8. Collecting, reporting and keeping records of information

(10) A Reporting Financial Institution must collect and report to the Competent Authority the information required by the Common Reporting Standard by way of the reporting system provided by the Competent Authority for this purpose in the manner and on dates prescribed by the AIFC Common Reporting Standard Rules.

(11) A Reporting Financial Institution must establish and implement appropriate systems and internal procedures to enable its compliance with these Regulations.

(12) A Reporting Financial Institution must keep records of the steps undertaken and any evidence relied upon for the performance of the due diligence procedures and measures to obtain those records that the Reporting Financial Institution obtains or creates for the purpose of complying with these Regulations.

(13) All records required to be kept by Reporting Financial Institutions pursuant to the provisions of these Regulations must be retained in an electronically readable format for a retention period of 6 years after the date upon which such records are created.

(14) A Reporting Financial Institution that obtains or creates records for any purpose under these Regulations, in a language other than English must, upon request, provide an English translation to the Relevant Authority.

(15) A Reporting Financial Institution must each year following the first year in which a Person becomes a Reportable Person, notify such Person of the information relating to that Person which is required to be reported under these Regulations to the Competent Authority.

9. Investigations and inspections

(16) The Relevant Authority may request information from a Reporting Financial Institution and, at all reasonable times, be permitted to enter any premises or place of business of a Reporting Financial Institution for the purposes of:

• (a) determining whether information:

(i) included in an information return made pursuant to these Regulations by the Reporting Financial Institution is correct and complete; or

(ii) not included in an information return made by the Reporting Financial Institution was correctly not included; or

• (b) examining the systems and internal procedures put in place by a Reporting Financial Institution for the purposes of ensuring compliance with its obligations under these Regulations.

(17) The Relevant Authority may require a Reporting Financial Institution to provide records, information, explanations and particulars and to give all the required assistance which it may reasonably require in connection with the administration or enforcement of these Regulations.

(18) The Relevant Authority may request information from an Account Holder that has a Reportable Account held with a Reporting Financial Institution, inclusive of (but not limited to) Accounting Records and all other records held in connection with the information or certifications provided to the Reporting Financial Institution pursuant to these Regulations, and the Relevant Authority may ask a Reporting Financial Institution to assist it to obtain such information or records from an Account Holder.

(19) Where an Account Holder does not comply in full with any request for information by the Relevant Authority under subsection (3), the Relevant Authority may order a Reporting Financial Institution to:

• (a) block or suspend transfers or payments to or from any Reportable Accounts relevant to the Account Holder; or
• (b) close any Reportable Accounts held by the Account Holder with the Reporting Financial Institution in the AIFC.

10. Appointment of Inspectors

(20) The Relevant Authority may, if it considers it necessary or desirable in the pursuit of the objectives of these Regulations, appoint one or more Inspectors to investigate the affairs of a Reporting Financial Institution and to submit such written report as the Relevant Authority may direct.

11. Powers of Inspectors to obtain information and documents

(21) If an Inspector has reason to believe that any Reporting Financial Institution may be able to give information or produce a document which is or may be relevant to an investigation relevant to the provisions of these Regulations, he may:

• (a) enter the business premises of such Reporting Financial Institution during normal business hours for the purpose of inspecting, obtaining and copying information or documents stored in any form on such premises;
• (b) require such Reporting Financial Institution to produce, or procure the production of, any books, records or other documents under its control relating to the investigation;
• (c) require such Reporting Financial Institution to give, or procure the giving of, specified information relating to the investigation;
• (d) require such Reporting Financial Institution to attend before them at specified times and on reasonable notice and answer all questions put to them relating to the investigation (a “compulsory interview”); and
• (e) require such Reporting Financial Institution to give reasonable assistance to them in connection with the investigation.

(22) Where an Inspector exercises his powers under subsection (1), he may:

• (a) require a Reporting Financial Institution to make available any relevant information stored at those premises for inspection or copying;
• (b) require a Reporting Financial Institution to convert any relevant information into a form capable of being copied; and
• (c) use the facilities of the Reporting Financial Institution, free of charge, to make copies.

