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  • FC-1.8 FC-1.8 Introduced Business from Professional Intermediaries

    • FC-1.8.1

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

      Amended: January 2018
      Amended: July 2010

    • FC-1.8.2

      Investment firm 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 Paragraphs 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 relationship and, where applicable, the party/parties on whose behalf the customer is acting; also, the introducer has confirmed that the 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 licensee and that these documents will be kept for at least five years after the business relationship has ended.
      Amended: October 2014
      Amended: July 2010
      Amended: January 2007

    • FC-1.8.3

      The 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 licensee must also perform periodic reviews to verify whether the jurisdiction is in compliance with the FATF Recommendations.

      Amended: October 2014
      Amended: July 2010
      Amended: January 2007

    • FC-1.8.4

      Should the 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
      Amended: July 2010
      Amended: January 2007