Enhanced Due Diligence

As the world continues to turn into increasingly riskier, anti-money washing (AML) and other compliance methods need to evolve as well. Increased due diligence integrating VDRs in your business for a competitive edge (EDD) can be an advanced degree of KYC that dives deeper into assessing high-risk customers, transactions and business relationships. It goes beyond the standard identification verification and risk diagnosis steps of Customer Due Diligence (CDD), to include extra checks, exacting monitoring techniques and more.

Unlike CDD, which can be typically finished prior to outset a business romantic relationship and can often be automated, EDD is definitely triggered by simply specific persons, businesses, industries or countries that pose a greater risk of money washing or various fraud. During EDD, the information collected much more in-depth and may incorporate screening just for financial criminal offenses risks just like sanctions email lists, adverse press reports and more.

If you should Use Increased Due Diligence

Although CDD is mostly a critical AML requirement for pretty much all companies, it really is difficult to distinguish red flags meant for high-risk people and businesses. That’s why EDD is used to screen to get more detailed complex risk indicators, such as PEPs and their close colleagues and family members. It’s likewise used to carry out comprehensive research into people or perhaps entities who have got a history of financial crime, just like criminal activity, tax evasion, corruption and terrorism.

It may be also utilized to review the organization background of a business, including the details of its management workforce and final beneficial owners (UBOs), and also reviewing enterprise documents to get red flags. When you really need to perform EDD, it’s crucial for you to understand the dangers and how to do it right.