(23) Where an Inspector exercises his power under subsection (1)(d) to conduct a compulsory interview, he may give a direction:

• (a) concerning who may be present;
• (b) preventing any Person present during any part of the compulsory interview from disclosing to any other Person any information provided to the interviewee or questions asked by the interviewer during the compulsory interview;
• (c) concerning the conduct of any Person present, including as to the manner in which they shall participate in the interview;
• (d) requiring the interviewee to swear an oath or give an affirmation that the answers are true to the best of his knowledge;
• (e) requiring the interviewee to answer any questions relevant to the investigation; and
• (f) requiring the interview to be audio or video recorded.

(24) A Reporting Financial Institution required under this section to answer any question which is put to such Person by an Inspector must not:

• (a) knowingly or recklessly make a statement which is false, misleading or deceptive; or
• (b) knowingly or recklessly withhold any information the omission of which makes the information which is furnished misleading or deceptive.

12. Use and effect of information and documents obtained for investigations

(25) Information given or a document produced as a result of the exercise by the Inspectors of powers under section 11 (Powers of Inspectors to obtain information and documents) is admissible in evidence in any proceedings, provided that any such information or document also complies with any requirements relating to the admissibility of evidence in such proceedings.

(26) The requirement to give, produce or procure the information or documents specified under section 11 (Powers of Inspectors to obtain information and documents) must not apply if such information or documents constitute a Privileged Communication.

(27) Other than for the purpose of these Regulations, an Inspector must not disclose a statement made by a Reporting Financial Institution in answer to any question asked pursuant to a requirement made of the Reporting Financial Institution under section 11 (Powers of Inspectors to obtain information and documents) to any individual or entity unless:

• (a) the Reporting Financial Institution consents to the disclosure; or
• (b) the Inspector is required by the Acting Law of the AIFC or AIFC Court order to disclose the statement.

(28) The Inspector may retain possession of any information and documents given to him pursuant to a requirement made under section 11 (Powers of Inspectors to obtain information and documents) for so long as is necessary:

• (a) for the purposes of the investigation to which the notice relates;
• (b) for a decision to be made about whether or not a proceeding to which the information or documents would be relevant should be commenced; or
• (c) for such a proceeding to be completed.

(29) A Reporting Financial Institution is not entitled to claim a lien on any documents as a basis for failing to comply with a requirement made under section 11 (Powers of Inspectors to obtain information and documents), or any other provision under these Regulations, but any such lien must not otherwise be prejudiced as a consequence of the Reporting Financial Institution complying with the provisions of these Regulations.

(30) Where a Reporting Financial Institution is unable to produce information or documents in compliance with a requirement made under section 11 (Powers of Inspectors to obtain information and documents), the Inspector may require the Reporting Financial Institution to state, to the best of its knowledge or belief, where the information or documents may be found and who last had possession, custody or control of the information or documents.

(31) Where the Inspector considers that, if disclosed, the fact of the issuing of a notice requiring a Reporting Financial Institution to:

• (a) produce documents;
• (b) give information;
• (c) attend a compulsory interview; or
• (d) give assistance, may hinder the investigation to which it relates, the Inspector may direct any Person who receives such notice not to disclose the receipt of a notice or any information relating to compliance therewith to any other Person, other than his legal representative under a duty of confidentiality.

(32) A Reporting Financial Institution is entitled to legal representation during the course of an investigation conducted pursuant to the provisions of these Regulations.

13. Obstruction of Inspectors

A Reporting Financial Institution must not, without reasonable excuse, engage in conduct, including without limitation the:

• (a) destruction of documents;
• (b) failure to give or produce information or documents specified by an Inspector;
• (c) failure to attend before an Inspector at a specified time and place to answer questions;
• (d) giving of information that is false or misleading; or
• (e) failure to give any assistance in relation to an investigation which the Reporting Financial Institution is able to give such assistance, that is intended to obstruct an Inspector in the exercise of any of his powers under section 11 (Powers of Inspectors to obtain information and documents).

14. Powers of the Relevant Authority to apply to AIFC Court

(33) The Relevant Authority may apply to the AIFC Court for an order to compel a Reporting Financial Institution to adhere to the provisions of these Regulations.

(34) If the AIFC Court is satisfied that an application by the Relevant Authority under subsection (1) is well founded, it may make such order as it thinks fit to ensure compliance with the provisions of these Regulations.