Regulation & Compliance
Customer Due Diligence
Definition
What is Customer Due Diligence?
The process of identifying customers, understanding their activity, and assessing risk.
Example in practice
How This Looks in Practice
The broker verifies identity and intended investmentAn asset or commitment of money made with the expectation of future income, growth, or both. activity.
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Related Terms
Regulation & Compliance
Fiduciary Duty
A legal or ethical duty to act loyally and carefully in another person's best interest.
Regulation & ComplianceSuitability
The requirement or process of determining whether an investment fits a client's circumstances and objectives.
Regulation & ComplianceBest-Interest Standard
A duty to place the client's interests ahead of the provider's when making a recommendation.
Nigeria InvestingNigerian Exchange
Nigeria's principal securities exchange, where listed shares, bonds, ETFs, and other instruments trade.