AML & Compliance Intermediate

EDD (Enhanced Due Diligence)

💡 In plain English: Extra-deep background checks applied to high-risk customers — politicians, large cash businesses, and clients in high-risk countries.

Definition

Enhanced Due Diligence is an additional level of scrutiny applied to higher-risk customers, requiring greater documentation, deeper investigation of source of funds and wealth, and more frequent review.

📌 Real-World Example

A politician opening a business account in a UAE bank triggers EDD. The bank must document the source of funds, business activities, and apply senior management approval.

Related Terms

AML (Anti-Money Laundering)
The rules and systems banks use to stop criminals turning illegal...
KYC (Know Your Customer)
The process banks use to verify who you are, what you do, and...
CDD (Customer Due Diligence)
The standard level of identity and background checks a bank...
PEP (Politically Exposed Person)
Politicians, senior government officials, judges, and military...
SAR / STR (Suspicious Activity / Transaction Report)
A confidential report a bank files with regulators when it...
← Back to Glossary Browse Courses →

⚠️ Educational Content: All definitions and examples on this page are for educational and consultancy reference purposes only. They do not constitute financial, legal, or investment advice. Moneykar is not registered with SEBI, CBUAE, SCA, or any financial regulator. Consult a qualified professional before making financial decisions.

🤖