Anti-Money Laundering and Terrorist Financing Regulations

Customer Due Diligence Measures

Obligated entities are required to implement effective customer due diligence measures when establishing or continuing a business relationship with customers. This includes:

• Verifying Beneficial Owners: Identifying and verifying the identity of beneficial owners
• Determining Purpose and Nature: Determining the purpose and nature of the customer relationship
• Risk Assessment: Assessing any risks associated with the customer

Beneficial Ownership

Beneficial owners must be identified and their identity verified as soon as possible after establishing a business relationship. This includes:

• Assignment of Rights: Identifying beneficial owners if an insurance undertaking becomes aware of an assignment of rights under a life insurance agreement
• Verification of Identity: Verifying the identity of beneficial owners

Politically Exposed Persons (PEPs)

Obliged entities must apply enhanced customer due diligence measures when dealing with PEPs or close family members thereof. This includes:

• Senior Management Approval: Obtaining senior management approval before establishing or continuing a relationship
• Source of Wealth and Funds: Ensuring knowledge of the source of wealth and funds

Correspondent Relationships

When establishing correspondent relationships with institutions outside the EEA, obliged entities must gather sufficient information about the respondent institution to understand its business nature, reputation, and quality of supervision.

Enhanced Customer Due Diligence Measures

Obliged entities may apply enhanced customer due diligence measures when there’s a high risk of money laundering or terrorist financing. This includes:

• Additional Necessary Measures: Applying additional necessary measures to ensure knowledge of the customer, any beneficial owners, and the purpose and nature of the customer relationship

Simplified Customer Due Diligence Measures

Obliged entities may apply simplified customer due diligence measures if there’s a low risk of money laundering or terrorist financing. However, these measures cannot be applied when suspicious activity is detected.

By implementing effective anti-money laundering and terrorist financing regulations, obligated entities can reduce the risk of financial crimes and maintain a safe and secure business environment.