Correspondent Banking Due Diligence Questionnaire (CBDDQ)
What the CBDDQ is, who uses it, and how standardized questionnaires streamline correspondent banking KYB.
The CBDDQ is a standardized due diligence questionnaire developed by the Wolfsberg Group for banks to assess correspondent banking relationships.
What Is Correspondent Banking
Correspondent banking is when one bank (correspondent) provides services on behalf of another bank (respondent):
- Payment processing
- Cash management
- Foreign exchange
- Trade finance
This creates indirect customer relationships requiring special due diligence.
Why CBDDQ Exists
Before standardization, each correspondent bank created its own questionnaire, leading to:
- Redundant requests for the same information
- Inconsistent risk assessment
- High operational burden on respondent banks
The CBDDQ provides a common template.
What CBDDQ Covers
| Section | Topics |
|---|---|
| Entity information | Legal name, structure, ownership, licenses |
| AML program | Policies, procedures, training, testing |
| KYC/CDD | Customer due diligence processes |
| Transaction monitoring | Systems, alert investigation |
| Sanctions | Screening, list management |
| PEP/high-risk | Policies for PEPs, high-risk customers |
| Anti-bribery | Corruption prevention measures |
CBDDQ and KYB
The CBDDQ is KYB for financial institutions as customers. It applies the same principles—beneficial ownership, risk assessment, controls evaluation—to bank-to-bank relationships.
For fintechs and payment providers with banking partners, expect to complete CBDDQ-style questionnaires.
Related: Correspondent Banking | CDD | AML