AML/CFTR 3.4.6 Concession for certain non-face-to-face transactions

(1) This rule applies if:
(a) a customer of a firm would normally be required to produce evidence of identity before transacting business with the firm involving the making of a payment;
(b) it is reasonable in all the circumstances for payment to be made by post or electronically, or for details of the payment to be given by telephone; and
(c) payment is to be made from an account held in the customer's name at a financial institution.
(2) However, this rule does not apply if:
(a) initial or future payments can be received from third parties;
(b) cash withdrawals can be made, unless the withdrawals can only be made by the customer on a face-to-face basis where identity can be confirmed; or

Example of exception

a passbook account where evidence of identity is required to make withdrawals
(c) redemption or withdrawal proceeds can be paid to a third party or to an account that cannot be confirmed as belonging to the customer, unless the proceeds can only be paid to an executor or personal representative on the death of the customer.
(3) If this rule applies, the firm may waive identification requirements for the customer.
(4) However, a repayment may be made to another firm only if the other firm has confirmed that the amount of the repayment is either to be paid to the customer or reinvested elsewhere in the name of the customer.
(5) This rule applies to a joint account as if a reference to the customer included a reference to any of the customers.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)