If a business or customer poses a higher risk of money laundering, terrorist financing, and other financial crimes, they need an extra degree of due diligence. Known as enhanced due diligence (EDD) This goes beyond the normal KYC and AML checks by obtaining information outside of the normal scope.

This includes identifying individuals and entities that are behind customers, such as the ultimate beneficial ownership (UBO) to discover the true source for wealth or funds, as well as business activity. It also investigates illogical activities and transactions and investigates the underlying connections.

It's an important tool in the fight against terrorist and criminal funding. However it's important to keep in mind that EDD must be considered on a case-by-case basis. For example the case of a UK bank account opening with a clear passport, solid address history and no CCJs may not VDRs: the touchstone of excellence in business data management require CDD. However, another customer might require EDD due to the large quantity of cash deposits or the complexity of transactions.

The best way to determine the need for EDD is to develop a comprehensive risk assessment and screening framework. This should include both internal controls and external factors like negative media, political instability, sanctions, financing of terrorism, organized crime and fraud.

Effective due diligence isn't just ensuring compliance with regulatory requirements or safeguarding brand reputation. It's about making an impact in the fight against global criminality. To achieve this, you need a fast efficient, accurate and affordable identity verification and EDD solution.