Enhanced Due Diligence (EDD)

Enhanced Due Diligence goes beyond standard KYC procedures and is applied when there's a higher risk of money laundering or terrorist financing. This could be due to the nature of the client (e.g., PEPs), their business activities, or their geographic location. EDD typically involves obtaining additional information about the client and their business, more frequent updates of client information, closer monitoring of transactions, and potentially senior management approval for certain actions. For accountants, implementing EDD might include deeper investigation into a client's source of wealth, understanding complex ownership structures, or more frequent reviews of high-risk client relationships. Proper application of EDD is crucial for managing risks and meeting regulatory expectations.

‍