Customer Due Diligence (CDD), CIP & Beneficial Ownership

Customer Due Diligence (CDD), CIP & Beneficial Ownership is a practical deep dive into how financial institutions identify customers, assess risk, and maintain transparency throughout the customer lifecycle. As Course 2 of 6 in the StudyAML United States Series, it focuses on U.S. regulatory expectations while remaining aligned with international standards. Learners explore how onboarding decisions impact ongoing monitoring, escalation, and regulatory outcomes. Build confidence at the first line of defence. Reduce risk early. Apply judgement where it matters.

20 - 25 minutes

Certificate Included

United States

Description

This self-paced course provides a practical examination of Customer Due Diligence, Customer Identification Program requirements, and Beneficial Ownership obligations within the United States regulatory framework. Designed to be completed in approximately 20 to 25 minutes, the course is suitable for professionals working in compliance, risk, onboarding, operations, and financial crime roles. The course explains how U.S. requirements under FinCEN align with global expectations set by the Financial Action Task Force, while highlighting where domestic rules apply more specifically. Learners will explore how to identify and verify customers, assess customer risk, identify beneficial owners of legal entities, and apply enhanced due diligence for higher-risk relationships, including politically exposed persons. Through realistic onboarding and monitoring scenarios, the course emphasises professional judgement, documentation, escalation, and defensible decision-making. Learners will gain a clear understanding of how CDD operates in practice, how weaknesses in onboarding lead to regulatory exposure, and how effective controls support both regulatory compliance and sound risk management.

What will you learn?

Module 1 – Why Identification and CDD MatterYou will understand why customer identification and due diligence are foundational to AML and CFT frameworks, how they protect institutions and the financial system, and how regulators assess failures at onboarding. The module reinforces risk-based decision-making from the start of the customer relationship.
Module 2 – Customer Identification Program (CIP)You will learn the minimum CIP requirements under U.S. regulations, including required customer information, verification methods, and recordkeeping expectations. The module explains how documentary and non-documentary verification methods are applied in practice and how institutions justify their approach.
Module 3 – CDD Requirements and Enhanced Due DiligenceYou will explore the core components of Customer Due Diligence, how customer risk profiles are built, and when Enhanced Due Diligence is required. The module covers higher-risk customers, including politically exposed persons, and outlines appropriate controls, escalation, and monitoring expectations.
Module 4 – Beneficial Ownership and TransparencyYou will learn how beneficial ownership requirements apply to legal entity customers, including ownership and control concepts. The module explains how institutions identify, verify, and document beneficial owners in line with regulatory and supervisory expectations.
Module 5 – Ongoing Monitoring and Event Driven RefreshYou will understand how customer risk evolves over time, what triggers additional review, and how monitoring supports escalation and suspicious activity reporting. The module reinforces governance, accountability, and documentation.
Module 6 – Red Flags in Customer OnboardingYou will identify common onboarding red flags, understand how to respond proportionately, and learn when and how to escalate concerns. The module reinforces compliance culture and defensible decision-making.