What is Customer Due Diligence (CDD and EDD)?

Definition: Customer due diligence (CDD) is the set of checks an operator carries out to know who the player is and assess their risk level. Enhanced due diligence (EDD) is a deeper level of checks for higher-risk cases.

Standard CDD:

Identity and age verification.
Address verification.
Screening against sanctions lists.
Assigning a risk rating to the account.

EDD may include:

Source of funds and source of wealth documents.
Additional identity documents or video verification.
Manual review and senior sign-off before the account continues.

Common EDD triggers: deposit thresholds, unusual transaction patterns, high-risk payment methods or flags from transaction monitoring.

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Related Terms

Source of Funds / Source of Wealth

Source of funds (SoF) is the origin of the money a player uses for deposits. Source of wealth (SoW) is how the player built up their overall wealth.

Transaction Monitoring

Transaction monitoring is the automated review of player payments and betting activity against rules and thresholds to detect activity that needs a closer look, such as possible money laundering or fraud.

Open Banking

Open banking is a way of sharing bank data and starting payments through secure bank APIs, with the account holder’s consent. In iGaming it is used for account-to-account (A2A) deposits and payouts.

E-wallet

An e-wallet is a digital payment account that stores money or payment credentials and lets a player pay online by logging in to the wallet account.

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