Enhanced Due Diligence (EDD)
Enhanced Due Diligence (EDD) is a process required under AML (Anti-Money Laundering) and CFT (Counter Financing of Terrorism) regulations to verify the legitimacy of users' activities, their source of funds, and the nature of transactions.
It is an additional layer of verification required in specific scenarios to ensure continued compliance with regulatory obligations.
When is EDD Required?
EDD is triggered in the following scenarios:
| Trigger | Applicable to |
|---|---|
| Transaction milestone threshold is reached | Onramp & Offramp |
| Suspicious activity or red flag indicator detected | Onramp & Offramp |
| User requests to increase daily limit beyond INR 20,000 (up to INR 500,000) | Onramp only |
Turnaround Time: EDD review typically takes 24-48 hours to complete. We are actively working to improve this TAT.
Documents Required for EDD
The documents required depend on the declared purpose of the user's crypto activities. Below is a breakdown of acceptable documentation for each scenario.
Onramp EDD - Documents Required
| Purpose | Documents Required |
|---|---|
| Investment | - Trade statements or investment portfolios from crypto platforms showing holdings and personal details AND - Documents showing crypto activities (ICO, staking, DeFi) OR - Last year's Income Tax Return (ITR) or Annual Information Statement (AIS) OR - Net Worth Certificate or confirmation from a financial advisor / accountant explaining investments Note - Documents (except tax statements) must be issued within the last 3 months and cover at least 1 year. Tax documents should cover the latest tax year. |
| Trading | - Account statements and trade history from all crypto platforms showing holdings, personal details, dates, assets, and transaction amounts AND - Deposit and withdrawal records AND - Proof of trading capital origin Note - Documents must be issued within the last 3 months and cover at least 1 year. |
| Payments | - Contracts, invoices, or payment receipts including your name and the recipient’s name with details of goods or services (e.g., freelancing, consulting) |
| Lending / Repayments | - Signed loan agreement or repayment declaration including names, amounts, purpose, and terms |
| Gifting | - Legally executed gift deed or signed declaration letter identifying donor, recipient, and gift purpose |
| Donations / Charity | - Official donation receipt or acknowledgment from a registered NGO in India specifying purpose and beneficiary |
| Remittance | - Signed declaration including recipient’s name, relationship, correspondence, remittance amount, and purpose (e.g., family support, education, medical expenses) |
| Legal Settlements | - Settlement agreements or legal documents involving crypto transfers (e.g., divorce, inheritance, business settlements) |
Possible EDD Failure Reasons
Important:
In accordance with the “Prohibition of Tipping Off” under FIU India’s AML/CFT guidelines, we may not be able to provide exact reasons for EDD failures.Disclosing detailed reasons could lead to users attempting to manipulate their documents or responses to bypass compliance checks.
Common Reasons for EDD Failure (For Reference Only)
The below points are for internal understanding and are not shared directly with customers:
- Submitted documents appear to be forged or edited.
- Bank statements are inconsistent with the declared source of income.
- Bank statements are inconsistent with Income Tax Return (ITR).
- Frequent cash deposits observed in the submitted bank statements.
- Bank statement provided for a different account than the one declared.
- Supporting documents do not match the declared purpose for a higher limit request.
- Frequent involvement in P2P trading activities (especially Offramp).
- Source of funds could not be ascertained from the bank statements.
- Source of funds appears suspicious.
- Law enforcement inquiries or flags raised during EDD checks.
- Suspicion that the user’s crypto account or bank account is being operated by a third party.
- Any Suspicious Activity or Red Flag Indicator is triggered.
Note: This list is non-exhaustive and subject to ongoing updates based on evolving regulatory and internal compliance standards.