EDD (Enhanced Due Diligence)
Enhanced Due Diligence is the deeper set of checks a firm applies to higher-risk customers: politically exposed persons, high-value clients, or those in high-risk jurisdictions. It goes beyond standard CDD to verify source of funds, source of wealth, and ongoing transaction patterns in more detail.
High-risk operators are usually the party that must run EDD on their own customers, and a bank will check whether you do before it approves you. Missing EDD on the roughly 5-10% of customers who need it is enough on its own to fail a banking review, regardless of overall volume quality.
Customer Due Diligence is the baseline set of checks a regulated firm performs on every customer: verifying identity, understanding the purpose of the relationship, and assessing the risk they present.
A Politically Exposed Person is an individual entrusted with a prominent public function, along with their close associates and family, who therefore carries a higher risk of bribery or corruption.
Source of funds is the documented origin of the specific money moving through an account: where a given deposit or the working capital actually came from.
Adverse media screening is the checking of a customer, owner, or counterparty against negative news sources: reports of fraud, regulatory action, sanctions, or criminal association.