On which type of customers, Enhanced Due Diligence has to be carried out?

Singapore
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On which type of customers, Enhanced Due Diligence has to be carried out?

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Regulated Entities are required to follow a Risk-Based Approach in Anti-Money Laundering (AML) compliance, where Enhanced Due Diligence (EDD) must be carried out when dealing with high-risk customers. A customer is said to pose high ML/TF risks 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.

Visit this blog to learn more about EDD