What is the Enhanced Due Diligence solution?

Singapore
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What is the Enhanced Due Diligence solution?

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Enhanced Due Diligence (EDD) measures as a part of Anti-Money Laundering (AML) compliance are the solution to Regulated Entities’ worries about onboarding a customer posing a high risk of Money Laundering and Terrorism Financing (ML/TF) activities.

For instance,

  • Inquiring about the financial profile of the customer, including determining the source of funds and source of wealth, helps prevent ML/TF by ensuring that the customer’s funds are legitimate and not derived from illegal activities.
  • Onboarding the customer only with the approval of the senior management ensures that the senior management is aware of the increased risks posed by such high-risk customers
  • Conducting ongoing monitoring of transactions and business relationship gives Regulated Entities the scope to detect suspicious activities and identify potential red flags, enabling timely intervention to prevent financial crimes and protect the institution’s reputation

Check out this blog on Enhanced Due Diligence to learn more about EDD