Enhanced Due Diligence (EDD) procedures

This document applies to customers that pose more risk, such as foreign companies, high transaction volumes, or customers linked to high-risk countries. EDD goes deeper than standard CDD.

Examples include collecting more documents, understanding source of funds, or requiring management approval before onboarding. The document should explain clear triggers for EDD so staff know when to apply it.

A strong EDD document balances caution and practicality. It should not say “collect everything.” It should explain what extra steps make sense for each risk type and how decisions are documented. Regulators want to see thoughtful controls, not panic.

Download document sample

Recommended

Customer Identification Program (CIP / KYC)

Rules and checks used to confirm a customer’s identity, such as name, date of birth, address, and official ID.

Enhanced Due Diligence (EDD) procedures

Extra checks for high-risk customers, like deeper background reviews, stronger monitoring, and more frequent updates.

Customer Due Diligence (CDD) procedures

Steps for assessing customer risk, including understanding the customer’s business, expected activity, and source of funds.

Customer Identification Program (CIP / KYC)

Rules and checks used to confirm a customer’s identity, such as name, date of birth, address, and official ID.

Enhanced Due Diligence (EDD) procedures

Extra checks for high-risk customers, like deeper background reviews, stronger monitoring, and more frequent updates.

Customer Due Diligence (CDD) procedures

Steps for assessing customer risk, including understanding the customer’s business, expected activity, and source of funds.

Customer Identification Program (CIP / KYC)

Rules and checks used to confirm a customer’s identity, such as name, date of birth, address, and official ID.

Enhanced Due Diligence (EDD) procedures

Extra checks for high-risk customers, like deeper background reviews, stronger monitoring, and more frequent updates.

Customer Due Diligence (CDD) procedures

Steps for assessing customer risk, including understanding the customer’s business, expected activity, and source of funds.