# What is the red flag for EDD?

**URL:** <https://www.amlfaqs.com/t/what-is-the-red-flag-for-edd/224>\
**Category:** Singapore\
**Created:** [October 9, 2024, 10:23am UTC](https://www.amlfaqs.com/t/what-is-the-red-flag-for-edd/224 "2024-10-09T10:23:26Z")\
**Posts on this page:** 2\
**Page:** 1

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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 9, 2024, 10:23am UTC](https://www.amlfaqs.com/t/what-is-the-red-flag-for-edd/224/1 "2024-10-09T10:23:26Z")

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What is the red flag for EDD?

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<div class="post-metadata">

**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 25, 2024, 10:33am UTC](https://www.amlfaqs.com/t/what-is-the-red-flag-for-edd/224/2 "2024-10-25T10:33:08Z")

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Regulated Entities in Singapore are required to perform Enhanced Due Diligence (EDD) when dealing with a high-risk customer.

A customer is adjudged as a high-risk customer if there are certain red flags associated with the customer, such as:

- If the customer is a Politically Exposed Person or a close associate of a PEP
- If the customer comes from or has a close association with a high-risk jurisdiction, such as FATF blacklist or grey list countries
- If the customer behaviour suggests potential suspicious activity

Transform your understanding on Enhanced Due Diligence with this descriptive illustration:

> **[Enhanced Due Diligence (EDD): Navigating the measures to manage high-risk](https://amlsingapore.com/enhanced-due-diligence-navigating-the-measures-to-manage-high-risk/)**
>
> In this article, let us explore Enhanced Due Diligence (EDD), the circumstances when EDD is performed, and its significance under AML Singapore regulations.