Enhance Due Diligence is required where the customer, product or service is considered to be a greater risk.

EDD is additional information collected for higher-risk customers to provide a deeper understanding of the customers activity to mitigate associated risk. When clients or transactions are large enough to warrant EDD, there is no room for leniency and no risks should be taken.

The entire process of EDD must be documented in detail, and regulators should be able to have immediate access to the data.

There are a number of situations that can be counted as high risk such as where you do not meet your customer face to face or where you are dealing with a PIP’s.

A high risk customer does not mean that they will be involved in money laundering or other criminal activity but that there is an increased opportunity to be involved.