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  • Verification of Identity and Source of Funds

    • AML-1.1.1

      Capital Market 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 Capital Market Licensees senior management and must be strictly adhered to.

      Amended: January 2022
      Amended: January 2020
      Amended: July 2016
      Added: October 2010

    • AML-1.1.2

      Capital Market Licensees must implement the customer due diligence measures outlined in Chapter AML-1 when:

      (a) [This Sub-paragraph was deleted in July 2018];
      (b) Establishing business relations with a new or existing customer;
      (c) A change to the signatory or beneficiary of an existing account or business relationship is made;
      (d) Customer documentation standards change substantially;
      (e) The Capital Market Licensees has doubts about the veracity or adequacy of previously obtained customer due diligence information;
      (f) A significant transaction takes place (as per rule AML-2.2.3);
      (g) There is a material change in the way that an account is operated or in the manner in which the business relationship is conducted;
      (h) There is a suspicion of Money Laundering or terrorist financing; or
      (i) Carrying out accepted crypto-assets transfers and/or wire transfers irrespective of value and/or amount.
      Amended: January 2022
      Amended: January 2020
      Amended: July 2018
      Added: October 2010

    • AML-1.1.2A

      Capital Market Licensees must understand, and as appropriate, obtain information on the purpose and intended nature of the business relationship.

      Amended: January 2022
      Added: October 2017

    • AML-1.1.2B

      Capital Market 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: January 2022
      Added: October 2017

    • AML-1.1.2C

      A capital market 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 capital market licensee must be commensurate with the risk profile of the customer or type of customer.

       

      Added: January 2022

    • AML-1.1.3

      For the purposes of this Module, 'customer' includes counterparties such as financial markets counterparties, except where Capital Market Licensees are acting as principals where simplified due diligence measures may apply. These simplified measures are set out in section AML-1.10.

      Amended: January 2022
      October 2010

    • AML-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 AML-1.2. Enhanced requirements apply under certain high-risk situations: these requirements are contained in sections AML-1.3 to AML-1.7 inclusive. Additional requirements apply where a Capital Market Licensee is relying on a professional intermediary to perform certain parts of the customer due diligence process: these are detailed in section AML-1.8. Simplified customer due diligence measures may apply in defined circumstances: these are set out in section AML-1.10.

      Amended: January 2022
      October 2010