Versions

 

AML 9.2.1

An Authorised Firm proposing to have a correspondent banking relationship with a respondent bank must:

(a) undertake appropriate Customer Due Diligence on the respondent bank;
(b) as part of (a), gather sufficient information about the respondent bank to understand fully the nature of the business, including making appropriate enquiries on its management, its major business activities and the countries or jurisdictions in which it operates;
(c) determine from publicly-available information the reputation of the respondent bank and the quality of supervision, including whether it has been subject to a money laundering or terrorist financing investigation or relevant regulatory action;
(d) assess the respondent bank's AML controls and ascertain if they are adequate and effective in light of the FATF Recommendations;
(e) ensure that prior approval of the Authorised Firm's senior management is obtained before entering into a new correspondent banking relationship;
(f) ensure that the respective responsibilities of the parties to the correspondent banking relationship are properly documented; and
(g) be satisfied that, in respect of any customers of the respondent bank who have direct access to accounts of the Authorised Firm, the respondent bank:
(i) has undertaken Customer Due Diligence (including ongoing Customer Due Diligence) at least equivalent to that in Rule 7.3.1 in respect of each customer; and
(ii) is able to provide the relevant Customer Due Diligence information in (i) to the Authorised Firm upon request; and
(h) document the basis for its satisfaction that the requirements in (a) to (g) are met.
Derived from RM117/2013 [VER9/07-13]