• AMLG Part 4.2 AMLG Part 4.2 Know your customer — key terms

    • AMLG 4.2.1 What is ongoing monitoring?

      Ongoing monitoring, in relation to a customer of a firm, consists of:

      (a) scrutinising transactions conducted under the business relationship with the customer to ensure that the transactions are consistent with the firm's knowledge of the customer, the customer's business and risk profile, and, where necessary, the source of the customer's wealth and funds; and
      (b) reviewing the firm's records of the customer to ensure that documents, data and information collected using CDD and ongoing monitoring for the customer are kept up-to-date and relevant.
      Derived by QFCRA RM/2019-9 (as from 1st February 2020)

    • AMLG 4.2.2 Who is an applicant for business?

      An applicant for business, in relation to a firm, is a person seeking to form a business relationship, or carry out a one-off transaction, with the firm.

      Examples of applicants for business

      1 A person dealing with a firm on his or her own behalf is an applicant for business for the firm.
      2 If a person (A) is acting as agent for a principal in dealing with a firm and A deals with the firm in his or her own name on behalf of a client of the principal, A (and not the client) is an applicant for business for the firm.
      3 If an individual claiming to represent a company, partnership or other legal person applies to a firm to conduct business on behalf of the legal person, the legal person (and not the individual claiming to represent it) is an applicant for business for the firm.
      4 If a company manager or company formation agent (C) introduces a client company to a firm, the client company (and not C) is an applicant for business for the firm.
      Derived by QFCRA RM/2019-9 (as from 1st February 2020)