High-Risk Customers
Apply ECDD to customers assessed as high ML/TF risk.
ECDD
Enhanced Due Diligence. Managing Higher Risks
Enhanced customer due diligence requirements under AML/CTF. Learn when ECDD is required and what measures to apply.
What is enhanced due diligence?
Enhanced customer due diligence (ECDD) involves applying additional measures to manage and mitigate higher ML/TF risks. According to AUSTRAC, higher risk customers undergo additional or deeper checks and increased monitoring compared with lower risk customers.
ECDD helps ensure you can use your resources effectively in combating, preventing and disrupting money laundering and terrorism financing.
ECDD measures
Foreign PEPs
Mandatory ECDD for foreign politically exposed persons.
Source of Funds
Collect and verify source of funds and wealth.
Increased Monitoring
More frequent and detailed transaction monitoring.
When ECDD is Required
1
You're required to submit a suspicious matter report (SMR) in relation to the customer
2
The customer or their beneficial owner is a foreign politically exposed person (PEP)
3
Your risk assessment identifies the customer as high ML/TF risk
4
Customer involves high-risk jurisdictions with weak AML regimes or sanctions
Frequently asked questions
What is enhanced due diligence?
Enhanced due diligence (EDD or ECDD) involves applying additional measures to manage and mitigate higher ML/TF risks, beyond standard customer due diligence.
When is ECDD required?
You must conduct ECDD when you're required to submit a suspicious matter report, when a customer or beneficial owner is a foreign PEP, or when the customer poses high ML/TF risk.
What does ECDD involve?
According to AUSTRAC, ECDD may include collecting more KYC information, verifying source of funds and wealth, increased monitoring, and reviewing past transactions more closely.
Related resources
Streamline your ECDD
ARCaml helps you apply enhanced due diligence measures efficiently.