Reinforced KYC/EDD (Enhanced Due Diligence)

Reinforced KYC, or EDD (Enhanced Due Diligence), is the most demanding level of vigilance. It applies mandatorily in the cases the regulation designates, notably politically exposed persons and relationships involving a high-risk third country, and at the institution's own decision where its assessment concludes that the risk is high. In concrete terms, it adds to the standard checks the verification of the source of funds and of wealth, the collection of additional supporting documents, sign-off by a higher level of management and more frequent reassessment. It stands in contrast to simplified vigilance, which lightens the checks without ever removing them.