AML-1.11.2

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Jan 01 2020 - Dec 31 2021
Jan 01 2022

When providing correspondent account services, Capital Market Licensee, must gather sufficient information (e.g. through a questionnaire) about their respondent financial institution to understand the nature of the respondent's business. Factors to consider to provide assurance that satisfactory measures are in place at the respondent financial institution includes:

(a) Information about the respondent financial institution’s ownership structure and management;

(b) Major business activities of the respondent financial institution and its location (i.e. whether it is located in a FATF compliant jurisdiction) as well as the location of its parent (where applicable);

(c) Where the customers of the respondent financial institution are located;

(d) The respondent financial institution AML/CFT controls;

(e) The purpose for which the account will be opened;

(f) Confirmation that the respondent financial institution has verified the identity of any third party entities that will have direct access to the account without reference to the respondent financial institution (payable through account);

(g) The extent to which the respondent financial institution performs on-going due diligence on customers with direct access to the account (payable through account), and the condition of regulation and supervision in the respondent financial institution’s country (e.g. from published FATF reports). Capital Market Licensees must take into account the country where the respondent financial institution is located and whether that country abides by the FATF Recommendations when establishing correspondent relationships with foreign entities. Capital Market Licensees must obtain where possible copies of the relevant laws and regulations concerning AML/CFT and satisfy themselves that the respondent financial institution have effective customer due diligence measures consistent with the FATF Recommendations;

(h) Confirmation that the respondent financial institution is able to provide relevant customer identification data on request to the Capital Market Licensees; and

(i) Whether the respondent financial institution has been subject to a money laundering or terrorist financing investigation.

Amended: January 2022
Added: January 2020