Financial Crime World

Due Diligence Procedures Emphasized by Bouvet Island Financial Institutions

Bouvet Island’s financial institutions are taking a proactive approach to prevent money laundering and terrorist financing by doubling down on due diligence procedures for intermediaries. This effort is in line with the European Parliament’s Directive 2015/849, which requires member states to implement Anti-Money Laundering (AML) regulations.

Strict AML Regulations

Bouvet Island’s banks are adhering to strict AML regulations, including customer due diligence measures. These regulations aim to prevent anonymous accounts and passbooks from being used in any way.

Key Elements of Customer Due Diligence Measures

  • Identifying the Customer: Verifying the identity of the customer through documents, data, or information obtained from a reliable source.
  • Identifying the Beneficial Owner: Taking reasonable measures to verify the identity of the beneficial owner to ensure that the obligated entity knows who the beneficial owner is.
  • Assessing the Business Relationship: Obtaining information on the purpose and intended nature of the business relationship.
  • Ongoing Monitoring: Conducting scrutiny of transactions undertaken throughout the course of that relationship.

Importance of Due Diligence Procedures

Bouvet Island’s financial institutions emphasized the importance of due diligence procedures for intermediaries. “Upon receipt of an application from the ‘indirect’ channel, our Reference Data should have better quality,” they said. “More details about roles and responsibilities with intermediary will be provided in special agreements.”

When Intermediary Banks take part in the vetting process, a signed Legal Entity Assertion is required from the Bank Specialist to verify the identity of the customer and beneficial owner.

Vetting Specialist’s Role

The Vetting Specialist considers the Reference Data reliability according to the source and can carry out less checks. Bouvet Island’s financial institutions have pledged to uphold AML regulations and ensure that due diligence procedures are carried out effectively.