KYC, CDD, and EDD Fundamentals

This lecture explains the basics of KYC and how customer onboarding works in financial institutions.

What you will learn:

• What KYC means and why it is important

• Regulatory purpose of KYC

• What Customer Identification Program (CIP) is

• Key steps in the onboarding process

• Roles involved in customer onboarding

• Why proper onboarding reduces compliance risk

This lecture focuses on verifying individual customers and detecting fake or suspicious documents.

What you will learn:

• Acceptable identity documents

• Proof of address requirements

• How to perform document verification checks

• Common fraud indicators in ID documents

• Red flags during individual onboarding

• Basic verification best practices

This lecture explains how to perform KYC for companies and understand corporate documents.

What you will learn:

• Purpose of Certificate of Incorporation

• Understanding Memorandum and Articles of Association

• Identifying directors and shareholders

• How to validate business activities

• Key corporate documents required for onboarding

• Common risks in corporate structures

This lecture explains how to identify the real owners behind companies.

What you will learn:

• What the 25% ownership threshold means

• Difference between ownership and control

• Risks of nominee shareholders

• How to map multi-layer ownership structures

• How to identify UBOs through holding companies

• Common challenges in complex structures

This lecture explains how to apply risk rating in KYC reviews.

What you will learn:

• How customer risk rating works (Low, Medium, High)

• Understanding geographic risk

• Product and service risk factors

• Delivery channel risk

• How to combine risks into one overall rating

• Why high-risk customers require enhanced checks

This lecture explains screening controls and how to identify high-risk individuals.

What you will learn:

• Overview of sanctions lists like Office of Foreign Assets Control, United Nations, and European Union

• Who Politically Exposed Persons (PEPs) are

• Difference between Domestic, Foreign, and RCA PEPs

• How adverse media screening works

• Difference between false positives and true matches

• Basic investigation steps for potential matches

This lecture explains documentation standards and audit expectations.

What you will learn:

• Importance of maintaining a clear audit trail

• Regulatory record retention requirements

• Basic data privacy principles

• Common onboarding documentation errors

• Quality review checkpoints

• How proper documentation protects the institution

This lecture explains what CDD is and how it differs from KYC. You will understand different levels of due diligence and when they apply.

What you will learn:

• Difference between KYC and CDD

• Purpose of Customer Due Diligence

• Standard Due Diligence (SDD)

• Simplified Due Diligence

• Enhanced Due Diligence (EDD)

• Situations when CDD is triggered

• Why risk level determines the depth of checks

This lecture explains how to design and apply a customer risk assessment framework.

What you will learn:

• How risk scoring methodology works

• Industry risk factors

• Geographic risk assessment

• Behavioral risk indicators

• How to design a simple risk matrix

• How to assign overall customer risk rating

This lecture focuses on analyzing where customer funds come from and checking if they are legitimate.

What you will learn:

• Definition of Source of Funds (SOF)

• Acceptable SOF documents

• How to verify legitimacy of funds

• How to review bank statements and financial records

• Common red flags in SOF

• When additional clarification is required

This lecture explains how to understand a customer’s overall wealth and financial background.

What you will learn:

• Difference between Source of Funds and Source of Wealth

• How wealth is accumulated over time

• Reviewing long-term financial profile

• Supporting documents for SOW

• Identifying inconsistencies in wealth claims

• Risk indicators in wealth assessment

This lecture explains how to monitor customers after onboarding.

What you will learn:

• What trigger events are

• Periodic review cycles

• Basics of transaction monitoring

• How to identify unusual transactions

• Risk reclassification process

• When enhanced review is required

This lecture explains common warning signs that may indicate suspicious activity.

What you will learn:

• What structuring means

• Identifying unusual cash activity

• Complex ownership without clear reason

• Risks linked to high-risk jurisdictions

• Inconsistent financial profile

• How to escalate suspicious findings properly

This lecture explains when EDD is required and why some customers need deeper checks.

What you will learn:

• Who are considered high-risk customers

• Why PEPs require enhanced review

• Risk linked to high-net-worth individuals

• Impact of sanctioned jurisdictions

• Risks in complex offshore structures

• Clear triggers for applying EDD

This lecture explains investigation methods used during enhanced due diligence.

What you will learn:

• How to perform corporate registry research

• Basics of open-source intelligence (OSINT)

• How to use media intelligence in investigations

• Methods to verify cross-border ownership

• How to identify hidden links between entities

• Best practices for documenting findings

This lecture focuses on understanding layered and offshore ownership structures.

What you will learn:

• How trust structures operate

• What shell companies are and their risks

• Why offshore holding companies are used

• How to map multi-layer ownership

• How to identify beneficial owners through layers

• Red flags in complex structures

This lecture explains how to assess country and corruption risk in EDD reviews.

What you will learn:

• Understanding Financial Action Task Force grey and black lists

• How corruption perception indicators affect risk

• Identifying sanctions exposure

• Regulatory enforcement risk in certain countries

• How jurisdiction risk impacts customer rating

• When to apply stronger controls

This lecture teaches you how to write clear, structured, and audit-ready CDD and EDD reports. You will also complete a practical case study that combines everything you learned.

What you will learn:

• How to structure a professional EDD report

• How to write a clear executive summary

• How to present risk findings in a simple way

• How to explain mitigating factors

• How to give a strong and clear final recommendation

• How to write defensible compliance notes

• Common audit findings and how to avoid them

Career Path Progression

You will understand career growth in AML:

• KYC Analyst

• CDD Analyst

• EDD Specialist

• AML Investigator

You will see how skills develop at each level.

Practical Case Study

You will complete a mini case study that includes:

• Corporate KYC review

• Customer risk scoring

• Source of Funds (SOF) review

• Source of Wealth (SOW) analysis

• Final EDD recommendation

This lecture helps you apply theory into real-world practice.