به گزارش خزرفوری Every year, more than $2tn worth of illicit cash flows into the global financial system, despite the efforts of regulators and financial institutions to stop the financing of terrorists and money laundering. One method to combat dirty money is through enhanced due diligence (EDD) and a comprehensive know your customer (KYC) process […]
Every year, more than $2tn worth of illicit cash flows into the global financial system, despite the efforts of regulators and financial institutions to stop the financing of terrorists and money laundering. One method to combat dirty money is through enhanced due diligence (EDD) and a comprehensive know your customer (KYC) process which focuses on transactions and customers that pose greater fraud risks.
EDD is considered a higher screening level than CDD and can also include more information requests like sources and corporate appointments, funds, and relationships with companies or individuals. It is also more likely to require principle moments of data room provider comparison extensive background checks, like media searches, in order to find any public or reputational evidence of criminal activity that could create a risk to the bank’s business.
The regulatory bodies have guidelines for when EDD should be triggered. This is usually dependent on the nature of the transaction or the customer, as well as if the individual in question is politically exposed (PEP). It is the decision of each FI to decide whether they wish to include EDD to CDD.
It is important to have policies that clearly communicate to employees what EDD expects and what it doesn’t. This can help to avoid high-risk situations that lead to huge fines for fraud. It’s also vital to have a thorough identity verification process that enables you to detect red flags like hidden IP addresses, spoofing technology and fake identities.
