Article (19)
IA-BOD-RES 10/2019- Taking into account the countries that the Committee identifies as high risk and the countries that suffer from weaknesses in AML/CFT systems, the Financial Institutions and the Designated Non-Financial Businesses and Professions may rely on a third party to carry out Client Due Diligence (CDD) in accordance with the third part of the first section of this chapter. The financial institution and the Designated Non-Financial Businesses and Professions shall be responsible for the validity of these measures, and shall do the following:
- Immediately obtain the identification data and necessary information collected during the Client Due Diligence (CDD) measures from the third party, and ensure that copies of the necessary documents for these measures can be obtained without delay upon request.
- Ensure that the third party is subject to regulation and control, and complies with the requirements of Client Due Diligence and keeps the registers provided for in this Decision.
- Immediately obtain the identification data and necessary information collected during the Client Due Diligence (CDD) measures from the third party, and ensure that copies of the necessary documents for these measures can be obtained without delay upon request.
- The financial institution and the Designated Non-Financial Businesses and Professions that that engage a third party who is part of the same Financial Group shall ensure the following:
- Ensure that the Group applies the Client Due Diligence Measures towards Clients and Politically Exposed Persons, that records are kept and that anti-Crime programmes are implemented in accordance with Parts 3, 4 and 11 of Section 1 of this Chapter and Article (31) of this Decision; .
- Sufficiently reduce any high risks related to countries through the Group-related anti-Crime policies and controls.
- Ensure that the Group applies the Client Due Diligence Measures towards Clients and Politically Exposed Persons, that records are kept and that anti-Crime programmes are implemented in accordance with Parts 3, 4 and 11 of Section 1 of this Chapter and Article (31) of this Decision; .
This article has been amended by Cabinet Resolution No. (24) of 2022. You are viewing the latest version. To view the previous version, click the version box below.
Version 1(effective from 10/02/2019 to 01/04/2022)
- Taking into consideration the high-risk countries identified by the Committee, the Financial Institutions and DNFBPs shall be permitted to rely on a third party to undertake the necessary CDD measures towards Customers as per Section 3 of Part 1 of this Chapter, and each of the Financial Institution and the DNFBP shall be responsible for the validity of these CDD measures, and shall do the following:
- Immediately obtain, from third parties, the necessary identification data and other necessary information collected through the CDD measures and ensure that copies of the necessary documents for such measures can be obtained without delay and upon request.
- Ensure that the third party is regulated and supervised, and adheres to the CDD measures towards Customers and record-keeping provisions of the present Decision.
- Immediately obtain, from third parties, the necessary identification data and other necessary information collected through the CDD measures and ensure that copies of the necessary documents for such measures can be obtained without delay and upon request.
- Financial Institutions and DNFBPs, who rely on third parties that are part of the same Financial Group,shall ensure that:
- The Financial Group applies the CDD, PEP, and record-keeping requirements and implements programs for combating the Crime in accordance with Sections 3, 4, 11 of Part 1 of this Chapter and Article (31) of this Decision, and the Financial Group is subject to supervision in that regard.
- The Financial Group sufficiently mitigates any high risks linked to countries through its own policies and controls for combating the Crime.
- The Financial Group applies the CDD, PEP, and record-keeping requirements and implements programs for combating the Crime in accordance with Sections 3, 4, 11 of Part 1 of this Chapter and Article (31) of this Decision, and the Financial Group is subject to supervision in that regard.