
Enhanced Due Diligence Form


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People also ask
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What are the requirements for enhanced due diligence?
Customer Due Diligence: Requires firms to collect customer information, and verify the identity of the customer. Enhanced Due Diligence: Firms must collect additional customer identification materials and verify additional information such as the source of funds, source of wealth and ultimate beneficial owner.
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How often is enhanced due diligence required?
Typically, enhanced due diligence procedures are required when customers represent a greater risk than CDD guidance can solve for. Some examples of this include: High-risk customers like PEPs or known financial criminals and close family members.
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Who qualifies for enhanced due diligence?
EDD is needed for higher-risk customers; customers that pose higher money laundering or terrorist financing risks and thus present increased exposure to banks. This might be in relation to the jurisdiction the customer is based in, the products they will be accessing, or the nature of the customer themselves.
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How do I fill out a due diligence form?
A DDQ template should include the following categories: Basic Company Information. Historic Financial Performance. Employee Management and Governance. Legal and Regulatory Compliance. Product Market and Competitor Analysis. Consumer Demographics. Technology and IT Infrastructure. Physical Assets and Real Estate.
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Who is a high-risk member for enhanced due diligence?
There are certain types of customers or business relationships that are considered higher risk and therefore require Enhanced Due Diligence. These may include: Politically Exposed Persons (PEPs): Individuals who hold prominent public positions or have connections to political figures.
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What is enhanced due diligence form?
Enhanced Due Diligence (EDD) is an advanced risk assessment process that involves gathering and analyzing information about high-risk customers or business relationships to identify and mitigate potential financial crimes, such as money laundering and terrorist financing.
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When would enhanced customer due diligence be required?
When to apply ECDD. ECDD must be applied in several high-risk situations: If you suspect that a person or transaction is linked to a crime, a suspicious matter report (SMR) must be submitted to AUSTRAC. Simply submitting an SMR does not mitigate ML/TF risk – in such situations ECDD also needs to be applied.
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Who requires enhanced due diligence?
Typically, enhanced due diligence procedures are required when customers represent a greater risk than CDD guidance can solve for. Some examples of this include: High-risk customers like PEPs or known financial criminals and close family members.
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