Customer Due Diligence for Banks, 2001

The guidance paper 'Customer Due Diligence for Banks', also called Basel CDD Paper, was issued by the Basel Committee on Banking Supervision (BCBS) in October 2001.

In this paper, the BCBS says that certain key ele­ments should be included by banks in the design of 'know your customer' (KYC) programs. Such elements should start from the banks' risk management and control procedures and should include (1) customer acceptance policy; (2) customer identification; (3) ongoing monitor­ing of high risk accounts; and (4) risk manage­ment.