Section 5
of Criminal Asset Recovery Order, 2012
Section 5
(1)
Financial institutions or designated non-financial businesses and professions shall undertake identification requirements when –
(a)
establishing business relations with a customer;
(b)
carrying out transactions above the prescribed amount, includes where transactions which are carried out in a single operation or in several operations that appear to be linked;
(c)
carrying out wire transfers of $1,500 (or its equivalent in a foreign currency) or above;
(d)
there is a suspicion of money laundering or terrorist financing; or
(e)
there are doubts about the veracity and adequacy of previously obtained identification data.
Incorporating amendments until S 22/2017
(Cleancopy) NHN/Amiriah/Bb/Karimah as of 26.12.2019
*Note: amendment on page 7,75,81,123 on 11.01.2020
22
BLUV as at 11th March 2017
(2)
Financial institutions or designated non-financial businesses and professions shall, as part of their obligation under this section, identify the beneficial owner provided that the Authority may specify circumstances, such as the ownership of publicly-held corporations, in which such identification is not necessary.
(3)
Financial institutions or designated non-financial businesses and professions may rely on intermediaries or other third parties to perform identification procedures if –
(a)
there is no suspicion of money laundering or financing of terrorism;
(b)
information on the identity of each customer and beneficial owner is provided immediately on opening of the account or commencement of the business relationship; and
(c)
the financial institution or designated non-financial business and profession are satisfied that the third party –
(i)
is able to provide without delay copies of identification information and other documents relating to the obligation of due diligence upon request; and
(ii)
is established in or is subject to the jurisdiction of a country where such person is subject to requirements consistent with standards set by the FATF, and has adequate measures in place to comply with those requirements.
(4)
A third party referred in subsection (3)(c) may not claim professional privilege or a similar principle or rule with respect to the customer identification and beneficial ownership information and documentation involved.
(5)
The Authority may specify the jurisdiction of a country which fulfills the requirements of subsection (3)(c)(ii).
(6)
Notwithstanding any other provision in this subsection, financial institutions or designated non-financial businesses and professions relying on the third party has the ultimate responsibility of compliance with this Order, including all of the due diligence and reporting requirements thereof.
Incorporating amendments until S 22/2017
(Cleancopy) NHN/Amiriah/Bb/Karimah as of 26.12.2019
*Note: amendment on page 7,75,81,123 on 11.01.2020
23
BLUV as at 11th March 2017
(7)
Financial institutions or designated non-financial business and professions shall take adequate measures to address the specific risk of money laundering and financing of terrorism in the event they conduct business relationships or execute transactions with a customer that is not physically present for purposes of identification.
(8)
For the purposes of subsection (7), such measures shall ensure that the due diligence is no less effective than where the customer appears in person, and may require additional documentary evidence, or supplementary measures to verify or certify the documents supplied, or confirmatory certification from financial institutions or other documentary evidence or measures, as specified and directed by the Authority.
Information to be obtained on customers.