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6.1. Conducting Customer Due Diligence
FINANCIAL SERVICES LEGISLATION
RULES
ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING AND SANCTIONS RULES
Figure 1 – The Risk Based Approach
Figure 2 – Customer Risk Assessment
Entire Act

6.1. Conducting Customer Due Diligence

6.1.1. Obligation to conduct Customer Due Diligence

A Relevant Person must:

(a) conduct CDD under AML 6.3.1 for each of its customers including when the customer is carrying out occasional transactions the value of which singularly or in several linked operations (whether at the time or later), equal or exceed USD 15,000; and

(a-a) conduct CDD under AML 6.3.1 for each of its customers including when the customer is
carrying out occasional transactions with Digital Assets the value of which singularly or in several linked operations (whether at the time or later), equal or exceed USD 1,000; and

(b) in addition to (a) and (a-a), conduct EDD under AML 7.1.1 in respect of:

(i) each customer it has assigned as high risk;

(ii) business relationships and transactions with persons from countries with high geographical risk factors.

6.1.2. Conducting Simplified Due Diligence

(a)A Relevant Person may conduct SDD in accordance with AML 8.1.1 by modifying the CDD under AML 6.3.1 for any customer it has assigned as low risk. A Relevant Person must not conduct SDD measures in specific high-risk scenarios or when there is a suspicion of money laundering;

(b)A Relevant Person must ensure that assignment of low risk is based on an adequate risk analysis and SDD is commensurate with the risk level identified.

Guidance on Customer Due Diligence

(a)A Relevant Person should conduct CDD in a manner proportionate to the customer's money laundering risks identified under Chapter 6. When the money laundering risks are identified as high, a Relevant Person must conduct EDD under Chapter 7.

(b)This means that all customers are subject to CDD under AML 6.3.1. However, for high risk customers, additional EDD measures should also be conducted under AML 7.1.1.

(c)The broad objective is that the Relevant Person should know at the outset of the relationship who its customers (and, where relevant, beneficial owners) are, where they operate, what they do and their expected level of activity. In addition to AML 6.1.1(a), a Relevant Person must obtain documents on the legal form and the powers that regulate and bind the legal person or arrangement. The Relevant Person must then consider how the profile of the customer’s financial behaviour builds up over time, allowing the Relevant Person to identify transactions or activity that may be suspicious.