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Enhanced Due Diligence (EDD)
Learn how to perform enhanced due diligencePreview the first lesson free — get full access to all 14 lessons.
Essential Provider : KnowledgeCity 5 chapters · 14 Lessons · 51m in English, Spanish
Course Description
When ordinary due diligence isn’t enough to check whether a business deal or relationship is safe, enhanced due diligence becomes necessary. This process helps safeguard your organization by preventing it from becoming inadvertently involved in illegal conduct. Many businesses have found themselves in major legal and financial trouble because of bad deals they’ve made. Deals they could have avoided by performing enhanced due diligence and carefully evaluating their clients or customers.
In KnowledgeCity’s course on enhanced due diligence, you will learn everything you need to know to carry out this crucial process. We’ll start by providing you with a basic overview of enhanced due diligence, including what its purpose is, some relevant anti-money laundering laws you need to know, and the penalties for noncompliance. Then we’ll touch on the various risk factors that enhanced due diligence is meant to catch, helping you recognize signs of a potentially risky business relationship. Finally, we’ll describe the methods for carrying out enhanced due diligence, like how to conduct an investigation and verify clients.
What You'll Learn
- Understand the purpose of enhanced due diligence and when it becomes necessary
- Identify relevant anti-money laundering laws and regulations
- Recognize high-risk clients, legal and financial risks, and other risk factors
- Apply methods for conducting an investigation and verifying clients
- Explain how to avoid noncompliance penalties
- Use a risk-based approach including monitoring, review, and obtaining management's approval
Key Takeaways
- Enhanced due diligence is used when ordinary due diligence isn't enough to check whether a business deal or relationship is safe.
- The process helps safeguard an organization by preventing it from becoming inadvertently involved in illegal conduct.
- Businesses have faced major legal and financial trouble from bad deals they could have avoided through enhanced due diligence.
- The course covers relevant anti-money laundering laws and the penalties for noncompliance.
- Carrying out enhanced due diligence involves recognizing risk factors, conducting investigations, and verifying clients.
Frequently Asked Questions
What does this enhanced due diligence course cover?
It provides an overview of enhanced due diligence including its purpose, relevant anti-money laundering laws, and penalties for noncompliance, then covers the risk factors it is meant to catch and the methods for carrying it out, such as conducting an investigation and verifying clients.
When is enhanced due diligence necessary?
Enhanced due diligence becomes necessary when ordinary due diligence isn't enough to check whether a business deal or relationship is safe.
What will I be able to do after taking this course?
You will be able to understand relevant laws and regulations, recognize major risks, and explain how to avoid noncompliance penalties.
What skills does this course help build?
It helps build skills in investigation, due diligence, client certificates, and risk-based capital.
How is the course structured?
The course is organized into lessons covering the introduction and purpose of enhanced due diligence, anti-money laundering laws and penalties, various types of risks, and methods including conducting an investigation, verifying clients, monitoring and review, tools and practices, and obtaining management's approval.
