This document contains a general overview of the Simplified Due Diligence (SDD) provision of the EU Third Directive (Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing) and the UK Money Laundering Regulations 2007. It is designed to aid the development of a white list for carrying out SDD.
EU Third Directive allows relevant persons to rely on simplified due diligence in case their customers are based in equivalent jurisdiction for Anti-Money Laundering (AML) purposes. Furthermore, in pursuant to the provision of simplified due diligence, the EU member states have drawn up a list of third countries which are deemed to have equivalent AML regimes. The latest list was published in June 2012 and is periodically reviewed.