4. What is AML? 5. Difference between CDD and EDD 6. What is the meaning of Due Diligence?

Question

Accepted Answer

AML is Anti-Money Laundering, a set of laws, regulations, and procedures to prevent illegal activities like money laundering and terrorism financing.

AML is a regulatory framework that financial institutions must follow to prevent money laundering and terrorist financing.
It involves identifying and verifying the identity of customers, monitoring transactions, and reporting suspicious activities.
CDD (Customer Due Diligence) is the process of verifying the identity of a customer and assessing the risks associated with them.
EDD (Enhanced Due Diligence) is a more thorough process of CDD, used for high-risk customers.
Due Diligence is the process of investigating and verifying the information provided by a person or entity before entering into a business relationship.
It helps to identify potential risks and prevent fraud, corruption, and other illegal activities.

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