What should customer due diligence software do for Tranche 2 businesses?
Customer due diligence software for Tranche 2 businesses should help teams identify who they are dealing with, understand ownership and control, assess customer risk, trigger enhanced steps where needed, and keep evidence that the process was completed.
CDD is a workflow, not a single check
AUSTRAC starter-pack material includes different onboarding and initial CDD forms for individuals, sole traders, body corporates, partnerships, associations, trusts, and government bodies. That distinction matters because the information needed for a simple individual is not the same as the information needed for a trust or company.
Good CDD software should guide the user through the right path, record the reasoning, and make later review possible. A folder of forms can work for a very small operation, but it becomes hard to manage when several staff members, client types, and review triggers are involved.
CDD software checklist
- Customer-type selection and tailored data capture.
- Identity and verification task tracking.
- Beneficial ownership and control records.
- Risk assessment fields linked to the customer profile.
- Enhanced CDD triggers and follow-up tasks.
- Periodic and trigger-event review workflows.
- Escalation notes and unusual activity decision records.
- Audit history showing who did what and when.
How AUSTRAC starter-pack forms map to software
The starter-pack pattern separates onboarding, initial customer due diligence, enhanced customer due diligence, periodic review, trigger-event review, unusual activity information, unusual activity review, and escalation. In software terms, these are not just documents. They are states in a customer lifecycle.
A strong CDD product should know whether the customer is new, incomplete, verified, higher risk, due for review, subject to a trigger event, or escalated. That status should be visible to the people responsible for the file and supported by an audit trail.
Manual CDD versus software CDD
| Manual pattern |
Software pattern |
| One generic form for every customer |
Different workflows for individuals, companies, trusts, associations, partnerships, and government bodies. |
| Risk notes in free text |
Structured risk factors linked to CDD and review decisions. |
| Reviews remembered manually |
Periodic and trigger-event review status is visible in the workspace. |
| Evidence spread across folders |
Identity, ownership, risk, escalation, and review evidence stay with the customer record. |
Where AML Shield fits
AML Shield is built around operational AML workflows, including CDD, program setup, records, training, and practical guidance. It is worth reviewing when a Tranche 2 business wants CDD to live inside its broader AML process rather than as a disconnected identity-check step.
Frequently asked questions
What is CDD software for Tranche 2?
CDD software helps a business collect, assess, record, and review customer due diligence information as part of its AML workflow.
What should CDD software record?
It should record the customer type, identity information, beneficial ownership where relevant, risk factors, verification steps, enhanced CDD triggers, review dates, and decision evidence.
Why does customer type matter in CDD software?
Different customer types require different information. Individuals, companies, trusts, partnerships, associations, and government bodies should not be forced through the same generic workflow.
How should CDD software handle reviews?
It should support periodic review, trigger-event review, updates to risk information, and a record of who reviewed the customer and why.