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)
“But let my due feet never fail
To walk the studious cloister’s pale,
And love the high embowed roof,
With antic pillars massy proof,
And storied windows richly dight,
Casting a dim, religious light.”
—John Milton (1608–1674)
“What makes this Generation of Vermin so very Prolifick, is the indefatigable Diligence with which they apply themselves to their Business. A Man does not undergo more watchings and fatigues in a Campaign, than in the Course of a vicious Amour. As it is said of some Men, that they make their Business their Pleasure, these Sons of Darkness may be said to make their Pleasure their Business. They might conquer their corrupt Inclinations with half the Pains they are at in gratifying them.”
—Joseph Addison (1672–1719)