Customer Due Diligence (CDD) is a process used by businesses to gather and assess information about their customers. This helps organizations understand who they are dealing with and the potential risks involved in the relationship. CDD is essential for preventing fraud, money laundering, and other illegal activities. The CDD process typically involves verifying a customer's identity, understanding the nature of their business, and assessing the risk they may pose. This information allows companies to make informed decisions and comply with regulations, ensuring a safer and more secure business environment.