Entire Section

  • AML 7.6 AML 7.6 Ongoing Customer Due Diligence

    • AML 7.6.1 AML 7.6.1

      (1) When undertaking ongoing Customer Due Diligence under Rule 7.3.1(1)(d), a Relevant Person must, using the risk-based approach:

      (a) monitor transactions undertaken during the course of its customer relationship to ensure that the transactions are consistent with the Relevant Person's knowledge of the customer, his business and risk rating;
      (b) pay particular attention to any complex or unusually large transactions or unusual patterns of transactions that have no apparent or visible economic or legitimate purpose;
      (c) enquire into the background and purpose of the transactions in (b);
      (d) review the adequacy of the Customer Due Diligence information it holds on customers and Beneficial Owners to ensure that the information is kept up to date, particularly for customers with a high risk rating; and
      (e) review each customer to ensure that the risk rating assigned to a customer under Rule 6.1.1(1)(b) remains appropriate for the customer in light of the money laundering risks.

      (2) A Relevant Person must carry out a review under (1)(d) and (e) periodically and at other appropriate times when a material change or event occurs relating to a customer.

      Derived from RM117/2013 [VER9/07-13]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 7.6.1 Guidance

        1. In complying with Rule 7.6.1(1)(d), a Relevant Person should undertake a periodic review to ensure that non-static customer identity documentation is accurate and up-to-date. Examples of non-static identity documentation include passport number and residential/business address and, for a legal person, its share register or list of partners.
        2. A Relevant Person should undertake a review under Rule 7.6.1(1)(d) and (e), both periodically and at other appropriate times such as when:
        a. the Relevant Person changes its CDD documentation requirements;
        b. an unusual transaction with the customer is expected to take place;
        c. there is a material change in the business relationship with the customer; or
        d. there is a material change in the nature or ownership of the customer.
        3. The degree of the on-going due diligence to be undertaken will depend on the customer risk assessment carried out under Rule 6.1.1.
        4. A Relevant Person's transaction monitoring policies, procedures, systems and controls, which may be implemented by manual or automated systems, or a combination thereof, are one of the most important aspects of effective CDD. Whether a Relevant Person should undertake the monitoring by means of a manual or computerised system (or both) will depend on a number of factors, including:
        a. the size and nature of the Relevant Person's business and customer base; and
        b. the complexity and volume of customer transactions.
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • AML 7.6.2 AML 7.6.2 Ongoing sanctions screening

      A Relevant Person must review its customers, their business and transactions against United Nations Security Council sanctions lists and against any other relevant sanctions list when complying with Rule 7.6.1(1)(d).

      Derived from RM117/2013 [VER9/07-13]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 7.6.2 Guidance

        In AMLRule 7.6.2, a "relevant sanctions list" may include U.A.E EU, U.K. HM Treasury, U.S. OFAC lists and any other list which may apply to a Relevant Person.

        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]