Due diligence

Due diligence refers to the verification and analysis process used to get to know a third party and assess the risks associated with a business relationship. It covers several dimensions: identity (KYC), knowledge of the company and its ultimate beneficial owners (KYB), financial analysis, and legal and reputational checks. In the context of anti-money laundering, due diligence follows a risk-based approach, with Enhanced Due Diligence (EDD) applied to politically exposed persons and high-risk situations.