EDD for High-Risk Customers: A Step-by-Step Approach for DNFBPs

Navigating the Anti-Money Laundering (AML) compliance journey as Designated Non-Financial Businesses and Professions (DNFBPs) in the UAE is crucial due to the sector’s vulnerability to illicit financial activities. DNFBPs enter into business relationships or transact with various customers with different backgrounds and risks, which may expose them to financial crime risks associated with customers.

For this purpose, the UAE AML regulatory framework requires DNFBPs to undertake customer due diligence (CDD) measures for every customer. In addition, to safeguard a DNFBP against customer-associated high risks, the UAE AML regulations mandate Enhanced Due Diligence (EDD) measures.

This guide delves into the critical role of EDD as it is a vital step in the customer onboarding process, enabling DNFBPs to effectively combat financial crimes such as money laundering, terrorism financing, and proliferation financing (ML/FT and PF) associated with customers.  

This comprehensive guide also analyses and covers various aspects of EDD, including: 

• Understanding the meaning of EDD 

• What are High-Risk Customers  

• When should DNFBPs take EDD measures  

• A step-by-step approach for taking EDD measures  

• Challenges in implementing EDD measures  

• EDD Automation
• Consequences of failing to take EDD measures 

This guide is an effort to guide you through the EDD compliance requirement of a DNFBP in the UAE.  

Check out the guide to help your business understand the complexities of AML Compliance and help you make your way through compliance challenges when dealing with high-risk customers.