Customer Due Diligence

Definition ∞ Customer Due Diligence (CDD) refers to the procedures financial institutions and cryptocurrency platforms undertake to verify the identity of their clients and assess potential risks. These measures are critical for preventing financial crimes, including money laundering and terrorist financing, by gathering and analyzing relevant customer information. CDD ensures compliance with anti-money laundering (AML) regulations globally.
Context ∞ The implementation and enhancement of Customer Due Diligence processes are regularly discussed in the context of global financial regulations and the cryptocurrency industry’s efforts to achieve mainstream acceptance. News often covers regulatory updates and technological advancements aimed at improving the efficiency and effectiveness of CDD within digital asset services. This remains a crucial aspect of regulatory compliance.

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→VASP Obligations

→CFT Measures

→Transaction Monitoring

FATF Reinforces Global AML/CFT Standards for Crypto Exchanges

Cryptocurrency exchanges must fortify AML/CFT frameworks, integrating enhanced CDD, RBA, and robust transaction monitoring to align with evolving global standards.

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→Client Fund Segregation

→Financial Services Act

→Monetary Authority

Singapore Regulator Mandates Licensing for All Cross-Border Digital Asset Services

Firms must immediately integrate global operations into the domestic DTSP licensing framework to mitigate criminal penalties and arbitrage risk by June 30.

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→Cross-Border Data Sharing

→Taxpayer Identification Number

→Tax Residency Data

OECD Finalizes Global Crypto Reporting Framework for Tax Transparency

Global service providers must immediately update KYC/AML and data systems to capture customer tax residency and transaction data for the 2026 reporting mandate.

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→Anti-Money Laundering

→Illicit Finance Prevention

→Digital Asset Policy

Treasury Launches Rulemaking on Stablecoin AML and Sanctions Compliance Mandates

The Treasury ANPRM mandates Payment Stablecoin Issuers detail technical capabilities for sanctions compliance, fundamentally altering operational risk architecture.

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→Financial Services Markets Act

→Licensing Deadline

→Tokenized Products

Singapore Regulator Mandates Licensing for Offshore Digital Asset Service Providers

The MAS finalized its DTSP regime, eliminating regulatory arbitrage by requiring licensing for entities serving foreign clients from a Singapore base by June 2025.

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→Self-Custodial Wallets

→AMLA Supervision

→High-Risk Financial Institutions

EU Parliament Finalizes AML Package Mandating Crypto Wallet Ban and KYC

CASPs must integrate bank-level AML/KYC for transactions exceeding €1,000 and cease offering anonymous wallets, fundamentally altering the EU's compliance architecture.

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→Customer Due Diligence

→CASP Regulation

→Digital Asset Risk

European Union Parliament Approves Sweeping New Crypto Anti-Money Laundering Rules

CASPs must immediately update their compliance architecture to align with banking-level AML standards, prohibiting anonymous accounts and enhancing CDD.

→European Union Regulation

→Cross-Border Transfers

→Counter-Terrorist Financing

European Union Finalizes Landmark Anti-Money Laundering Rules for Digital Assets

CASPs must immediately align compliance frameworks with bank-level AML standards, prohibiting anonymous accounts by 2027.

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→Sanctions Compliance

→OFAC Screening

→Legal Precedent

Federal Lawsuit Accuses Binance of Enabling Hamas Sanctions Violations

This new civil action intensifies the regulatory imperative for all VASPs to immediately fortify sanctions screening protocols and historical transaction review.

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→CASP Compliance Framework

→Crypto-Asset Reporting

→Standardized Reporting Templates

European Union Mandates Crypto Firms Report Customer Holdings for Tax Transparency

DAC8 expansion mandates CASPs architect new, standardized reporting modules to facilitate automatic cross-border tax information exchange across the EU bloc.