Financial Crime World

Anguilla’s Strict AML-KYC Regulations: Identity Verification and Due Diligence Measures

Anguilla, a British Overseas Territory in the Caribbean, has rigorous Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations to prevent and detect financial crimes. This article outlines the essential requirements for AML and Know Your Customer (KYC) procedures focusing on Identity Verification in Anguilla, based on the “Anguilla-AML KYC Regulations” and the “Proceeds of Crime Act.”

1. Introduction

Anguilla’s legislation criminalizes money laundering and establishes guidelines for legal and natural persons. The objective is to prevent and detect financial crimes, ensuring financial institutions and their clients comply with AML and KYC requirements. Identity verification is a necessary aspect of these regulations.

2. Scope

This article serves as a comprehensive reference, outlining the essential AML and KYC requirements for Identity Verification in Anguilla, as per relevant laws, regulations, and guidelines.

3. Definitions

The following definitions apply throughout this article:

  • Client: Shufti Pro’s customer.
  • Customer: The client’s customer undergoing KYC checks.
  • End-user: The client’s customer from Shufti Pro’s perspective.
  • Document Verification: The process of verifying the authenticity of a government-issued identity document.
  • Identity Verification: The process of verifying the identity of the client’s customers.
  • Proof of Identity: Any government-issued identity document that can be used to identify an individual.
  • EDD: Enhanced Due Diligence (EDD).
  • Third-Party Diligence: Outsourcing due diligence activities to an external party.
  • PEP: Politically Exposed Person.
  • Due Diligence: The measures taken to mitigate risks before entering into agreements or carrying out financial transactions with another party.

4. Required Documents for Identity Verification

For natural persons, relevant documentation includes:

  • Full name
  • Date of birth
  • Principal residential address

5. Identity Verification Methods

Identity Verification methods in Anguilla may include:

  • Document Verification: Utilizing specialized services to check document authenticity.
  • Video Verification: Conducting live, interactive sessions with the End-user for real-time verification.

6. Enhanced Due Diligence (EDD) Measures

Anguilla’s regulations mandate determining if a Customer is a PEP, holds a public office, or exhibits a higher-risk profile. Shufti Pro offers an AML Screening service to help clients fulfill their obligations by checking selected ID attributes against global regulatory authorities’ watchlists and databases.

7. Third-Party Diligence

Clients might seek the services of a third party to apply due diligence measures, but they still remain liable for maintaining AML and KYC compliance.

8. Record Retention

Anguilla’s regulations require retaining customer data for a minimum of five years as part of due diligence obligations. If the information is processed, collected, and managed by a relevant third party, clients are responsible for obtaining all necessary Due Diligence Data without undue delay.

Conclusion

Anguilla’s stringent AML-KYC regulations emphasize Identity Verification and due diligence measures, ensuring both financial institutions and their clients adhere to the necessary guidelines for preventing and detecting financial crimes.