Standard Guidelines Anti-Money Laundering and Counter Financing ...

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Standard Guidelines Anti-Money Laundering and Counter Financing ...

STANDARD GUIDELINES ON AML/CFTUPW/GP1responsibility of customer due diligence remains with the reportinginstitution.5.7.2. In facilitating effective oversight, the relationship between thereporting institution and its intermediaries should be governed byan arrangement/agreement that clearly specifies the rights,responsibilities and expectations of all parties. At the minimum, thereporting institution must be satisfied that the intermediary: has an adequate customer due diligence process;has a reliable mechanism to verify customer identity;can provide the customer due diligence information andmake copies of the relevant documentation availableimmediately upon request; andwhere appropriate, is properly regulated and supervised bythe respective authorities.5.7.3. In addition, customer due diligence procedures should beperformed, either on the reporting institution’s own records or viacopy of records obtained from the introducing entity.5.8. Non-face-to-face Business Relationship5.8.1. The reporting institution should pay special attention inestablishing and conducting business relationship via informationcommunication technology, for example, the internet, post, fax ortelephone. Any business relationship/transaction that avoids faceto-facecontact without proper customer identification andverification may be subject to abuse by money launderers andfinanciers of terrorism in gaining access to the economic system.5.8.2. The reporting institution should only establish businessrelationship upon completion of the customer due diligenceprocess conducted through face-to-face interaction.5.8.3. The reporting institution is also required to establish appropriatemeasures for customer verification that should be as stringent asthat for face-to-face customers and implement monitoring andreporting mechanisms to identify potential money laundering andfinancing of terrorism activities.5.9. Foreign Politically Exposed Persons (PEPs)5.9.1. PEPs are foreign individuals being, or who have been, entrustedwith prominent public functions, such as heads of state orgovernment, senior politicians, senior government officials, judicialor military officials and senior executives of public organisations.5.9.2. The concern placed in dealing with PEPs lies with the possibility ofsuch PEPs abusing their public powers for their own illicit7

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