Enhanced Due Diligence (EDD) is typically carried out when certain factors indicate a higher level of risk with a customer:
- High-value transactions: Involving large sums of money or assets.
- Politically Exposed Persons (PEPs): Individuals holding prominent public roles or those closely associated with them.
- Customers from high-risk regions: Areas known for financial crime, corruption, or terrorism.
- Complex ownership structures: Businesses with intricate or unclear ownership arrangements.
- Unusual or suspicious activity: Transactions or behaviours that deviate from the norm and raise concerns of potential illicit activity.
EDD is also triggered when players exceed specified deposit thresholds within a given timeframe.
When EDD is required, L&L Europe will conduct a more detailed investigation, which may include:
- Collecting additional documentation: Requesting further information about the customer or transaction.
- Verifying the source of funds: Confirming the origin of the customer’s funds or wealth.
- Assessing the nature and purpose: Understanding the reasons behind the business relationship or transaction.
- Identifying red flags: Looking for any indicators of suspicious activity.
- Ongoing monitoring: Continuously reviewing and tracking customer accounts or transactions.
The purpose of EDD is to strengthen risk management, prevent financial crime, and ensure compliance with regulations such as anti-money laundering (AML) and counter-terrorism financing (CTF). By conducting thorough due diligence, L&L Europe protects itself from potential legal, financial, and reputational risks.
For further information regarding this process, click here to view the UKGC's article regarding Enhanced Due Diligence.