If you have the CC set for 1 amp, but the load is drawing less than 1 amp, the CC regulator's voltage output goes as high as it can. This is why the design works: the CC regulator doesn't get in the CV regulator's way until you hit the current set limit, at which point the CC regulator starts starving the CV regulator of voltage.
The excess current doesn't go anywhere, it is just never drawn from the rectifier in the first place. Rather, it's the other way around. It's the excess voltage which must be dealt with, not excess current. If your are operating from a 18 volt supply, and your load draws 10 volts at 1 amp, the regulators must burn off the top 8 volts (at 1 amp) as heat.