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Guide to Due Diligence in FIs, CDD, EDD and SDD, Digital banking services, Digital verification of Customers
Updated on Sep, 2026
Finance and Accounting, Compliance, Risk Management
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Different kinds of due diligence are dealt with in this course, including its need, how it applies in different financial institutions, and the role it plays in KYC (Know Your Customer) and generating Suspicious Activity Reports (SARs). Besides, we will look at how the traditional bank services have changed significantly through the evolution of due diligence, including the digitalization era, providing practical tips and guidance for compliance and due diligence practitioners.
Introduction to Due Diligence
Definition and Importance of Due Diligence
Understanding due diligence and its role in financial institutions.
The necessity of due diligence for risk management and regulatory compliance.
Types of Due Diligence
Customer Due Diligence (CDD)
Enhanced Due Diligence (EDD)
Simplified Due Diligence (SDD)
Necessity and Usage of Due Diligence
Necessity of Due Diligence
Legal and regulatory requirements
Risk assessment and management
Prevention of financial crimes (money laundering, fraud, terrorism financing)
Usage Under Different Financial Institutions
Application in banks, investment firms, insurance companies and fintech startups.
Specific requirements for each type of financial institution.
Due Diligence and KYC
Due Diligence in KYC
Role of due diligence in verifying customer identity and assessing risks.
How due diligence supports compliance with KYC regulations.
Raising Suspicious Activity Reports (SARs)
How due diligence leads to the identification of suspicious activities.
Process of filing SARs and its importance in combating financial crimes.
Conducting Due Diligence
Who Conducts Due Diligence?
Roles and responsibilities of compliance officers, due diligence officers, and other relevant personnel.
Coordination between different departments.
Goals Behind Due Diligence
Identifying and mitigating risks.
Ensuring regulatory compliance.
Protecting the integrity and reputation of the financial institution.
Information Collection During Due Diligence
Information Obtained During Due Diligence
Customer identification and verification (documents, data sources).
Financial background and transaction history.
Purpose and nature of the business relationship.
Due Diligence in Traditional vs. Digital Banking
Due Diligence in Traditional Banking Services
Procedures and best practices for face-to-face customer interactions.
Documentation and verification processes.
Due Diligence in the Digital Era
Challenges and opportunities in digital due diligence.
Use of technology and digital tools for remote customer verification.
Effective Digital Due Diligence
Strategies for conducting due diligence without physical presence.
Ensuring accuracy and compliance in a digital environment.
Improving the Due Diligence Framework
Improvements in Current Due Diligence Framework
Identifying gaps and challenges in existing practices.
Recommendations for enhancing the effectiveness of due diligence processes.
Insights for Compliance Officers and Due Diligence Officers
Best practices and practical tips for conducting efficient due diligence.
Staying updated with regulatory changes and technological advancements.
Summarizing Key Takeaways
Recap of the critical aspects of due diligence.
Emphasizing the importance of continuous improvement and vigilance.
Final Thoughts and Next Steps
Encouraging ongoing learning and professional development.
Resources for further reading and skill enhancement.
No Prerequisites required.
Check out the detailed breakdown of what’s inside the course
I am a Compliance Expert who look after ML/TF/PF. I also drafts AML/CFT/CPF related policies and guidelines and provide trainings related to it. I have a great experience related to AML/CFT as i have helped many organizations developing AML/CFT department. As a AML consultant I have provided many services related to AML/CFT/CPF globally
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