Enhanced Due Diligence (EDD)

According to ACAMS International Glossary of Key Money Laundering Terms and Acronyms, the term 'Enhanced Due Diligence (EDD)' is used by regulatory authorities in the United States and others that requires financial institutions to take additional steps of examination and caution to identify their customers and confirm that their activities and funds are legitimate. Sometimes referred to as "special due diligence".

EDD was born in the aftermath of the aspersions that were cast on the "know your customer" regu­lations proposed by the Federal Reserve Board and the Office of the Comptroller of the Currency in 1998. The regulations were withdrawn in the face of opposition by groups who believed they were an invasion on financial privacy.