Encyclopedia Archive

Custodians

Understanding custodians in traditional finance Wondering what are custodians? A custodian, within the domain of traditional finance, is a financial services provider, often a large bank or financial institution, tasked with holding and safeguarding assets on behalf of clients. This role extends to keeping customers’ securities, cash, bonds, stock and other financial instruments, in electronic

Customer Due Diligence (CDD)

Customer Due Diligence or ‘CDD’ is a process to assess all of the risks associated with a client or relationship, including KYC, and that requires that the overall client conduct, and transactions are assessed to determine if this is unusual and reportable. CDD requires that obliged entities assess the risks before entering into a relationship,