Due Diligence (DD) is the general, oerall process of conducting a thorough investigation and assessment of an individual, entity or transaction to evaluate potential risks, ensure regulatory compliance and support informed decision-making. It is a broad term that applies across various industries and business activities, including mergers and acquisitions, legal compliance and financial crime prevention.

Unlike Customer Due Diligence (CDD) which specifically refers to verifying customer identities and assessing their risk profiles within Know Your Customer (KYC) procedures, Due Diligence (DD) encompasses a wider range of risk assessments, including vendors, business partners, investments and third-party relationships.

See definition for Customer Due Diligence (CDD) - as this is often used interchangeably.