Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Ongoing customer due diligence and account monitoring

31 Ongoing customer due diligence and account monitoring

(1)

This section applies to a business relationship between a reporting entity and a customer.

(2)

A reporting entity must conduct ongoing customer due diligence and undertake account monitoring in order to—

(a)

ensure that the business relationship and the transactions relating to that business relationship are consistent with the reporting entity’s knowledge about the customer and the customer’s business and risk profile; and

(b)

identify any grounds for reporting a suspicious activity under paragraph (b) of the definition of that term in section 39A.

(3)

When conducting ongoing customer due diligence and undertaking account monitoring, the reporting entity must have regard to—

(a)

the type of customer due diligence conducted when the business relationship with the customer was established; and

(b)

the level of risk involved.

(4)

When conducting ongoing customer due diligence and undertaking account monitoring, a reporting entity must do at least the following:

(a)

regularly review the customer’s account activity and transaction behaviour; and

(b)

regularly review any customer information obtained under sections 15, 17, 19, 21, 23, 25, 26, 27, 29, and 30, or, in relation to an existing customer, any customer information the reporting entity holds about the customer; and

(c)

anything prescribed by regulations.

Section 31(2)(b): amended, on 11 August 2017, by section 20 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).