AML/CFTR 3.3.7 Payable-through accounts

(1) The rule applies if:
(a) a bank (the correspondent) has a correspondent banking relationship with a bank (the respondent) in a foreign jurisdiction; and
(b) under the relationship, a customer of the respondent who is not a customer of the correspondent may have direct access to an account of the correspondent.
(2) The correspondent must not allow the customer to have access to the account unless the correspondent is satisfied that the respondent:
(a) has conducted CDD for the customer and verified the customer's identity;
(b) conducts ongoing monitoring for the customer; and
(c) can provide to the correspondent, on request, the documents, data and information obtained in conducting CDD and ongoing monitoring for the customer.
(3) If:
(a) the correspondent asks the respondent for documents, data or information mentioned in subrule (2) (c); and
(b) the respondent fails to satisfactorily comply with the request;
the correspondent must immediately terminate the customer's access to accounts of the correspondent and consider making a suspicious transaction report to the FIU.
(4) Payable-through accounts are correspondent accounts that are used directly by third parties to transact business on their own behalf.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)