Which jurisdictions require enhanced due diligence?

Singapore
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Which jurisdictions require enhanced due diligence?

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Enhanced Due Diligence (EDD) is performed by Regulated Entities when dealing with customers who are classified as posing high ML/TF risks. One of the criteria for assessing a customer as a high-risk customer is the jurisdiction of the customer. If the customer belongs to or is closely associated with high-risk jurisdictions such as:

  • Jurisdictions that are subject to a call for action or are under increased monitoring by FATF
  • If the jurisdiction is infamous for high levels of corruption
  • If the jurisdiction is notorious for drug production and cartel activities
  • If there is a lack of financial transparency in the jurisdiction
  • If the jurisdiction is undergoing an unstable political environment
  • If the jurisdiction is a tax haven
  • If the jurisdiction is subject to economic sanctions

If a customer belongs to a jurisdiction noted for any of the above-mentioned red flags, then regulated entities are required to treat such customer as a high-risk customer and perform EDD measures as a part of their AML compliance obligations.

To know more about EDD, you can check out this informative illustration.