What Is EDD Compliance?

What documents do I need for EDD?

Primary DocumentsDriver license (US or foreign)Passport or passport card (US or foreign)US Permanent Resident Card (I-551)Employment Authorization Card (I-766) issued by the United States Citizenship and Immigration Services.Certificate of Naturalization (Form N-550 or N-570)Federal or state ID.More items…•Mar 19, 2021.

How do I do EDD?

To get EDD done the right way, we recommend the following steps:Step 1: Employ a Risk-Based Approach. … Step 2: Obtain Additional Identifying Information. … Step 3: Analyze the Source of Funds / Wealth and Ultimate Beneficial Ownership (UBO) … Step 4: Ongoing Transactions Monitoring. … Step 5: Adverse Media and Negative Check.More items…

What is standard due diligence?

Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.

Is AML and KYC same?

The difference between AML and KYC is that AML (anti-money laundering) is an umbrella term for the range of regulatory processes firms must have in place, whereas KYC (Know Your Customer) is a component part of AML that consists of firms verifying their customers’ identity.

What is difference between KYC and CDD?

What’s the difference between KYC and CDD? CDD (Customer Due Diligence) is the process of a business verifying the identity of its clients and assessing the potential risks to the business relationship. KYC is about demonstrating that you have done your CDD. Both KYC and CDD are integral to the AML process.

What does EDD mean in banking?

Enhanced Due DiligenceWhat is Enhanced Due Diligence | EDD? Enhanced Due diligence 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.

What is EDD screening?

Explosive Detection Dog (EDD) The olfactory is a part of the sensory system that processes smell down to parts per trillion (ppt). These sensors then allow the dog to recognize/detect the target odor’s direction. … The table below provides the average time results of canine screening.

Is CDD and KYC the same?

Besides, KYC refers to the checks performed at the beginning of the customer relationship to determine and verify that they are who they say they are. … Customer Due Diligence(CDD) is the process used by financial institutions to collect and evaluate relevant information about a customer or potential customer.

Why is EDD required?

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 CDD and EDD in KYC?

CDD aims at collecting data about customers’ identity and contact information as well as measuring their risk. EDD is used for high-risk customers, aka those who are more likely to implement related to money laundering and terrorism financing activities due to the nature of their business or transactions.

What is difference between CDD and EDD?

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 3 components of KYC?

The 3 steps of a KYC compliance frameworkCustomer Identification. Before checking a customer’s identification documents, it’s necessary to verify their and scrutinise all available information for any inconsistencies. … Customer Due Diligence (CDD) … Enhanced Due Diligence (EDD)

How can you identify a high risk customer?

Classification of High Risk CustomersCustomers linked to higher-risk countries.Customers from High Risk Business sectors.Customers who have unnecessarily complex or opaque beneficial ownership structures.Unusual account activity.Lack an obvious economic or lawful purpose.Politically Exposed Persons (PEPs)More items…

What triggers KYC?

Effective KYC involves knowing a customers identity, their financial activities and the risk they pose. Do you know your customer? At any rate, you ought to. If you’re a financial institution (FI), you could face possible fines, sanctions, and reputational damage, if you do business with a money launderer or terrorist.

How do I check the status of my EDD claim?

You can also check on the status of your unemployment claim through the EDD’s automated, self-service telephone system at 1-866-333-4606. This phone line is open 24 hours a day.

What is end to end KYC process?

The end-to-end client onboarding and engagement process starts with the initial client interaction and ends with the applicant being fully compliant and agreeing to participate in the services that the entity has offered and is permitted to deliver, with both parties operating within the framework of the law.

What does EDD stand for in money laundering?

When Must I Do Enhanced Due Diligence (EDD) In the prevention of money laundering and terrorist financing, EDD has become the standard practice. EDD is required before any business relationship or deal can be reached between two parties. This includes financial transactions or money deposits.

What is EDD process?

Enhanced Due Diligence (EDD) is the KYC process of gathering data and information to verify the identity of clients, but with additional information required to mitigate the risk associated with the client.

What are the 3 stages of money laundering?

There are usually two or three phases to the laundering:Placement.Layering.Integration / Extraction.

What are the four key elements of the KYC policy of the bank?

The KYC Policy consists of the following four key elements.Customer Acceptance Policy.Customer Identification Procedures.Monitoring of Transactions.Risk Management.

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