What is the difference between CDD and EDD?
Customer Due Diligence (CDD) is the process that regulated entities must perform to identify their customers and assess their risk profiles.
Enhanced Due Diligence (EDD) is a stricter form of CDD.
It is applied to customers that are considered high-risk and thus require further scrutiny.
Factors contributing to a customer being considered high-risk include their geographic location, nature of business, delivery channels, products, services, nature and size of transactions, exposure to PEPs, and more.
To understand the various types of customer due diligence, see this video: Video on Decoding the types of Customer Due Diligence