6.4.1. On-going obligation

When conducting on-goingCDD under AML 6.3.1, a Relevant Person must, using the RBA:

1. (a)monitor and review 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, its business, its risk rating, and its source of funds;
2. (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;
3. (c)enquire into the background and purpose of the transactions in (b);
4. (d)periodically review the adequacy of the CDD information it holds on customers and beneficial owners to ensure that the information is kept up to date, particularly for customers with a high-riskrating;
5. (e)periodically review each customer to ensure that the risk rating assigned to a customer under AML 5.1.1(b)remains appropriate for the customer in light of the money laundering risks; and
6. (f)at appropriate times apply CDD to existing customers based on materiality and risk considering whether and when CDD has been previously conducted and the adequacy of the CDD information obtained.

Guidance on on-going Customer Due Diligence

1. (a)In complying with AML 6.4.1 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. (b)A Relevant Person should undertake a review under AML 6.4.1(d) particularly when:
3. (i)the Relevant Person changes its CDD documentation requirements;
4. (ii)an unusual transaction with the customer is expected to take place;
5. (iii)there is a material change in the business relationship with the customer; or
6. (iv)there is a material change in the nature or ownership of the customer.
7. (c)The degree of the on-going due diligence to be conducted will depend on the customer risk assessment carried out under AML 5.1.1.
8. (d)A Relevant Person’s transaction monitoring policies, procedures, systems and controls, which may be implemented by manual or automated systems, or a combination of these, 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:
9. (i)the size and nature of the Relevant Person’s business and customer base; and
10. (ii)the complexity and volume of customer transactions.