Implementing CDD can be challenging for businesses due to several factors:
Data Quality: Ensuring the accuracy and reliability of the data collected from customers can be difficult, especially if the information is outdated or incomplete. Regulatory Compliance: Keeping up with constantly changing regulations and ensuring that the CDD processes meet all legal requirements can be complex and resource-intensive. Customer Experience: Striking a balance between thorough due diligence and providing a seamless customer experience is often a challenge. Overly intrusive processes can lead to customer dissatisfaction and loss of business. Technological Integration: Integrating advanced technologies such as artificial intelligence and machine learning to enhance CDD processes can be costly and require significant expertise.