong>Related topic<\/strong> Read how Paucitas applies this in practice on the page <a href=\"https:\/\/paucitas.com\/en\/topics\/proving-the-origin-of-assets\/\">Proving source of funds<\/a>.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u2190Back to Crypto assets and origin Customer due diligence (CDD) In short Customer due diligence (CDD) is the review an institution must carry out on [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"parent":8857,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-17881","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/pages\/17881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/comments?post=17881"}],"version-history":[{"count":4,"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/pages\/17881\/revisions"}],"predecessor-version":[{"id":19060,"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/pages\/17881\/revisions\/19060"}],"up":[{"embeddable":true,"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/pages\/8857"}],"wp:attachment":[{"href":"https:\/\/paucitas.com\/en\/wp-json\/wp\/v2\/media?parent=17881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}