Enhanced Due Diligence (EDD)
Definition
A heightened set of CDD measures applied to higher-risk customers or relationships, including PEPs, high-risk jurisdictions, and certain business types. EDD typically requires senior management approval, source-of-wealth verification, and more intensive monitoring.
- Applies to
- PEPs, high-risk jurisdictions, higher-risk business types
- Approval level
- Senior management sign-off typically required
- Key measure
- Source-of-wealth verification
- Monitoring
- More frequent and intensive than standard CDD
Common questions
How does EDD differ from standard Customer Due Diligence?+
Standard CDD verifies identity and assesses baseline risk for all customers. EDD adds extra steps, such as verifying the source of wealth and funds, more frequent transaction monitoring, and senior sign-off, reserved for relationships the risk assessment flags as elevated.
Who typically triggers a move from CDD to EDD?+
Compliance staff or an automated risk-scoring system usually flags the trigger, based on factors such as PEP status, a high-risk country link, a cash-intensive business, or adverse media, rather than the customer disclosing it voluntarily.
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