Complete third-party intelligence. In under five minutes.

Under the AML/CTF Act’s risk-based approach, enhanced customer due diligence is required when a client relationship presents a high money laundering or terrorism financing risk. Key triggers include: the client or a beneficial owner is a foreign Politically Exposed Person (PEP), or a domestic or international organisation PEP assessed as high risk, or a family member or close associate of one; the client is connected to a high-risk jurisdiction, including countries subject to an FATF call for action; the transaction or business relationship involves an unusual or complex ownership structure without clear commercial rationale; the source of wealth or funds cannot be readily established through standard CDD; the business involves high-risk products or delivery channels; or an existing client’s circumstances change materially, raising their risk rating. EDD may also be warranted when account activity is inconsistent with the client’s known profile. KYCopilot’s EDD reports are structured to document your response to each trigger, with source-cited evidence and a risk rationale that supports your AML/CTF program.

The AML/CTF Act’s risk-based approach creates three tiers of customer due diligence, each proportionate to the risk the relationship presents. Simplified CDD applies to clients and products assessed as genuinely low-risk — a reduced identification and verification process is permitted. Standard CDD applies to the majority of business relationships, requiring full identity verification, understanding of the nature and purpose of the relationship, and ongoing scrutiny commensurate with the risk level. Enhanced Due Diligence applies to high-risk relationships — including foreign PEPs, high-risk domestic PEPs, clients connected to high-risk jurisdictions, and complex or opaque corporate structures — requiring deeper investigation, source of wealth documentation, senior management approval in applicable cases, and more frequent review. KYCopilot operates at the EDD tier, generating comprehensive intelligence reports for the relationships that carry the highest regulatory scrutiny burden.

Your AML/CTF program must show not only that enhanced due diligence was conducted, but that its substance was sufficient for the risk level identified. A well-documented EDD record should include: verified identity details of the client and key controllers; screening outcomes across sanctions, PEP and adverse media databases with full source citations; a documented risk rationale explaining the risk rating and the basis for accepting or declining the relationship; source of wealth and source of funds evidence where applicable; a country risk assessment where geographic exposure is relevant; court and litigation record checks; and the identity of the person who reviewed and approved the assessment. KYCopilot’s reports address each of these elements in a single exportable document — including AI-generated narrative, match confidence ratings, source links and actionable compliance recommendations.

The AML/CTF Act generally requires reporting entities to keep customer due diligence records — including EDD reports, identity verification documents and supporting evidence — for seven years after the business relationship ends. AUSTRAC can request access to these records, and failing to produce them is a compliance breach in its own right, independent of any substantive due diligence failure. KYCopilot EDD reports are fully exportable as structured documents, making it straightforward to archive them against your record-keeping obligations from the day the report is generated.