Which item is included as a key component of Enhanced Due Diligence (EDD)?

Which item is included as a key component of Enhanced Due Diligence (EDD)?

• A. External information review
• B. Marketing plans
• C. Product development
• D. Customer satisfaction surveys

Answer: (A)

Enhanced Due Diligence relies on gathering more information from outside the customer to confirm who they are, where their funds come from, and the purpose of the relationship. External information review is a central part of this because it brings in independent evidence beyond what the customer provides—things like public records, sanctions lists, adverse media, corporate registries, and information on beneficial ownership. This external check helps identify inconsistencies, validate legitimacy, and determine the level of ongoing monitoring required. The other activities are not tied to verifying risk or funds. Marketing plans, product development, and customer satisfaction surveys are internal business processes and do not contribute to the external corroboration and risk assessment that EDD demands.

Enhanced Due Diligence relies on gathering more information from outside the customer to confirm who they are, where their funds come from, and the purpose of the relationship. External information review is a central part of this because it brings in independent evidence beyond what the customer provides—things like public records, sanctions lists, adverse media, corporate registries, and information on beneficial ownership. This external check helps identify inconsistencies, validate legitimacy, and determine the level of ongoing monitoring required.

The other activities are not tied to verifying risk or funds. Marketing plans, product development, and customer satisfaction surveys are internal business processes and do not contribute to the external corroboration and risk assessment that EDD demands.