PART 2CUSTOMER DUE DILIGENCE
Application of customer due diligence measures7
1
Subject to regulations 9, 10, 12, 13, 14, 16(4) and 17, a relevant person must apply customer due diligence measures when he—
a
establishes a business relationship;
b
carries out an occasional transaction;
c
suspects money laundering or terrorist financing;
d
doubts the veracity or adequacy of documents, data or information previously obtained for the purposes of identification or verification.
2
Subject to regulation 16(4), a relevant person must also apply customer due diligence measures at other appropriate times to existing customers on a risk-sensitive basis.
3
A relevant person must—
a
determine the extent of customer due diligence measures on a risk-sensitive basis depending on the type of customer, business relationship, product or transaction; and
b
be able to demonstrate to his supervisory authority that the extent of the measures is appropriate in view of the risks of money laundering and terrorist financing.
4
Where—
a
a relevant person is required to apply customer due diligence measures in the case of a trust, legal entity (other than a body corporate) or a legal arrangement (other than a trust); and
b
the class of persons in whose main interest the trust, entity or arrangement is set up or operates is identified as a beneficial owner,
the relevant person is not required to identify all the members of the class.
5
Paragraph (3)(b) does not apply to the National Savings Bank or the Director of Savings.