AML - Anti-Money Laundering
Definition
Anti-Money Laundering (AML) is the framework of laws, regulations, and controls designed to prevent the movement of illicit funds through the financial system. It obliges banks to detect, deter, and report suspicious activity by applying rigorous identification, monitoring, and escalation procedures throughout the client lifecycle.
Context
AML provides the regulatory foundation that defines why KYC and CDD exist.
KYC ensures the bank knows who the client is and the purpose of the relationship.
CDD determines how much risk the client presents and how closely they must be monitored.
Together, they operationalise AML obligations within the Client Lifecycle Management (CLM) framework.
Within E-CLM, AML compliance is embedded through rules, workflows, and data controls that govern onboarding, screening, periodic reviews, and exit. AML risk ratings and alerts feed into CNRM analytics to reveal exposure patterns across client networks and geographies.
An effective AML capability depends on high-quality entity data, continuous due diligence, and coordinated responses across compliance, operations, and technology teams—ensuring financial-crime risk is managed as part of integrated client risk governance.
CDD - Customer Due Diligence
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CDD – Customer Due Diligence
Definition
Customer Due Diligence (CDD) is the structured assessment of a client’s risk profile based on verified identity, ownership, activities, and behaviour. It determines the depth of checks and monitoring a bank must apply to manage financial crime, sanctions, and reputational risk in accordance with regulatory standards.
Context
CDD extends beyond KYC. While KYC establishes who the client is and why the relationship exists, CDD determines how much risk that relationship represents and how it should be managed over time. CDD classifies clients into risk tiers (typically Low, Medium, or High), drives the required level of due diligence (Standard or Enhanced), and sets periodic review cycles.
Within E-CLM, CDD is an embedded service that consumes verified client data from Entity Management and applies rule-based assessments to maintain an accurate risk profile throughout the client lifecycle. It provides a direct control linkage between onboarding, review, and offboarding processes.
In CNRM, aggregated CDD outputs inform network-level risk analytics—showing where concentrations or contagion may occur across related clients, geographies, or sectors.