AML/CFTR 4.2.3 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 (for example, as an authorised manager of a discretionary investment service for clients) 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 a person (B) provides funds to a firm and wants an investment purchased with the funds to be registered in the name of another person (for example, a grandchild), B (and not the other person) is an applicant for business for the firm.
4 If an intermediary introduces a client to a firm as a potential investor and gives the client's name as the investor, the client (and not the intermediary) is an applicant for business for the firm.
5 If a person seeks advice from, or access to an execution-only dealing service with, a firm in his or her own name and on his or her own behalf, the person is an applicant for business for the firm.
6 If a professional agent introduces a third party to a firm so the third party can be given advice or make an investment in his or her own name, the third party (and not the professional agent) is an applicant for business for the firm.
7 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.
8 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.
9 If a trust is introduced to a firm, the settlor of the trust is an applicant for business for the firm.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)