Due diligence stands as an important process in the business world where thorough investigations and assessments are done to understand the legal, financial, and operational aspects of a company or business opportunity. In India, due diligence is particularly crucial for various business transactions such as mergers, acquisitions, joint ventures, and investments. By conducting due diligence, organisations can make informed decisions and reduce risks effectively.
Businesses and financial institutions use customer due diligence (CDD) as a crucial process to assess the risks associated with their customers. Ensuring regulatory compliance and mitigating potential risks are the primary objectives of anti-money laundering (AML) and counter-terrorist financing (CTF) efforts.
Businesses and financial institutions use enhanced due diligence (EDD), a thorough procedure, to learn more about high-risk clients or transactions. To ensure regulatory compliance, enhance anti-money laundering (AML) and counter-terrorist financing (CTF) measures, and more fully evaluate potential risks are the main objectives of EDD.