AML/CFTR 4.1.2 Overview of CDD requirements

(1) As a general rule, a firm must not establish a business relationship with a customer unless:
(a) all the relevant parties (including any beneficial owner) have been identified and verified; and
(b) the purpose and intended nature of the business expected to be conducted with the customer has been clarified.
(2) Once an ongoing relationship has been established, any regular business undertaken with the customer must be assessed at regular intervals against the expected pattern of activity of the customer. Any unexpected activity can then be examined to decide whether there is a suspicion of money laundering or terrorism financing.
(3) If the firm does not obtain satisfactory evidence of identity for all the relevant parties, the firm must not establish the business relationship or carry out a transaction with or for them and must consider making a suspicious transaction report to the FIU.
(4) This rule provides a simplified explanation of some of the customer due diligence requirements in this Chapter and is subject to the more detailed provisions of this Chapter.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)