Enhanced Due Diligence
While EDD has not been internationally defined, the USA PATRIOT Act dictates that institutions "shall establish appropriate, specific, and, where necessary, enhanced, due diligence policies, procedures, and controls that are reasonably designed to detect and report instances of money laundering through those accounts." US regulations require that EDD measures are applied to account types such as Private banking, Correspondent account, and Offshore banking institutions.
Because regulatory definitions are neither globally consistent nor prescriptive, financial institutions are at risk of being held to differing standards dependent upon their jurisdiction and regulatory environment. An article published by Peter Warrack in the July 2006 edition of ACAMS Today (Association of Certified Anti-Money Laundering Specialists) suggests the following:
A rigorous and robust process of investigation over and above (KYC) procedures, that seeks with reasonable assurance to verify and validate the customer’s identity; understand and test the customer’s profile, business and account activity; identify relevant adverse information and risk; assess the potential for money laundering and / or terrorist financing to support actionable decisions to mitigate against financial, regulatory and reputational risk and ensure regulatory compliance.
Read more about this topic: Know Your Customer
Famous quotes containing the words enhanced, due and/or diligence:
“While we were thus engaged in the twilight, we heard faintly, from far down the stream, what sounded like two strokes of a woodchopper’s axe, echoing dully through the grim solitude.... When we told Joe of this, he exclaimed, “By George, I’ll bet that was a moose! They make a noise like that.” These sounds affected us strangely, and by their very resemblance to a familiar one, where they probably had so different an origin, enhanced the impression of solitude and wildness.”
—Henry David Thoreau (1817–1862)
“... many of the things which we deplore, the prevalence of tuberculosis, the mounting record of crime in certain sections of the country, are not due just to lack of education and to physical differences, but are due in great part to the basic fact of segregation which we have set up in this country and which warps and twists the lives not only of our Negro population, but sometimes of foreign born or even of religious groups.”
—Eleanor Roosevelt (1884–1962)
“Keep your own secret, and get out other people’s. Keep your own temper, and artfully warm other people’s. Counterwork your rivals with diligence and dexterity, but at the same time with the utmost personal civility to them: and be firm without heat.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)