Which of the following is NOT a component of Enhanced Due Diligence (EDD)?

Enhanced Due Diligence (EDD) is a process that involves taking extra steps to assess and mitigate risks associated with high-risk clients. It includes several critical components designed to ensure a thorough understanding of a customer's identity, their activities, and the potential risks involved with maintaining the relationship.

In-depth customer identity verification is essential in EDD, as it demands a rigorous check of the customer’s identity through various means. This is to ascertain that the customer isn’t involved in illicit activities or presenting a heightened risk.

Frequent updates to customer data also play a vital role in EDD. This ensures that the information held about customers remains current, reflecting any changes in their circumstances that may affect their risk profile.

The assessment of the customer's risk profile is a fundamental aspect of EDD. It entails evaluating factors such as the customer's business activities, geographical location, and transaction patterns to determine the potential risk they pose.

Conversely, basic account monitoring typically involves routine surveillance of account activity without the heightened scrutiny applied in EDD. While basic monitoring is essential for all accounts, it does not include the extensive procedures associated with Enhanced Due Diligence required for high-risk customers. Thus, it is not classified as a component of EDD.