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

**URL:** <https://www.amlfaqs.com/t/what-is-the-difference-between-due-diligence-and-enhanced-due-diligence/366>\
**Category:** UAE\
**Created:** [October 17, 2024, 10:33am UTC](https://www.amlfaqs.com/t/what-is-the-difference-between-due-diligence-and-enhanced-due-diligence/366 "2024-10-17T10:33:21Z")\
**Posts on this page:** 2\
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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 17, 2024, 10:33am UTC](https://www.amlfaqs.com/t/what-is-the-difference-between-due-diligence-and-enhanced-due-diligence/366/1 "2024-10-17T10:33:21Z")

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

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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:** [January 24, 2025, 12:48pm UTC](https://www.amlfaqs.com/t/what-is-the-difference-between-due-diligence-and-enhanced-due-diligence/366/2 "2025-01-24T12:48:02Z")

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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:

> **[Video on Decoding the types of Customer Due Diligence](https://amluae.com/video-on-decoding-the-types-of-customer-due-diligence/)**
>
> Customer Due Diligence becomes inevitable at the time of entering a business relationship with a customer by the Financial Institutions, DNFBPs, and VASPs