Enhanced Due Diligence (EDD) is an advanced process used by financial institutions to manage higher risks associated with certain customers or transactions. Unlike standard Customer Due Diligence (CDD), EDD involves a more thorough investigation to gain a deeper understanding of the customer's background, source of funds, and business activities. This heightened scrutiny is typically applied to high-risk customers, such as politically exposed persons (PEPs), businesses in high-risk industries, or transactions originating from high-risk jurisdictions. 

EDD processes include collecting additional documentation, conducting in-depth background checks, and ongoing monitoring of the customer's activities to detect any unusual or suspicious behaviour. The goal of EDD is to ensure that financial institutions have a comprehensive view of the potential risks and can take appropriate measures to mitigate them. Implementing EDD helps organisations comply with regulatory requirements, prevent financial crimes like money laundering and terrorist financing, and protect their reputation and operational integrity.