Due diligence is virtual data room pricing what you need to know required when a customer or a business has a greater risk of money laundering, terrorist financing, and other financial crimes. This is referred to as enhanced due diligence, that goes beyond the normal KYC/AML checks and gathers information that isn’t part of the basic scope.
This includes identifying the people and entities that have a connection to customers, like the ultimate beneficial ownership (UBO) to discover the source of wealth or funds, as well as business activity. It also examines the relationships behind them and investigates unexplained transactions and activities that may indicate hidden risks.
It’s an important component in the fight against the financing of terrorists and criminals. It’s crucial to remember that EDD is a measure which should be applied on a case by case basis. For instance an UK bank account opening with a clean passport, a solid address history and no CCJs could only require CDD, while another customer might require EDD due to the high quantity of cash deposits or the complexity of transactions.
The best way to determine if EDD is needed is to create a comprehensive risk analysis and screening framework. That should cover both your internal controls and external factors like adverse media and political instability, sanctions, terrorism finance, organized crime, money laundering and fraud.
Effective due diligence doesn’t rely on only meeting regulatory requirements or safeguarding brand reputation. It’s about making a real impact in the fight against criminality in the world. To do that you require a speedy, accurate and cost-effective identity verification and EDD solution.