# What is enhanced due diligence?

**URL:** <https://www.amlfaqs.com/t/what-is-enhanced-due-diligence/443>\
**Category:** Singapore\
**Created:** [October 25, 2024, 8:02am UTC](https://www.amlfaqs.com/t/what-is-enhanced-due-diligence/443 "2024-10-25T08:02:05Z")\
**Posts on this page:** 1\
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**Author:** ![pathik](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/pathik/32/5_2.png) [@pathik](https://www.amlfaqs.com/u/pathik)\
**Post date:** [October 25, 2024, 8:02am UTC](https://www.amlfaqs.com/t/what-is-enhanced-due-diligence/443/1 "2024-10-25T08:02:05Z")

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Enhanced Due Diligence (EDD) is a set of compliance measures that are performed in addition to Customer Due Diligence.  
During the Customer Risk Assessment (CRA) process, if a customer is assessed to be a high-risk customer, additional checks must be applied in the form of EDD, including:

- Establishing the legitimacy of the customer’s income level,
- Determining the source of funds and source of wealth,
- Understanding the purpose of transactions
- Obtaining senior management’s approval before dealing with such high-risk customer

Here’s an informative article on EDD that can help you understand the concept better:

> **[Enhanced Due Diligence (EDD): Navigating the measures to manage high-risk](https://amlsingapore.com/enhanced-due-diligence-navigating-the-measures-to-manage-high-risk/)**
>
> In this article, let us explore Enhanced Due Diligence (EDD), the circumstances when EDD is performed, and its significance under AML Singapore regulations.