Enhanced Due Diligence (EDD) is required for high-risk clients, particularly Politically Exposed Persons (PEPs), such as government officials.

Why is Option C Correct?

Government officials (PEPs) are considered higher risk due to their potential exposure to bribery or corruption.

Financial institutions must conduct extra scrutiny on their financial transactions.

EDD Requirements Include:

Detailed background checks.

Source of wealth verification.

Ongoing transaction monitoring.

Why Not Other Options?

A (Company Director) → May require due diligence but not EDD unless a PEP.

B (Corporate Client) → EDD applies if a company is in a high-risk jurisdiction.

D (High-net-worth individual) → Wealth alone does not trigger EDD unless other risk factors exist.

???? Reference: Financial Action Task Force (FATF) Guidelines, CISI Wealth & Investment Management (AML).