The White Paper on Enhanced Due Diligence addresses the fundamental issues and the procedure of the enhanced due diligence. This White Paper contains information derived from several HCLA research, published reports, articles, and regulations and, as such, is for information purposes only.
Due diligence procedure comprises an in-depth analysis of the customer, the nature of the business, and the respective assets to be used in the transaction, whilst assessing their compliance with relevant regulations, including the anti-money laundering (AML) compliance laws, combating the financing of terrorism (CFT) regulations, and any applicable sanctions regimes. However, this level of due diligence does not always represent a risk-averse enough license to enter into a business relationship. Therefore, extreme caution should be exercised when interacting with individuals or companies with a potentially negative track record, including the risk of engaging in activities that may be illegal or subject to certain sanctions regimes. The enhanced due diligence (EDD) procedures are designed to improve the security of any business relationship when a high-risk profile customer is involved.
This White Paper aim to highlight several key elements in the EDD process and make practical recommendations that could be implemented by the businesses in mitigation of inherent risk, to make the whole process more efficient and cost-effective.
The HCLA- Enhanced Due Diligence White Paper is available at: https://www.hclanl.org/wp-content/uploads/2021/03/Enhanced-Due-Diligence-HCLA.pdf