AML/CFTR 3.3.9 Bearer negotiable instruments

(1) In this rule:
bearer negotiable instrument means:
(a) a monetary instrument in bearer form such as a traveller's cheque;
(b) a negotiable instrument, including cheque, promissory note, and money order that is either in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery;
(c) an incomplete instrument including a cheque, promissory note and money order signed, but with the payee's name omitted;
(d) a bearer share; or
(e) a share warrant to bearer.
(2) A firm must have adequate AML/CFT customer due diligence policies, procedures, systems and controls for risks related to the use of bearer negotiable instruments.
(3) Before becoming involved in or associated with a transaction involving the conversion of a bearer negotiable instrument, or the surrender of coupons for a bearer negotiable instrument for payment of dividend, bonus or a capital event, a firm must conduct enhanced CDD for the holder of the instrument and any beneficial owner.
(4) For subrule (3), the holder and any beneficial owner are taken to be customers of the firm.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)