What is EDD and CDD in KYC?
Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and Know Your Customer (KYC) are important components of the Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) compliance obligations of a business regulated under AML/CFT/CPF laws of UAE. EDD and KYC, along with many other processes are part of CDD measures.
CDD aims to understand a customer’s identity and analysing the Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF) risks posed by the customer and adopt risk mitigation measures accordingly. KYC is identifying and verifying the identity of the customer. EDD is additional due diligence measures adopted for high-risk customers. Therefore, KYC and EDD are part of CDD measures.
To understand the various components of CDD, watch out video here: