AML/CFTR 4.6.14 Other requirements for customer identification of legal persons

(1) In addition to the customer identification documentation required for particular applicants under this Division, a firm must verify the identity of an applicant that is a legal person using reliable, independent source documents, data or information that show:
(a) the name, legal form and proof of existence of the legal person;
(b) the mandates, declarations, resolutions and other sources of power that regulate and bind the legal person;
(c) the names of the persons holding senior management positions in the legal person; and
(d) the address of the registered office of the legal person and, if different, its principal place of business.
(2) The firm must verify that any person purporting to act on behalf of the legal person is so authorised, and must identify and verify the identity of that person.
(3) The firm must:
(a) understand, and if necessary obtain information on, the purpose and intended nature of the business relationship; and
(b) understand the nature of the business of the legal person and its ownership and control structure.
(4) For subrule (3) (b), the firm must identify, and verify the identity of:
(a) the individual who is the beneficial owner of the legal person; or
(b) if no individual can be identified as the beneficial owner of the legal person (or if there is doubt that an individual is the beneficial owner) — the legal person's most senior manager.
Note Under rule 1.3.5 (1) (c) and 1.3.5 (3), the beneficial owner of a legal person is the individual who ultimately owns, or exercises effective control over, the person and includes, for a corporation:
(a) an individual who, directly or indirectly, owns or controls at least 20% of the shares or voting rights of the corporation; and
(b) an individual who, directly or indirectly, otherwise exercises control over the corporation's management.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)