Montserrat Anti-Money Laundering and Terrorist Financing Code 2016: Key Requirements

Customer Due Diligence

Financial institutions in Montserrat must undertake customer due diligence measures on customers, including identifying the individual or beneficial owner of the account. This involves verifying the identity of individuals with controlling ownership interest and those who exercise control through other means.

Identify the individual or beneficial owner of the account
Verify the identity of individuals with controlling ownership interest
Determine if an individual exercises control through other means

Beneficial Owner Identification

If there is doubt about whether an individual with controlling ownership interest is the beneficial owner, or if an individual does not have a controlling ownership interest, the identity of the individual who exercises control through other means must be identified.

Financial institutions must undertake customer due diligence measures on beneficiaries of life insurance policies and investment-related insurance policies, including identifying the beneficiary and verifying their identity at the time of payout.

Identify the beneficiary
Verify the identity of the beneficiary at the time of payout

Verification Timing

Financial institutions must verify the identity of customers and beneficial owners before or during the course of establishing a business relationship or conducting transactions for occasional customers.

Relationship Information

Service providers must obtain relationship information from customers, including:

Purpose and nature of the business relationship
Type and volume of expected activity
Source of funds
Source of wealth

Politically Exposed Persons (PEPs)

Service providers must establish risk management systems to identify PEPs and ensure that no business relationship is established with a PEP unless prior approval from the board or senior management has been obtained.

These requirements are designed to prevent money laundering and terrorist financing in Montserrat by ensuring that financial institutions have adequate measures in place to verify customer identities, detect suspicious transactions, and report potential threats to the authorities.