Enhanced Due Diligence (EDD)
Enhanced Due Diligence applies additional verification and monitoring to customers or activities presenting higher compliance risk.
✦ Key Insight
Understanding Enhanced Due Diligence (EDD) helps users keep better records and ask the right compliance or tax questions before relying on a platform or filing position.
✕ Common Misconceptions
Do not assume Enhanced Due Diligence (EDD) has the same definition or treatment everywhere. Use current official guidance and qualified local advice for actual filings or compliance decisions.
Detailed Explanation
In Practice
Dig Deeper
KYC (Know Your Customer)
The identity verification process regulated platforms must complete before letting you trade or withdraw.
Travel Rule
The Travel Rule is an anti-money-laundering requirement for specified financial transfers that requires certain originator and beneficiary information to accompany or be exchanged with qualifying transfers.
Crypto Asset
A crypto asset is a digitally represented asset that uses cryptographic or distributed-ledger systems for issuance, transfer, or recordkeeping.