Blog Post: Risk-Tiered Customer Due Diligence: Simplified, Standard, Enhanced and Trigger Events

Customer due diligence works only when the depth of effort is proportional to the risk in front of the analyst, but in practice many programmes drift toward a single uniform process because tiering rules are unwritten or inconsistently applied. The intent is rarely the problem. Where we see CDD programmes lose proportionality is in the absence of a clear, documented trigger framework that moves customers between simplified, standard and enhanced tiers as their risk profile changes.