Video on Enhanced Due Diligence
Video on Enhanced Due Diligence
This video focuses on the Enhanced Due Diligence (EDD) which is an advanced/ extended form of Customer Due Diligence, wherein additional checks are required to be done to manage the increased financial crime risks. The regulated entities (Financial Institutions, DNFBPs and Virtual Asset Service Providers) are required to undertake robust and rigorous version of CDD when it involves high risks customers. This video will help you understand what is EDD, situations when EDD is to be performed and measures to be applied. Following measures can be adopted to be performed as part of EDD.
- Entities must increase the scrutiny around customer identities to ensure that customers are what they say they are.
- Entities must get more information on the customer’s business, products, or services and conduct detailed inquiries about the purpose of the business relationship.
- Entities must determine the legitimacy of the customer’s source of funds and wealth.
- A thorough background search on the customers must be performed through public and private databases, internet research, social media, and adverse media checks to understand the customer’s connections with financial crimes.
- The customer profile must be subject to increased monitoring.
- The regulated entities must get senior management approval before establishing any business relationship or transaction with high-risk customers.
- Asking the customer to make the first payment from the bank account in its name, ensuring the third-party funds are not used in the proposed business relationship or transaction.
Chapters:
- 0:00 Introduction on Enhanced due diligence
- 0:31 Meaning of EDD
- 0:58 Performing the KYC process
- 1:22 High-risk customers
- 1:36 High-risk countries
- 1:43 Doubt about the appropriateness
- 1:50 Red flag indicators
- 2:01 Increase scrutiny around customer identities
- 2:25 Getting more information on customer’s business
- 2:39 Thorough background check
- 2:51 Detailed analysis and frequent monitoring
- 3:01 Management approval
- 3:10 Insist 1st payment from bank account
- 3:21 Short brief on EDD
Related Infographics
- What does Enhanced Due Diligence (EDD) help you with?
- Applying Enhanced Due Diligence measures under UAE AML Regulations
- Elements of the Customer Due Diligence Process
- Source of funds and source of wealth
- Customer Due Diligence Process Chart
- Understand the types of CDD measures to effectively mitigate the ML/FT risks
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