Enhanced Due Diligence (EDD): When and Why It Matters
EDD is applied to higher-risk customers and transactions to deepen review, increase monitoring, and strengthen evidence for compliance decisions.
When to use EDD
- High-risk customers
- Complex transactions
- Regulatory triggers
- PEP or sanctions exposure
What EDD includes
Enhanced due diligence involves additional verification steps, source-of-funds checks, enhanced monitoring, and deeper documentation of the customer relationship and risk assessment.
EDD vs standard CDD
Standard CDD applies to most customers. EDD is a deeper layer activated when risk indicators, such as PEP status, complex ownership structures, or high-risk geographies, require additional scrutiny.
AI Shield Nexus is an independent technology platform designed to support compliance with CBN regulations and is not affiliated with, endorsed by, or representing the Central Bank of Nigeria. AI Shield Nexus is a product of MTC Global Services.