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  • Verification of Identity and Source of Funds

    • FC-1.1.1

      Islamic bank licensees must establish effective systematic internal procedures for establishing and verifying the identity of their customers and the source of their funds. Such procedures must be set out in writing and approved by the licensee's Board of Directors. They must be strictly adhered to.

    • FC-1.1.2

      Islamic bank licensees must implement the customer due diligence measures outlined in Chapters 1, 2 and 3 when:

      (a) establishing business relations with a new or existing customer;
      (b) a change to the signatory or beneficiary of an existing account or business relationship is made;
      (c) a significant transaction takes place;
      (d) there is a material change in the way that the bank account is operated or in the manner in which the business relationship is conducted;
      (e) customer documentation standards change substantially;
      (f) the Islamic bank licensee has doubts about the veracity or adequacy of previously obtained customer due diligence information;
      (g) carrying-out one-off or occasional transactions above BD 6,000, or where several smaller transactions that appear to be linked fall above this threshold; or
      (h) carrying out wire transfers irrespective of amount;
      (h) there is a suspicion of money laundering or terrorist financing.

    • FC-1.1.3

      For the purposes of this Module, "customer" includes counterparties such as financial markets counterparties, except where financial institutions are acting as principals where simplified due diligence measures may sometimes apply. These simplified measures are set out in Section FC-1.11.

    • FC-1.1.4

      The BMA's specific minimum standards to be followed with respect to verifying customer identity and source of funds are contained in Section FC-1.2. Enhanced requirements apply under certain high-risk situations: these requirements are contained in Sections FC-1.3 to FC-1.8 inclusive. Additional requirements apply where an Islamic bank licensee is relying on a professional intermediary to perform certain parts of the customer due diligence process: these are detailed in Section FC-1.10. Simplified customer due diligence measures may apply in defined circumstances: these are set out in Section FC-1.11 .