The difference between Client Due Diligence (CDD) and Enhanced Due Diligence (EDD) is the risk level of the client being onboarded. CDD must be conducted prior to entering a business relationship or prior to carrying out an occasional transaction or a service. If the client appears to be low risk, CDD is sufficient. However, if during the onboarding process the client appears to be a higher risk then EDD must be applied where additional checks must be sufficed before conducting business with them. A risk-based approach (RBA) is essential when determining if a client requires CDD or EDD.