Updated
GL-E-03
Glossary · Due Diligence and compliance
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.
01 / In 30 seconds
The short answer
- 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
02 / In plain words
What EDD means
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.
A case from practice
A former official with PEP status opens an account and is subjected to EDD. Besides the standard file, they are asked to explain in detail how their wealth grew during their years in public service. With declarations and evidence of legitimate sources assembled in advance, the check is passed; without them the bank would have refused without looking further.
When EDD is applied
- A client with PEP status
- A complex international structure
- A higher-risk country
- Very large sums
- Citizenship and residence by investment
- Opening accounts and private banking
03 / What it covers
What is intensified in EDD
Triggers
- PEP status
- A high-risk country
- Sanctions links
Depth
- A detailed source of wealth
- Growth of wealth
- Every contentious episode
Check
- More documents
- Longer approval
- Deeper examination
Who applies it
- Banks
- Investment programmes
- Regulators require it
04 / How it works
How EDD works
Determining the risk level
An enhanced file (SoW)
Explaining contentious points
In-depth approval
Approval
05 / Key facts
What you need to know
01
EDD is an enhanced version of the ordinary check
02
It is applied to higher-risk clients
03
It is triggered by PEPs, complex structures, high-risk countries
04
Deeper, longer and with more documents
05
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
06 / Expert advice
How to prepare in advance
For EDD an enhanced file is assembled in advance: a detailed source of wealth, an explanation of how the capital grew over the years and documents on every contentious episode. It helps to check yourself against the same databases compliance uses. Then the enhanced check goes smoothly rather than dragging on or ending in refusal.
What we do for you. 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.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
Enhanced due diligence — an enhanced check for higher-risk clients: deeper, longer and with more documents than ordinary due diligence.
Clients with PEP status, a complex international structure, from higher-risk countries, with very large sums or sanctions links.
No. It is a deeper check, not a verdict. With a properly assembled enhanced file it goes smoothly.
In depth: more documents, a detailed source of wealth, an explanation of the growth of wealth and a longer approval.
Assemble a detailed file on the source of wealth in advance, explain how the capital grew and close contentious episodes with documents.
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.
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