Enhanced Due Diligence (EDD) is used to mitigate risk of high risk customers. Which of the following is NOT listed as a common high risk customer category?

• A. Cash intensive businesses
• B. Money services businesses
• C. Marijuana related businesses
• D. Retail customers with standard card payments

Answer: (D)

Enhanced Due Diligence is applied when a customer profile presents elevated money-laundering or terrorist-financing risk. High-risk categories include cash-intensive businesses because large cash volumes are harder to trace, money services businesses due to the movement of funds across borders, and marijuana-related businesses because of legal complexities and cash-heavy operations. Retail customers with standard card payments, in contrast, typically have traceable, regulated transactions with clear customer identification, so they don’t generally require enhanced scrutiny unless other red flags appear. Therefore, retail customers with standard card payments are not a common high-risk category.