What are the types of CDD?
Based on the risk profiling of the customers, the Bank adopts following 3 types of CDD.
1. Simplified CDD
2. Normal CDD
3. Enhanced CDD
1. Simplified Customer Due Diligence
Simplified CDD is the lowest level of due diligence that can be completed on a customer. This is
implied to the customer with low risk category. The customer can be categorized as low risk in
the risk assessment of AML/CFT IT system conducted as per the AML Act, AML Rules and
NRB Directive are met.
2. Normal Customer Due Diligence
Normal CDD is implied to the customers in general or in medium risk or those who do not fall
under high risk or low risk. The AML/CFT IT System of the Bank provides workflow for
entering, storing, updating, and retrieval of the normal CDD information.
3. Enhanced Customer Due Diligence
Enhanced CDD shall be applied to the customers categorized as high risk. ECDD includes higher
degree of CDD that requires collection of additional information and documents as well as
surveillance in every stage of transaction. The Bank aims to reach to the reality of the customer
and transactions through ECDD process. Certain customer or transactions may need special and
extended attention of the bank. Hence, a rigorous and robust additional KYC/CDD process shall
be applied for ECDD customer or transactions with additional reasonable measures to verify and
validate the customer's identity, understand and test the customers profile, business and account
activity as well as risk associated. Prior approval shall be taken from management in account
opening and high value transaction for the customer through the quickest means for high-risk
category.
