How to identify a high-risk customer for Enhanced Due Diligence?

Singapore
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How to identify a high-risk customer for Enhanced Due Diligence?

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Regulated Entities must be aware of the risk factors associated with a customer that can pose the customer as a high-risk customer.

Regulated entities must also be aware of the red flag indicators suggesting high Money Laundering and Terrorism Financing (ML/TF) risk.

Enhanced Due Diligence (EDD) must be applied if:

  • The customer is a Politically Exposed Person (PEP)
  • The customer comes from or has a close association with a “high-risk jurisdiction” having weaker AML/CFT controls
  • Any concerned authority has notified the person as posing an increased ML/TF
  • The regulated entity observes any other red flag or potential risk indicator requiring the customer to be classified as high-risk

Check out this descriptive illustration to learn more about EDD.