3.1.3 Applying EDD and other Preventive Measures
Effective from 27/9/2021Where the LFI determines a customer to be higher-risk, Article 4.2(b) of AML-CFT Decision requires that the LFI apply EDD. EDD is also required for specified higher-risk customer types, no matter their risk rating:
| • | Customers who are Politically Exposed Persons (“PEPs”) or that are owned or controlled by PEPs; | |||
| • | Customers from higher-risk jurisdictions; and | |||
| • | Customers with whom the LFI is establishing a correspondent relationship. | |||
EDD measures should be designed to mitigate the specific risks identified with particular customers. Examples of EDD measures are described below in Section 3.2.