AML (Anti-Money Laundering) vs Customer Due Diligence (CDD)
What each means, how they relate, and when to use which.CDD is a core process within AML. AML (Anti-Money-Laundering) is the entire regime for stopping illicit funds; customer due diligence is the part that identifies and risk-assesses customers and monitors their activity. AML is the goal and framework; CDD is one of the main tools that delivers it.
AML is the set of rules and checks gambling operators use to stop criminals from disguising illegal money as legitimate betting funds.
Use it when Use AML for the overall anti-money-laundering framework.
Full definition of AML (Anti-Money Laundering) →The set of identity, verification and risk-assessment checks a gambling operator performs to understand who a customer is before and during a business relationship.
Use it when Use CDD for the customer-identification and risk-monitoring process within it.
Full definition of Customer Due Diligence (CDD) →The key distinction
- AML is the whole regime; CDD is a process inside it.
- AML also covers transaction monitoring, suspicious-activity reporting and governance, beyond CDD's customer-identification focus.
- CDD scales into enhanced due diligence for higher-risk customers.
Common questions
What's the difference between AML (Anti-Money Laundering) and Customer Due Diligence (CDD)?
CDD is a core process within AML. AML (Anti-Money-Laundering) is the entire regime for stopping illicit funds; customer due diligence is the part that identifies and risk-assesses customers and monitors their activity. AML is the goal and framework; CDD is one of the main tools that delivers it.
What is AML (Anti-Money Laundering)?
AML is the set of rules and checks gambling operators use to stop criminals from disguising illegal money as legitimate betting funds.
What is Customer Due Diligence (CDD)?
The set of identity, verification and risk-assessment checks a gambling operator performs to understand who a customer is before and during a business relationship.
More term comparisons
Understanding, not advice. This explains how two terms differ so you can read the industry clearly. Nothing here treats gambling as a way to make money; the maths favours the house. 18+.