Quick Answer: Which Of The Following Are Subject To Enhanced Due Diligence?

What are the levels of customer due diligence?

There are three levels of customer due diligence: standard, simplified and enhanced..

What is enhanced due diligence checklist?

Enhanced Due Diligence (“EDD”) is additional information collected for higher-risk customers to provide a deeper understanding of customer activity to mitigate associated risks. Customer risk assessments can be used to determine which level of due diligence to apply.

What is ongoing customer due diligence?

Customer Due Diligence (CDD) information comprises the facts about a customer that should enable an organisation to assess the extent to which the customer exposes it to a range of risks. These risks include money laundering and terrorist financing.

What is the KYC process?

KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the identity of the client when opening an account and periodically over time. In other words, banks must make sure that their clients are genuinely who they claim to be.

What are the KYC requirements?

What are the requirements of the documents to be submitted for KYC?Selfie.Proof of Identity. – Identification document can be one of the following: ID card, passport or driving license. – Document should include full name, date of birth and a picture of yourself. … Proof of Address.

What is enhanced due diligence?

Enhanced due diligence (EDD) is a KYC process that provides a greater level of scrutiny of potential business partnerships and highlights risk that cannot be detected by customer due diligence. EDD goes beyond CDD and looks to establish a higher level of identity assurance by obtaining the customer’s identity and …

What is EDD and CDD?

It is a rapid fire due diligence screening process. … The second step is Customer Due Diligence (“CDD”) which requires the bank to obtain information to verify the customer’s identity and assess the risk. If the CDD inquiry leads to a high risk determination, the bank has to conduct an Enhanced Due Diligence (“EDD”).

What are the types of KYC?

There are two types of KYC: Aadhaar-based KYC. In-Person-Verification (IPV) KYC.

Which countries require enhanced due diligence?

Afghanistan, Bosnia and Herzegovina, Ethiopia, Guiana, Iraq, Iran, North Korea, Laos, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Uganda, Vanuatu and Yemen are currently listed as high-risk third countries.

What are the 3 main factors to consider in determining AML risk?

Inherent BSA/AML risk falls into three main categories: (1) products and services, (2) customers and entities, and (3) geographic location.

What is CDD in KYC?

Customer Due Diligence (CDD) or Know Your Customer (KYC) policies are the cornerstones of an effective AML/CTF program. Put simply, they are the act of performing background checks on the customer to ensure that they are properly risk assessed before being onboarded.

What are the 3 stages of money laundering?

The process of laundering money typically involves three steps: placement, layering, and integration. Placement puts the “dirty money” into the legitimate financial system.

Who requires enhanced due diligence?

When is Enhanced Due Diligence (EDD) applied? EDD is required for ‘high risk’ customers, i.e. those who are more likely to be involved in money laundering, terrorist financing or fraud-related activities.

What are the 3 components of KYC?

To create and run an effective KYC program requires the following elements: Customer Identification Program (CIP) How do you know someone is who they say they are? … Customer Due Diligence. … Ongoing Monitoring.

What is standard due diligence?

Standard due diligence requires you to identify your customer as well as verify their identity. … This due diligence should provide you with confidence that that you know who your customer is and that your service or product is not being used as a tool to launder money or any other criminal activity.