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.
Correspondent banking is when one bank (correspondent) provides services on behalf of another bank (respondent):
This creates indirect customer relationships requiring special due diligence.
Before standardization, each correspondent bank created its own questionnaire, leading to:
The CBDDQ provides a common template.
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
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