What does EDD stand for in due diligence?
Enhanced Due Diligence (EDD) is a type of Customer due diligence (CDD) which is applied to high-risk customers posing increased risks of financial crimes. It is part of the obligations for businesses regulated under Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) in UAE. EDD is the more stringent version of CDD and involves measures such as seeking information from the customer about their Source of Funds or Source of Wealth, ensuring rigorous monitoring of business relationship with the customer, seeking first payment from the customer’s own account, etc.
To learn about the intricacies of EDD, check out our video here: