What does Enhanced Due Diligence for a PEP actually involve?

Detailed Explanation

Three things beyond standard due diligence. Source of wealth and source of funds — establishing how the customer's overall wealth was accumulated, and where the specific money in the relationship came from, with corroboration rather than the customer's own assertion. Ongoing monitoring calibrated to that picture, so activity inconsistent with the declared source is visible rather than merely recorded. And senior management approval to open and to continue the relationship, which puts accountability for the risk at a level that can actually accept it. Each of these has to leave documentary evidence behind, because the control is only as good as the record that it happened.