Glossary term

Enhanced Due Diligence (EDD)

This term has 4 definitions.

1. Additional screening imposed on high-risk customers, such as sanctions-related risks.

2. EDD involves more rigorous checks than standard due diligence, especially for high-risk clients. It requires deeper verification and ongoing monitoring of client activity.

3. EDD is required for foreign financial institutions, private banking accounts, and high-risk customers. It goes beyond standard due diligence by gathering deeper information to assess risk exposure and compliance. The USA PATRIOT Act mandates EDD under Section 312.

4. Wolfsberg Principles recommend EDD for higher-risk clients such as PEPs or entities from high-risk jurisdictions. This includes deeper source-of-funds inquiries, senior management approval, continuous monitoring, and periodic reviews to ensure elevated risk levels are properly managed.

All terms beginning with E