What is the difference between due diligence and enhanced due diligence?
Customer Due Diligence (CDD), or due diligence is the process of understanding a customer’s identity in order to assess the Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF) risks the customers pose to the business. Under UAE’s Anti-Money Laundering (AML) laws, there are different levels of Customer Due Diligence (CDD) prescribed, that are to be adopted by the businesses based on the degree of ML/TF and PF risks posed by the customer.
Enhanced due diligence (EDD) is a more rigorous and detailed version of due diligence, applied when customers considered high-risk.
To understand CDD, types of CDD, and the difference between the various types of CDD, check out our video here: