Enhanced Due Diligence (EDD)

Enhanced Due Diligence (EDD) is a series of extra due diligence measures that financial institutions take to examine high-risk customers and unusual transactions. This process is designed to detect and prevent potential cases of money laundering and other associated risks. 

The definition of enhanced due diligence applies to the extension of  Know Your Customer (KYC) and anti-money laundering (AML) processes that scrutinize potential business partnerships more deeply, uncovering risks beyond what Customer Due Diligence (CDD) can detect. Establishing EDD is essential for adopting a risk-based approach to combat these risks.

Frequently asked questions

1

What is an Enhanced Due Diligence Check?

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What is the Definition of Enhanced Due Diligence in Simple Words?

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3

What is the Difference Between SDD, CDD, and EDD?

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4

What are Some Examples of EDD Measures?

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When is Enhanced Due Diligence Required?

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How Often Should Companies Conduct EDD?

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