EDD
Enhanced Due Diligence
Definition
Additional due diligence measures applied to higher-risk customers, transactions, or business relationships. EDD typically involves obtaining senior management approval, establishing the source of wealth and funds, and conducting enhanced ongoing monitoring.
Regulatory Context
EDD is mandatory for politically exposed persons (PEPs), correspondent banking relationships, and customers from high-risk jurisdictions as identified by FATF. Most AML directives specify the triggers requiring enhanced measures.