What is the difference between due diligence and enhanced due diligence?

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: