Strengthening Customer Due Diligence on a Strategic Approach to Preventing Money Laundering: A Concept Paper

This study escalates the threat of money laundering and presents significant challenges for financial integrity and national security worldwide.This conceptual paper explores the critical role of Customer Due Diligence (CDD) as a strategic approach to enhancing compliance with anti-money laundering (AML) regulations.Despite the establishment of comprehensive AML frameworks, compliance levels remain alarmingly low, primarily due to factors such as inadequate awareness, insufficient training, and the complex nature of money laundering schemes.To enhance and improve CDD frameworks, the strategies proposed in this concept paper are risk-based approach, financial transaction reporting and role of technology in preventing money laundering.