Financial Institutions

The following summary of the legislative requirements under the AML Act applies to Financial Institutions Every financial institution shall –
(a) When establishing a business relationship, obtain information on the purpose and nature of the business relationship,
(b) if the transacting is conducted by a natural person, adequately identify and verify the identity of the person including information relating to –
(i) the name, address and occupation of the person,
(ii) the national identity card or passport or the applicable official identifying document of the person, and take reasonable measures to establish the source of wealth and source of property of the person,
(c) if the transaction is conducted by a legal entity, adequately identify and verify its legal existence and structure, including information relating to-
(i) the name, legal form, address and directors of the entity, (ii) the principal owners and beneficiaries and control structure of the entity,
(iii) provision regulating the power to bind the entity, and verify that any person purporting to act on behalf of the customer is so authorized, and identify those person,
(d) if the customer is a public official, in addition to the requirements in paragraph(b)-
(i) have appropriate risk management system to determine whether the customer is a public official
(ii) obtain the approval of senior management before establishing a business relationship with the customer, and
(iii) conduct regular enhanced monitoring of the business relationship.
(3)Every financial institution shall take reasonable measures to ascertain the purpose of any transaction in excess of such amount as the Minister may prescribe, from time to time by notice published in the Gazette, and the origin and ultimate destination of funds involved in the transaction.
(4) Every financial institution shall, in relation to its cross –border correspondent banking and other similar relationship,
(a)adequately identify and verify the respondent institution with which it conducts such a business relationship;
(b) gather sufficient information about the nature of the business of the correspondent institution,
(c) determine from publicly available information the reputation of the person and the quality of supervision to which the correspondent institution is subject,
(d) assess the anti- money laundering and terrorist financing controls of the correspondent institution,
(e) obtain approval from senior management before establishing a new correspondent relationship,
(f) document the responsibilities of the financial institution and the correspondent institution,
(5) where the relationship is a payable-through account, a financial institution shall ensure that the institution with whom it has established the relationship –
(a)has verified the identify of, and performed on –going due diligence on such of, the customers of the institution that have direct access to accounts of the financial institution, and
(b) is able le to provide the relevant customer identification data upon request to the financial institution.
(6) where financial institution relies on an intermediary or third party to undertake its obligations under subsections (1) or(2) or to introduce business to it, it shall-
(a) immediately obtain the information and documents required by subsections (1)and (2),
(b) ensure that copies of identification data and other relevant documentation relating to the requirements in subsection(1),(2) and (3)will be made available to the intermediary or the third party upon request without delay,
(c) satisfy itself that the third party or intermediary is regulated and supervised for, has measures in place to comply with the requirements set out in section 25, 26 and 27.
(7)Subsection (1),(2) or(3) does not apply –
(a) if the transaction is part of an existing and regular business relationship with person who has already produced satisfactory evidence of identify, unless the financial institution has reason to suspect that the transaction is suspicious or unusual,
(b) if the transaction is an occasional transaction not exceeding such amount as the Minister may prescribe by notice published in the Gazette, unless the financial institution has reason to suspect the transaction is suspicious or unusual; or
(c)to such other person as the Minister may prescribe by notice published in the Gazette.

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