Enhanced due diligence

Enhanced Due Diligence (EDD) is a thorough process used by financial institutions and organizations to carefully verify the identities and backgrounds of customers, especially when there’s a higher risk involved, such as suspicious activity or certain jurisdictions. It involves collecting detailed information, such as verifying the source of funds and understanding the customer’s business and reasons for transactions. This helps prevent money laundering, fraud, and other illegal activities by ensuring that the client’s intentions are legitimate and compliant with regulations. Essentially, EDD is a more rigorous check-off to maintain financial integrity and security.