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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 senior management and must be strictly adhered to.

      Amended: January 2020
      Amended: October 2014
      October 07

    • 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) [This Sub-paragraph was deleted in July 2018];
      (h) Carrying out wire transfers irrespective of amount; or
      (i) There is a suspicion of money laundering or terrorist financing.
      Amended: July 2018
      October 07

    • FC-1.1.2A

      Islamic bank licensees must understand, and as appropriate, obtain information on the purpose and intended nature of the business relationship.

      Added: October 2014

    • FC-1.1.2B

      Islamic bank licensees must conduct ongoing due diligence on the business relationship, including:

      (a) Scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution's knowledge of the customer, their business and risk profile, including, where necessary, the source of funds; and
      (b) Ensuring that documents, data or information collected under the CDD process is kept up-to-date and relevant, by undertaking reviews of existing records, particularly for higher risk categories of customers.
      Amended: October 2017
      Added: October 2014

    • FC-1.1.2C

      An Islamic bank licensee must also review and update the customers’ risk profile based on their level of ML/TF/PF risk upon onboarding and regularly throughout the life of the relationship. The risk management and mitigation measures implemented by a licensee must be commensurate with the risk profile of the customer or type of customer.

      Added: January 2022

    • 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.

      October 07

    • FC-1.1.4

      The CBB'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.

      October 07