EDD
Enhanced Due Diligence
Enhanced Due Diligence — an intensified check for higher-risk clients: PEPs, complex structures, high-risk countries. It is deeper, longer and requires more documents than the standard check.
- What it is
- Enhanced due diligence — an enhanced check for higher-risk clients
- Who it is for
- PEPs, complex structures, high-risk countries, large sums
- How it differs
- Deeper, longer and with more documents
- Where it applies
- Banks, citizenship programmes, large transactions
- Can you prepare
- Yes: assemble an enhanced file in advance
In plain words
EDD (enhanced due diligence) is a deeper version of the ordinary check, applied to higher-risk clients. Where standard due diligence checks a basic set, EDD goes further: more documents, deeper examination of the origin of money, longer approval.
What triggers EDD: PEP status (a politically exposed person) and their associates, a complex international ownership structure, citizenship of or residence in a higher-risk country, very large sums, links with sanctioned persons. The logic is simple: where the risk is higher, the check is deeper — AML rules and regulators require this.
For the client it means not refusal but the need to prepare better. For EDD an enhanced file is assembled: a detailed source of wealth, an explanation of how the capital grew, documents on every contentious episode. With such a file the enhanced check goes smoothly; without it, it drags on or ends in refusal.
When EDD is applied
What is intensified in EDD
- PEP status
- A high-risk country
- Sanctions links
- A detailed source of wealth
- Growth of wealth
- Every contentious episode
- More documents
- Longer approval
- Deeper examination
- Banks
- Investment programmes
- Regulators require it
How EDD works
- 01Determining the risk level
- 02An enhanced file (SoW)
- 03Explaining contentious points
- 04In-depth approval
- 05Approval
What you need to know
- EDD is an enhanced version of the ordinary check
- It is applied to higher-risk clients
- It is triggered by PEPs, complex structures, high-risk countries
- Deeper, longer and with more documents
- It is not refusal but a need to prepare better
Common mistakes
- Not recognising your own higher risk profile
- Arriving without an enhanced file
- Not explaining the growth of wealth with documents
- Concealing PEP status or a complex structure
- Underestimating the timeline of the enhanced check
What this means for a BRIDGES client
BRIDGES GLOBAL assesses your risk profile in advance and prepares an enhanced file for EDD: a detailed source of wealth, an explanation of how the capital grew and documents on contentious points. That way the enhanced check goes smoothly rather than turning into a refusal.
Frequently asked questions
01 /What is EDD?
Enhanced due diligence — an enhanced check for higher-risk clients: deeper, longer and with more documents than ordinary due diligence.
02 /Who is subject to EDD?
Clients with PEP status, a complex international structure, from higher-risk countries, with very large sums or sanctions links.
03 /Does EDD mean refusal?
No. It is a deeper check, not a verdict. With a properly assembled enhanced file it goes smoothly.
04 /How does EDD differ from ordinary due diligence?
In depth: more documents, a detailed source of wealth, an explanation of the growth of wealth and a longer approval.
05 /How do you prepare for EDD?
Assemble a detailed file on the source of wealth in advance, explain how the capital grew and close contentious episodes with documents.
06 /How long does EDD take?
Longer than an ordinary check because of its depth. With a complete and clean file it is faster; with contentious points it takes longer, with requests.
See also
Read next
This material has undergone editorial review by BRIDGES.
Facing enhanced due diligence (EDD)?
We will assemble an enhanced source-of-wealth file, close contentious points and prepare answers to the check’s questions in advance.