Financial Institutions Must Record Employee and Senior Manager Details in Customer Files
A new regulation has come into effect, requiring financial institutions to identify and verify individuals who hold control over businesses and assets of customers. The rule aims to ensure transparency and prevent financial crimes.
Identifying and Verifying Control Holders
According to Article 42 of the regulations, financial institutions must identify and verify persons or entities that hold control over the business and assets of customers. This includes:
- Verifying the identity of shareholders controlling the company’s businesses and assets
- Identifying their senior managers
In cases where a customer is unable to provide all necessary due diligence information, the financial institution must refuse to open an account, enter into a business relationship, or carry out a transaction (Article 44).
Opening Individual Customer Accounts
The regulations outline specific requirements for opening individual customer accounts:
- For in-person account openings:
- Customers must present one of the official documents listed in Article 5(2) of Decree No. 66/2014, considering the risk category thereof (Article 45)
- The identification process must include the customer’s name, date of birth, physical address, nature of business, source of income, level of knowledge about standard financial transactions, and any representation relationships (Article 46)
- For non-in-person account openings:
- Financial institutions must adopt customer identification procedures applicable to in-person customers
- Take enhanced due diligence measures to mitigate the risk associated with the non-resident customer (Article 49)
Customer Identification Form
The account opening form for individual customers must contain specific information, including:
- Name
- Current permanent address
- Mailing address
- Telephone and fax number
- Email address
- Date and place of birth
- Nationality
- Occupation
- Individual Taxpayer Identification Number (NUIT) (Article 48)
A legible copy of the identification document used and all documentation related to the verification of the customer’s identity must also be attached to the form.
Non-Resident Individual Customers
Non-resident individual customers applying to open an account abroad must complete a specific application form that includes:
- Name
- Permanent address
- Current address
- Telephone number and fax number
- Email address
- Date and place of birth
- Nationality
- Occupation
- Number, date of issue, and date of validity of their passport (Article 50)
Financial institutions may also request additional measures related to address verification.
Recording Employee and Senior Manager Details
The employee who led the account opening process and the senior manager who authorized it must be recorded in the customer’s file. This is a crucial step in ensuring that financial institutions are accountable for their actions and can provide accurate information to regulatory bodies if needed.
By implementing these regulations, financial institutions can ensure a higher level of transparency and accountability, which will help to prevent financial crimes and protect customers’ interests.