What is the purpose of EDD?
Enhanced Due Diligence (EDD) is an Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) process which seeks to mitigate Money Laundering (ML), Terrorism Financing (TF), and Proliferation Financing (PF) risks emanating from high-risk customers. The purposes of EDD include:
• Meeting regulatory requirements under AML/CFT/CPF laws of UAE
• Ensuring informed decision on onboarding a high-risk customer
• Adopting higher controls for higher ML/TF and PF risk, as prescribed under the risk-based approach
• Understanding the business structures of the customer, reason for transactions, Source of Funds, Source of Wealth, etc
• Establishing positive reputation as an AML/CFT/CPF compliant business
• Ensuring no third-party involvement by asking for the first transactions from customer’s own account
• Detecting suspicious activities and transactions and reporting them promptly
To understand more on how EDD helps businesses, check out our infographic here: