What is the difference between CDD and EDD?
The Anti-Money Laundering (AML) regulations in Singapore require regulated entities to apply adequate Customer Due Diligence (CDD) measures based on a customer’s risk profile. Enhanced Due Diligence (EDD) is an extension Simple or Standard CDD that is conducted when dealing with a high-risk customer.
So effectively, CDD is conducted for all customers, while EDD is only conducted for high-risk customers
| CDD | EDD |
|---|---|
| Know Your Customer (KYC) | Know the Beneficial Owner |
| Customer Screening | Determining Source of Funds and Source of Wealth |
| Ongoing Monitoring | Enhanced Ongoing Monitoring |
| Undertaking transactions based on Simple or Standard CDD | Undertaking transactions after understanding the reason for the intended transaction |
| Onboarding a customer with the approval of the Compliance Officer | Onboarding customer with the approval of senior management |
EDD goes a step beyond CDD by verifying additional documents and information and applying additional checks. Check out this very informative blog on Enhanced Due Diligence to learn more