Description
25min | Credits: 0.50 CAFP, CRCM
Understand the Customer Due Diligence (CDD) rule and the steps banks must take to know their customers. This course explains how to develop customer risk profiles, conduct ongoing monitoring, and identify and verify the beneficial owners of legal entity customers. Gain practical guidance on collecting and updating required information.
Audience: Bank employees whose responsibilities include opening accounts for legal entity customers or conducting customer due diligence.
Learning Objectives
After completing this course, students will be able to:
- Understand the requirements of the CDD Rule, including the development of a customer risk profile
- Understand the requirement to conduct ongoing monitoring, and when enhanced due diligence may be warranted
- Describe a “legal entity customer” under the CDD rule
- Describe the two “prongs” of beneficial ownership under the CDD rule: ownership and control
- Describe when banks are required to collect beneficial ownership information on legal entity customers (e.g., companies)
- Describe what information banks are required to collect, verify, record, and update under the CDD rule
This course is part of the ABA Frontline Compliance program.
Last Reviewed: January 2026