Enhanced Due Diligence
/ɪnˈhænst duː ˈdɪlɪdʒəns/
Definitions
- (n.) A heightened investigation and assessment process used by financial institutions and other entities to thoroughly verify the identity, background, and risk posed by a client, especially in cases of politically exposed persons, high-risk countries, or unusual transactions.
The bank conducted enhanced due diligence before approving the large international transfer to a high-risk jurisdiction.
Forms
- enhanced due diligence
Related terms
See also
Commentary
Enhanced due diligence is a critical legal and compliance process that extends standard due diligence by applying more rigorous verification steps where risk factors are elevated.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.