AML 6.1.7 AML 6.1.7
Relevant Personuses a numbered account or an account with an abbreviated name, it must ensure that:(a) such an account is used only for internal purposes;(b) it has undertaken the same Customer Due Diligenceprocedures in relation to the account holder as are required for other account holders;(c) it maintains the same information in relation to the account and account holder as is required for other accounts and account holders; and(d) staff performing AMLfunctions, including staff responsible for identifying and monitoring transactions for suspicious activity, and staff performing compliance and audit functions, have full access to information about the account and the account holder.Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]
Guidance on the customer risk assessment1. The risk assessment of a customer, which is illustrated in figure 3 above, requires a
Relevant Personto allocate an appropriate risk rating to every customer. The DFSAwould expect risk ratings to be either descriptive, such as "low", "medium" or "high", or a sliding numeric scale such as 1 for the lowest risk to 10 for the highest. Depending on the outcome of a Relevant Person'sassessment of its customer's money laundering risk, a Relevant Personshould decide to what degree CDDwill need to be performed. For a high risk customer, the Relevant Personwill need to undertake Enhanced CDD under AML section 7.4 as well as the normal CDDset out in AML section 7.3. For a low risk customer, the Relevant Personmay be able to undertake Simplified CDD in accordance with AML section 7.5. For any other customer, the Relevant Personwill be required to undertake the normal CDDset out in AML section 7.3.2. Using the RBA, a Relevant Personcould, when assessing two customers with near identical risk profiles, consider that one is high risk and the other low risk. This may occur, for example, where both customers may be from the same high risk country, but one customer may be a customer in relation to a low risk product or may be a long-standing customer of a Groupcompany who has been introduced to the Relevant Person.3. In AML Rule 6.1.4, ownership arrangements which may prevent the Relevant Personfrom identifying one or more Beneficial Ownersinclude bearer shares and other negotiable instruments in which ownership is determined by possession.
Guidance on the term "customer"4. The point at which a person becomes a customer will vary from business to business. However, the
DFSAconsiders that it would usually occur at or prior to the business relationship being formalised, for example, by the signing of a customer agreement or the acceptance of terms of business.5. The DFSAdoes not consider that a person would be a customer of a Relevant Personmerely because such person receives marketing information from a Relevant Personor where a Relevant Personrefers a person who is not a customer to a third party (including a Groupmember).6. The DFSAconsiders that a counterparty would generally be a "customer" for the purposes of this module and would therefore require a Relevant Personto undertake CDDon such a person. However, this would not include a counterparty in a transaction undertaken on a Regulated Exchange. Nor would it include suppliers of ordinary business services, for consumption by the Relevant Personsuch as cleaning, catering, stationery, IT or other similar services.7. A Representative Officeshould not have any customers in relation to its DIFCoperations.
Guidance on high risk customers [Deleted][Deleted] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]
Guidance on low risk customers [Deleted][Deleted] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]
Guidance on Shell Banks8. AML Rule 6.1.5 prohibits a
Relevant Personfrom establishing or maintaining a business relationship with a Shell Bank.A Shell Bankis a bank that has no physical presence in the country in which it is incorporated or licensed, and is not affiliated with a regulated financial Groupthat is subject to effective consolidated supervision. The DFSA does not consider that the existence of a local agent or low level staff constitutes physical presence.
Guidance on fictitious and anonymous accounts9. A
Relevant Personshould note that, in addition to the prohibition in AML Rule 6.1.6 against establishing anonymous or fictitious accounts or accounts for unknown persons, the Federal AML legislation also prohibits the creation or keeping of records of bank accounts using pseudonyms, fictitious names or numbered accounts, without the account holder's name.
Guidance on Tax Issues10. A
Relevant Personshould, when carrying out a customer risk assessment, consider and assess the tax crime risk associated with the customer and factor such risks into the overall risk assigned to that customer. Many of the factors described in AML Rule 6.1.2 on higher risk customers could also be an indicator of potential tax crimes. For example, the use of complex or unusual corporate structures, the customer's business not being located where the customer lives (without adequate explanation), unusual customer interface, or reluctance by the customer to communicate directly with the Relevant Person.11. If it is justified based on the risk assessment and where concerns arise, a Relevant Personmay wish to seek comfort from its customers by obtaining disclosures or declarations to ascertain if a legitimate explanation exists for the concerns and therefore to allay those concerns.