My bank is asking for 'Enhanced Due Diligence' documents — what is EDD and why am I flagged?
I have had a U.S. LLC bank account at a regional bank for about two years. I am from India and my LLC does software development. Last week my bank sent me a letter requesting additional documentation under their 'Enhanced Due Diligence review.' They want updated financial statements, a list of my clients, explanation of recent large wire transfers, and copies of client contracts. I have not done anything wrong. My income comes from legitimate consulting contracts. Why is the bank doing this now, and should I be worried? Can they close my account if I do not provide everything they are asking for?
Related Questions
What KYC documents do I need to open a U.S. bank account for my foreign-owned LLC?
I am a Brazilian citizen who just formed an LLC in Florida. I have my EIN from the IRS and my Articles of Organization from the state. I tried to open a business bank account at Chase but they asked m...
My bank mentioned 'Section 312 enhanced due diligence' for my LLC's international wire transfers — what is this?
I own a foreign-owned LLC that imports goods from Southeast Asia. My LLC receives wire transfers from my personal bank account in Singapore and also sends payments to suppliers in Vietnam and Thailand...
My bank rejected my LLC account application citing 'PATRIOT Act verification failure' — what does this mean?
I am a Nigerian citizen who formed an LLC in New Mexico. I applied for a business bank account at a large national bank and was rejected. The letter says they could not complete 'customer identificati...
What is the FinCEN whistleblower program and should I be worried about former employees reporting my LLC?
I recently had a disagreement with a contractor who worked for my foreign-owned LLC. He threatened to 'report me to FinCEN' for money laundering. My LLC is a legitimate software company and I have nev...
My foreign-owned LLC collects payments from customers and pays freelancers — am I a money transmitter?
I own a foreign-owned LLC that runs a freelance marketplace platform. Clients pay my LLC for projects, and then my LLC pays the freelancers after taking a commission. A lawyer friend warned me that th...
What is a Suspicious Activity Report and can my bank file one on my LLC without telling me?
I overheard a conversation at my bank where someone mentioned 'SAR' in reference to another customer's account. I own a foreign-owned LLC and now I am paranoid. Can my bank file a Suspicious Activity ...
Do I need an AML compliance program for my foreign-owned single-member LLC?
I own a consulting LLC in Wyoming as a Canadian citizen. A friend who works in banking told me I need an 'AML compliance program' for my LLC. I looked this up and it seems like something only banks an...
What is the Bank Secrecy Act and how does it affect my foreign-owned LLC?
I recently formed a single-member LLC in Delaware as a non-resident from the UK. My accountant mentioned something about the 'Bank Secrecy Act' and said I need to be aware of it as a foreign owner. I ...
My foreign-owned LLC runs a cash-intensive business — what extra AML requirements do I face?
I am a Mexican citizen with a U.S. LLC that operates food trucks in Houston. Most of my daily revenue is cash — usually $2,000 to $5,000 per day across three trucks. I deposit cash at the bank two or ...
My LLC received a $15,000 cash deposit — will the bank file a Currency Transaction Report?
I own a foreign-owned LLC that operates a small retail store in Texas. A customer paid $15,000 in cash for a large order. When I deposited it at my bank, the teller had me fill out some extra paperwor...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
