Money laundering is a global phenomenon and has been considered as major threat towards economic stability as it is associated with criminal's activity such as drug trafficking, terrorism funding and financial crimes including corruption and tax evasion. Advancement of technologies and emergence of cryptocurrencies such as Bitcoin and Monero are disruptive financial technology that present governments with new national security challenges and terrorist groups, criminals and rogue states with opportunities. Cryptocurrencies garnered attention and intense interest especially from businesses, consumers, central banks and other authorities as it promised to replace trust in commercial and central banks with a new decentralized system founded on block chain and related distributed ledger technology. Nevertheless, customer due diligence (CDD) which is the first line of defense of money laundering is vital in order to curb illicit money inflows and outflows from financial institution. In the era of cryptocurrencies, customer due diligence should be thoroughly conducted. The combination of information technology and CDD teams will create stronger defense in curbing the risks of money laundering in financial institution. This paper addressed the stages of money laundering, customer due diligence, emergence of cryptocurrencies and its nature as well as how it related to money laundering activities. Finally, the discussion on how CDD procedures could curb money laundering involving cryptocurrencies is also discussed.