Which item is included as a key component of Enhanced Due Diligence (EDD)?

• A. External information review
• B. Marketing plans
• C. Product development
• D. Customer satisfaction surveys

Answer: (A)

Enhanced Due Diligence strengthens risk assessment by pulling in information from outside sources to get a fuller picture of a customer. External information review is the essential piece because it looks beyond internal data to verify ownership, legitimacy, and potential connections to high-risk activities. It involves checking third-party data, public records, adverse media, sanctions lists, and other reliable sources to uncover risks that internal documents might miss and to support ongoing monitoring of the relationship.

Marketing plans, product development, and customer satisfaction surveys are internal business documents focused on strategy, offerings, and client experience. They don’t serve the risk-verification and ongoing monitoring purpose that Enhanced Due Diligence emphasizes.