Meeting the EDD requirement

The fact that a lawyer has collected additional documents does not, by itself, mean that EDD has been completed.

The responsible lawyer should be able to explain:

• what made the client or matter higher risk;
• what additional enquiries were undertaken;
• what information or evidence was obtained as a result;
• how the additional information reduced or otherwise managed the identified risk; and
• why Keystone remains satisfied that it is reasonable to proceed.

This analysis should be recorded within the Client and Matter Risk Assessment and any associated source of funds or source of wealth documentation.

A well-prepared narrative assessment will normally provide the strongest evidence that EDD has been applied thoughtfully and proportionately.

EDD is not a one-off event.

Where a matter is subject to enhanced due diligence, the responsible lawyer must continue to assess whether the information obtained remains consistent with their understanding of the client and matter.

Changes to ownership, control, source of funds, source of wealth, transaction structure, jurisdictional exposure or client behaviour may require further enquiries, additional approvals or escalation to the MLRO.

Clients and matters subject to EDD must remain subject to enhanced ongoing monitoring in accordance with section 4.1.33.