Does your organization have adequate safeguards in place to circumvent fraud and uphold evolving money laundering legislation? Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols are essential to avoid unnecessary risks and stay compliant with jurisdictional mandates; in addition, with fraudsters continuously finding ways to get around standard verification practices, Enhanced Due Diligence (EDD) has become an increasingly invaluable protection method. Designed to dig deeper than standard evaluations, EDD is particularly important when evaluating new business partnerships and assessing the risk profile of current and prospective clientele.

With 2023 expected to set a more demanding pace for compliance and additional remuneration to existing standards on the horizon out of the EU, business leaders will need to ensure the right protocols for AML practices and KYC are in place. Partnering with a robust EDD and AML software platform like iComplyKYC makes staying compliant easy. Below, we’ll discuss the importance of EDD, as well as the benefits of partnering with iComply.

What is Enhanced Due Diligence?

Enhanced Due Diligence, otherwise known as EDD, is a specific branch of foundational KYC (Know Your Customer) protocols designed to dig deeper than more standard levels of basic identity verification. EDD is essential for various scenarios, including when dealing with legal entities, Politically Exposed Persons (PEPs), known high-risk associates, etc. Common factors that may trigger enhanced investigation include:

• Cash-intensive businesses;
• Countries without adequate AML/CFT protocols;
• Companies that have unclear, unusual, and/or complex ownership or leadership structures;
• Businesses or individuals that are or have previously been subject to embargoes.

Where basic identification protocols may only be concerned with verifying entry-level details, EDD goes even further and investigates core data points like certificates of incorporation, known associates, additional financial history, and other advanced risk factors. As a screening approach, EDD is more robust and provides more detailed documentation for better threat assessment and compliance reassurance. This means that whether you’re dealing with a legal entity or an individual, your organization will get a much clearer picture of who you’re working with, as well as any relevant notes of potential risks you need to be aware of when moving forward.

Why it Matters

Beyond staying compliant with AML legislation, EDD helps to streamline your operations, avoid problematic partnerships, and makes it much more difficult for criminals to abuse financial channels. As we face an increasingly complex range of fraudulent practices, enhanced due diligence and vetted KYC protocols are one of the best ways to protect your organization, build trust among your customers, partners and investors, and solidify your brand as a leading player within your market.

EDD with iComplyKYC

At iComply, we recognize that having streamlined KYC and EDD protocols are essential when it comes to protecting your business when it matters most. Our innovative, modular suite of KYC products is designed to make it easy to integrate security measures and identity verification practices into your daily operations, with setup taking a matter of minutes. Our software utilizes edge computing and advanced end-to-end practices to process sensitive user data on the native device for optimal privacy and results that you can trust. (Don’t believe we’re fully end-to-end? Let us show you how)

Our suite of KYC products allows you to handle client and partner onboarding confidently and, best of all, can reduce the cost of running KYC protocols by up to 80%. We know that having access to the latest information is crucial to staying ahead of fraud and potential problems, which is why our platform makes it simple to obtain real-time data and updates on potential sanctions, police reports, or events of interest regarding current or potential clients in as little as 20 minutes. With iComplyKYC running your KYC, CDD, and EDD protocols, you can rest easy knowing that your team is compliant, protected, and ready to hit the ground running!

Book a demo with our team today to learn more about iComplyKYC and how our platform can be tailored to your specific needs and applications.

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