Enhanced due diligence (EDD)
Enhanced due diligence (EDD) is the deeper review financial institutions apply to higher-risk customers: those flagged by geography, ownership structure, industry, or expected activity. Where standard customer due diligence (CDD) establishes identity and a risk profile for every customer, EDD adds source-of-funds and source-of-wealth checks, senior-level approval, and closer ongoing monitoring, all documented so a regulator can follow the reasoning.
By Krisan Nichani, Chief Compliance Officer
EDD is risk-based by design: programs define what triggers it (politically exposed persons, high-risk jurisdictions, layered or cross-border ownership, cash-intensive industries) and what the deeper file must contain. It is also where onboarding stalls hardest, because every additional layer of ownership or explanation means more documents and more reviewer time.
Infinite runs reviews to network standard: Compliance AI assembles and documents the case before an analyst opens it, human-approved policy governs the outcome, and judgment calls go to named analysts. A counterparty vetted once on the network is vetted for every participant, so the deep file gets built once instead of at every institution.
Frequently asked questions
When is enhanced due diligence required?
When risk factors elevate a relationship: politically exposed persons, high-risk jurisdictions, complex or layered ownership, or activity that doesn’t match the customer’s profile. Each program defines its own risk-based triggers. Politically exposed person (PEP)
What is the difference between CDD and EDD?
Customer due diligence (CDD) is the baseline applied to every customer: identity verification and a risk profile. EDD is the escalation for high-risk relationships: source of funds and wealth, the purpose of the relationship, senior-level approval, and more frequent refresh and monitoring, all documented in the customer file. Know Your Customer (KYC)
Who makes the final decision on an EDD case?
EDD cases require judgment, so they go to a named analyst under human-approved policy, never to the model on its own. Compliance AI assembles the case (documents, screening results, source-of-funds evidence) before the analyst opens it, and the approve, reject, or escalate call is recorded with that analyst’s identity and reasoning. Compliance AI
See it on your own flows.
A 30-minute walkthrough of a live account and the screening record behind each payment.
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