Simplified Due Diligence (SDD)

What is Simplified Due Diligence?

Simplified Due Diligence (SDD) is the lightest of the standard due diligence tiers used in KYC and AML programs — sitting below Standard and Enhanced Due Diligence. It applies where a risk assessment has determined a customer or business relationship presents a lower money-laundering or fraud risk, allowing for reduced (though never eliminated) verification steps while still meeting regulatory requirements.

When SDD Applies

Whether SDD is permitted, and what it requires, depends on the regulator and risk category involved — it is generally not a default, but a status assigned after an initial risk assessment. Businesses should not apply SDD as a shortcut without first documenting why a customer or relationship qualifies as lower-risk.

How It Compares

SDD sits alongside our Enhanced Due Diligence service (for higher-risk relationships) and our general AML Compliance and Anti-Money Laundering services. Stodacom can help determine which tier is appropriate for a given customer or relationship, and carry out the corresponding verification.