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  • FC-1.9 FC-1.9 Introduced Business from Professional Intermediaries

    • FC-1.9.1

      A conventional bank licensee may only accept customers introduced to it by other financial institutions or intermediaries, if it has satisfied itself that the financial institution or intermediary concerned is subject to FATF-equivalent measures and customer due diligence measures. Where conventional bank licensees delegate part of the customer due diligence measures to another financial institution or intermediary, the responsibility for meeting the requirements of Chapters 1 and 2 remains with the conventional bank licensee, not the third party.

      Amended: January 2018
      October 07

    • FC-1.9.2

      Conventional bank licensees may only accept introduced business if all of the following conditions are satisfied:

      (a) The customer due diligence measures applied by the introducer are consistent with those required by the FATF Recommendations;
      (b) A formal agreement is in place defining the respective roles of the licensee and the introducer in relation to customer due diligence measures. The agreement must specify that the customer due diligence measures of the introducer will comply with the FATF Recommendations;
      (c) The introducer immediately provides all necessary information required in Paragraph FC-1.2.1 or FC-1.2.7 and FC-1.1.2A pertaining to the customer's identity, the identity of the customer and beneficial owner of the funds (where different), the purpose of the relationship and, where applicable, the party/parties on whose behalf the customer is acting; also, the introducer has confirmed that the conventional bank licensee will be allowed to verify the customer due diligence measures undertaken by the introducer at any stage; and
      (d) Written confirmation is provided by the introducer confirming that all customer due diligence measures required by the FATF Recommendations have been followed and the customer's identity established and verified. In addition, the confirmation must state that any identification documents or other customer due diligence material can be accessed by the conventional bank licensee and that these documents will be kept for at least five years after the business relationship has ended.
      Amended: October 2014
      October 07

    • FC-1.9.3

      The conventional bank licensee must perform periodic reviews ensuring that any introducer on which it relies is in compliance with the FATF Recommendations. Where the introducer is resident in another jurisdiction, the conventional bank licensee must also perform periodic reviews to verify whether the jurisdiction is in compliance with the FATF Recommendations.

      Amended: October 2014
      October 07

    • FC-1.9.4

      Should the conventional bank licensee not be satisfied that the introducer is in compliance with the requirements of the FATF Recommendations, the licensee must conduct its own customer due diligence on introduced business, or not accept further introductions, or discontinue the business relationship with the introducer.

      Amended: October 2014
      October 07