What is Enhanced Customer Due Diligence in Singapore?
Singapore’s AML regulation regime requires Regulated Entities to adopt a Risk-Based Approach (RBA), i.e. when a customer poses a high risk, more stringent AML controls and procedures must be implemented. Therefore, the Regulated Entities are required to implement Enhanced Customer Due Diligence (EDD) measures when a customer is deemed to pose a higher ML/FT risk to the entity.
While performing EDD, the Regulated Entities are required to verify the customer’s source of funds and source of wealth and understand the intent of the transaction. Regulated Entities in Singapore are required to get senior management’s approval before onboarding a high-risk customer.
Refer to this insightful infographic on Enhanced Customer Due Diligence to learn more.