Enhanced Due Diligence for High-Risk Customers

B

Enhanced Due Diligence (EDD) is a set of additional measures that financial institutions implement to verify the identity of high-risk customers and assess their potential money laundering risks. EDD helps institutions to understand the nature of the customer's business, the source of their wealth, and their transactions to prevent financial crimes like money laundering, terrorist financing, and corruption.

As per the given options, the information that should be gathered as part of EDD for a high-risk customer is option B: Details on individuals with control over the account.

Option A, explanations for changes in marital status, is not directly relevant to EDD as it does not provide any insight into the customer's money laundering risks or financial activities.

Option C, plans for traveling in business trips, may be relevant in some circumstances, such as if the customer's travel plans appear suspicious or indicate potential money laundering activity. However, it is not a general requirement for EDD.

Option D, personal references, may be useful in some cases to verify the customer's identity or assess their reputation. However, it is not a specific requirement for EDD, and personal references may not always be reliable.

Therefore, for EDD of a high-risk customer, financial institutions should gather details on individuals with control over the account, such as the customer's beneficial owners, trustees, or authorized signatories. This information may include their names, addresses, dates of birth, passport or national ID numbers, and their relationship with the customer. This information helps institutions to understand the potential money laundering risks associated with the customer and their transactions, and to take appropriate risk mitigation measures.