{"id":10754,"date":"2025-12-25T01:10:00","date_gmt":"2025-12-25T01:10:00","guid":{"rendered":"https:\/\/www.amlcc.com\/?p=10754"},"modified":"2026-08-11T16:55:40","modified_gmt":"2026-08-11T16:55:40","slug":"what-is-standard-due-diligence","status":"publish","type":"post","link":"https:\/\/www.amlcc.com\/vc\/what-is-standard-due-diligence\/","title":{"rendered":"What is standard due diligence?"},"content":{"rendered":"\n

What is standard due diligence?<\/h1>\n\n\n
\"Richard<\/div>
Richard Simms<\/span>

Director and Founder of AMLCC and AMLCC Consult<\/h3><\/div><\/div><\/div><\/div>\n\n\n
\"What<\/figure><\/div><\/div>\n\n\n\n
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The term standard due diligence isn’t used in FATF’s Recommendations. FATF asks countries to apply customer due diligence (CDD) on a risk-sensitive basis, rather than creating a separate legal category called ‘standard due diligence.’ Each country then writes that requirement into its own legislation, using its own terminology.<\/p>\n\n\n\n

However, regulatory guidance in many countries uses ‘standard’ or ‘normal’ due diligence as shorthand for the level of customer due diligence (CDD) where the overall risk is neither clearly low (when simplified due diligence may be appropriate) nor clearly high (when enhanced due diligence is needed).<\/p>\n\n\n\n

Deciding on the level of customer due diligence needed is part of taking a risk-based approach<\/a>. You assess the client and the context first, then apply the level of due diligence that matches the risk.<\/p>\n\n\n\n

When standard due diligence applies<\/strong><\/strong><\/h2>\n\n\n\n

For legal, accountancy and property businesses, and for dealers in precious metals and stones (also known as high-value dealers or HVDs), FATF’s Recommendation 10 sets out when you must apply CDD measures. <\/p>\n\n\n\n

Where the risk is assessed as normal, there are circumstances in which standard due diligence will usually apply. When you:<\/p>\n\n\n\n