CORRESPONDENT BANKING
Reporting entities providing banking services are required to conduct Due Diligence on their cross border correspondent banking relationship.
CUSTOMER IDENTIFICATION AND VERIFICATION
If a person opens an account, engages the services or enters into a business relationship with a reporting entity, the reporting entity must identify and verify the identity of the person.
In addition, if a person conducts a transaction though a reporting entities and the reporting entity has reasonable grounds to believe that the person is undertaking the transaction on behalf of any other person, then in addition, the reporting entity must identify and verify the identity of the other persons for whom or for show ultimate benefit, the transaction is being conducted.
Further, a reporting entity must identify and verify the identity of a customer if the reporting entity carries out an electronic funds transfer for the customer or the reporting entity suspects the customer is involved in money laundering offence or a financing of terrorism offence or the reporting entity has doubts about the veracity or adequacy of the customer identification and verification documentation or information it had previously obtained.
DUE DILIGENCE FOR WIRE TRANSFERS
Reporting entities providing wire transfer services are required to conduct Due Diligence on their wires transfers.
ONGOING CUSTOMER AND TRANSACTION DUE DILIGENCE
A reporting entity must conduct ongoing due diligence on its relationship with its customers and conduct ongoing scrutiny of any transaction undertaken by each of its customers to ensure that the transaction being conducted is consistent with the reporting entity's knowledge of the customer, the customer's business and risk profile, including where necessary, the source of funds.
A reporting entity must pay special attention to: business relations and transactions with persons in jurisdictions that do not have adequate systems in place to prevent or deter money laundering or the financing of terrorism; and electronic funds transfers that do not contain complete originator information.
A reporting entity must: examine as far as possible the background and purpose of the transactions, business relations and transfers, and record its findings in writing; and upon a request in writing by the Unit, make available such findings to the Unit or an assisting entity, to assist the Unit or the assisting entity in any investigation relating to a money laundering offence, a financing of terrorism offence or any other serious offence.