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What is Customer Due Diligence (CDD)?

Customer Due Diligence (CDD) is a regulatory process required by the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) that all licensed financial institutions, including Syfe Hong Kong, must perform to verify the identity of our customers and assess potential risks of money laundering, terrorist financing, or other illicit activities.

In simple terms, CDD helps us ensure we know who our customers are and that the funds invested with us come from legitimate sources.

Why does Syfe conduct CDD?

We are legally required to do so under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO, Cap. 615) in Hong Kong. Performing proper CDD protects both you and Syfe from being used for illegal purposes and helps maintain the integrity of Hong Kong’s financial system.

When is CDD performed?

  • When you first open a Syfe account (onboarding)
  • When you reach certain investment or transaction thresholds
  • When there are material changes to your profile (e.g., change of address, employment, source of wealth/funds)
  • Periodically as part of ongoing monitoring (Enhanced Customer Due Diligence* may be triggered for higher-risk customers)

We may reach out to you from time to time to obtain more information and/or documents as part of this process.

*Enhanced Due Diligence (EDD): Required for higher-risk customers such as Politically Exposed Persons (PEPs), customers from high-risk jurisdictions, or complex ownership structures. Additional information and senior management approval are needed.

What happens if I don’t complete the CDD?

Syfe is legally prohibited from establishing or continuing a business relationship if CDD cannot be satisfactorily completed. This means:

  • Your account opening may be rejected
  • Your existing account may be restricted or suspended
  • We may not be able to process withdrawals or new investments until CDD is completed

Thank you for working with us on these regulatory requirements. They’re an important way to keep your money safe and to meet international anti‑money laundering standards. 

If you ever have questions about the CDD process, feel free to reach out to our Customer Service Team at support.hk@syfe.com.