Enhanced Due Diligence (EDD)

A heightened level of customer and transaction scrutiny applied to higher-risk relationships, beyond standard checks. FATF Recommendation 10 and EU Directive 2015/849 (the Fourth Anti-Money Laundering Directive, Article 18) require enhanced measures for higher-risk situations, including politically exposed persons, complex ownership, and high-risk third countries. In shipping it means tracing the beneficial-ownership chain, screening the vessel and its counterparties, monitoring AIS for gaps, and obtaining additional documentation before clearing a charter or payment.