Enhanced Due Diligence

Due diligence is a crucial aspect of AML compliance, particularly for companies that deal warpseq.com find this tech guide with large-value transactions or have customers who are at risk of money laundering and financial crime. It helps eliminate the most dangerous customers and prevent them from funding terrorist groups as well as other criminal organizations.

The EDD procedure is more thorough than regular due diligence and includes an array of checks. This involves obtaining more identification documents as well as performing thorough checks of a customer’s location and the source of funds. This kind of due diligence is generally utilized for high-risk clients like politically exposed people (PEPs), people who reside in high-risk nations and businesses or individuals which are cash-intensive.

The more complex the person, legal entity or transaction, the more extensive the EDD process should be. Regulators typically favor the risk-based approach that employs documented risk assessment policies in order to determine the level of scrutiny needed for each situation. The EDD process includes gathering more reliable data, such as information about the person’s suppliers and clients, corporate/legal structures, and legal structures. EDD processes are usually more expensive, time-consuming and demanding of more documentation when compared to CDD procedures. It is therefore crucial to have a solid and reliable identity verification technology like the one integrated into 1Kosmos BlockID to make this process less complicated for your company.