Definition
Enhanced Due Diligence (EDD) refers to enhanced verification and assessment procedures applied to higher-risk customers or transactions.
Context
Enhanced Due Diligence (EDD) is part of risk-based compliance and anti-money laundering (AML) frameworks. It is applied in higher-risk situations, such as politically exposed persons (PEP), complex ownership structures, or cross-border relationships. EDD builds on Customer Due Diligence (CDD) by introducing more in-depth checks, particularly regarding source of wealth and source of funds.
Meaning
Enhanced Due Diligence (EDD) is mandatory in high-risk scenarios and is designed to identify and mitigate risks related to money laundering, corruption, and other forms of financial crime.
Example
Additional verification of source of funds and source of wealth for a high-risk customer.
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Enhanced Due Diligence (EDD)", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/enhanced-due-diligence-edd/, accessed April 18, 2026.