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:
“Art is beauty, and every exposition of art, whether it be music, painting, or the drama, should be subservient to that one great end. As long as nature is a means to the attainment of beauty, so-called realism is necessary and permissable [sic], but it must be realism enhanced by idealism and uplifted by the spirit of an inner life or purpose.”
—Julia Marlowe (1866–1950)
“Only what is rare is valuable.
Let no one dare to call another mad who is not himself willing to rank in the same class for every perversion and fault of judgment. Let no one dare aid in punishing another as criminal who is not willing to suffer the penalty due to his own offenses.”
—Margaret Fuller (1810–1850)
“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)