Enhanced due diligence is a risk-based due diligence process that empowers companies to efficiently manage high-risk customers and transactions while still adhering to the regulations. If properly implemented it shields businesses from serious legal and reputational harm while virtual data room pricing what you need to know ensuring that their Anti-Money Laundering (AML) and Customer Due Diligence (CDD) processes are efficient in combating financial criminality.

Most of the time, EDD is required when a customer or transaction is deemed high-risk because of complex ownership structures, political exposure, or involvement in industries prone to money laundering or financial crime. Additionally any significant change in customer behavior like an increase in transaction volume or the nature of transactions that are not well-known, may require an EDD. Additionally, any transaction that involves any region or country that is more prone to financial terrorism and money laundering requires an EDD.

EDD focuses on identifying beneficial owners and revealing hidden risks like the true beneficiaries in a transaction or a account. It also detects unusual or suspicious patterns in transactions, and validates information with independent checks and interviews, website visits and third-party verification. In addition, a examination of the reputation of local markets through media sources and existing AML policies round out the risk assessment.

EDD is more than just an obligation for compliance it’s a vital element of protecting the integrity of the global financial system. Implementing EDD procedures that work is not just a matter for compliance. It’s an investment in the safety and security the global financial system.