Skip to main content
Entire section Custom print Text Only Rich Text Print

Article (11)

IA-BOD-RES 10/2019
  1. In addition to the Due Diligence measures required for the ClientClient and the beneficial owner, Financial Institutions must take Due Diligence measures and continuous supervision towards the beneficiary of personal insurance policies and money making operations, including life insurance products, family takaful insurance and other investment insurance products, as soon as the beneficiary is identified or named as follows:
     
    1. As for the named beneficiary, the name of the person must be obtained, whether he/she is a natural or legal person or a legal arrangement.
       
    2. As for the beneficiary identified by category or description such as family relationship such as spouse, children or any other means such as will or estate, sufficient information about the beneficiary must be obtained to ensure that the financial institution will be able to identify the beneficiary when disbursing compensation or benefits.
       
    3. Verifying the identity of the beneficiary in the two previous cases when paying compensation or dues or exercising any rights related to those documents.
       
  2. In all cases, Financial Institutions must consider the clientClient and beneficiary of life insurance policies and family takaful insurance as risk factors when determining the applicability of enhanced due diligence procedures. Moreover, if they find that the beneficiary is a high risk legal person or arrangement, they must take enhanced due diligence measures, which must include reasonable procedures to identify and verify the beneficial owner of the policy beneficiary when paying compensation or dues or exercising any rights related to those policies.
     
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)

 

  1. In addition to the CDD measures required for the Customer and the Beneficial Owner, Financial Institutions shall be required to conduct CDD measures and ongoing monitoring of the beneficiary of life insurance policies and funds generating transactions, including life insurance products relating to investments and family Takaful insurance, as soon as the beneficiary is identified or designated as follows:
     
    1. For the beneficiary identified by name, the name of the person, whether a natural person a legal person or a legal arrangement, shall be obtained.
       
    2. For a beneficiary designated by characteristics or by class– such as a family relation like parent or child, or by other means such as will or estate – it shall be required to obtain sufficient information concerning the beneficiary to ensure that the Financial Institution will be able to establish the identity of the beneficiary at the time of the pay-out.
       
  2. In all cases – the Financial Institutions should verify the identity of the beneficiary at the time of the payout as per the insurance policy or prior to exercising any rights related to the policy. If the Financial Institution identifies the beneficiary of the insurance policy to be a high-risk legal person or arrangement, then it should conduct enhanced CDD measures to identify the Beneficial Owner of that beneficiary, legal person, or legal arrangement.