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Enhanced Due Diligence (EDD)

Enhanced Due Diligence (EDD) is an additional verification loop triggered when a user profile is flagged as High Risk during the automated risk assessment phase of onboarding.

Triggering EDD​

If the system calculates a high risk score, the standard onboarding flow pauses and triggers the EDD sub-process. Your application will receive a requirementsQuestionnaire webhook with a specific reason.

  • Webhook Reason: onboarding_edd

Requirements​

The EDD process typically requires the user to provide more specific documentation than the standard onboarding questionnaire. Common requirements include:

  1. Proof of Address (POA): A utility bill, bank statement, or government document confirming the user's residence.
  2. Source of Funds (SOF): Documentation explaining and proving the origin of the user's wealth (e.g., payslips, investment statements).
  3. Selfie: Image showing clearly the face of the user.

Requirements Loop & Compliance Review​

The EDD process is iterative. A compliance officer reviews all submitted documents and answers.

  1. Iterative Requests: If a document is unsatisfactory (e.g., expired POA) or if further clarification is needed, the compliance officer can trigger a new requirements loop.
  2. Notification: Your application will receive a new requirementsQuestionnaire webhook (Reason: onboarding_edd).
  3. New Questions: This new questionnaire may include:
    • Requests to re-upload specific documents.
    • Open-text questions requiring the user to provide written explanations.
  4. Submission: The client must complete these new requirements to proceed.

This loop repeats until the compliance officer has sufficient information to make a final assessment.

Flow​

  1. Webhook: Receive requirementsQuestionnaire (Reason: onboarding_edd).
  2. Fetch: Call GET /questionnaires/{id} to see the specific fields or open-text questions.
  3. Submit: Upload documents or provide written answers.
  4. Review: Compliance officer reviews the submission.
  5. Approved/Retry/Failed:
    • Approved: Workflow resumes towards completion.
    • Retry: A new requirementsQuestionnaire is issued (Return to Step 1).
    • Failed: Terminated via entitlementFailed.

Failure​

If the provided documents do not satisfy regulatory requirements or confirm high-risk red flags, the onboarding process will be terminated via an entitlementFailed webhook with an appropriate failure reason.