In practice
EDD can include deeper ownership checks, source of funds, license verification, site visits, test transactions and more frequent reviews. It is common for regulated or high-risk verticals such as crypto and gambling.
Common confusion
EDD is a process, not a rejection. It means the acquirer needs more evidence before deciding.
Frequently asked questions
When is enhanced due diligence required?
When risk factors such as regulated products, complex ownership, high-risk jurisdictions or prior terminations exceed what standard onboarding covers.
What does EDD involve?
Additional identity, ownership, licensing and financial checks, and often closer ongoing monitoring.