What is ongoing due diligence (ODD)?
Ongoing due diligence refers to the ongoing analysis of customers so that banks and financial institutions can better understand customer relationships, their transactions, and the nature of their business.
It helps to identify, mitigate, and manage the risk of money laundering or terrorism financing. Alongside this, ongoing due diligence is also used to continually ensure that a customer’s risk profile, business and source of funds is in keeping with the bank’s own risk levels.
Ongoing due diligence is a key part of effective KYC procedures and compliance obligations.
For more information, see Customer Due Diligence (CDD).
