Anti-Money Laundering and Countering Financing of Terrorism Act 2009

33 Reliance on other reporting entities or persons in another country

(1)

Subject to the conditions in subsection (2), a reporting entity may rely on another person (who is not an agent) to conduct the customer due diligence procedures required for customer due diligence under this Act or regulations.

(2)

The conditions are that—

(a)

the person being relied on is either—

(i)

a reporting entity; or

(ii)

a person who is resident in a country with sufficient anti-money laundering and countering financing of terrorism systems and measures in place and who is supervised or regulated for AML/CFT purposes; and

(b)

the person has a business relationship with the customer concerned; and

(c)

the person has conducted relevant customer due diligence procedures to at least the standard required by this Act and regulations and has provided to the reporting entity—

(i)

relevant identity information before the reporting entity establishes a business relationship or an occasional transaction or activity is conducted; and

(ii)

relevant verification information as soon as practicable on request by the reporting entity, but within 5 working days of the request; and

(d)

the person consents to conducting the customer due diligence procedures for the reporting entity and to providing all relevant information to the reporting entity; and

(e)

any other conditions prescribed by regulations are complied with.

(3)

Despite subsection (1), a reporting entity relying on a third party to conduct the customer due diligence procedure, and not the person carrying out the customer due diligence procedure, is responsible for ensuring that customer due diligence is carried out in accordance with this Act.

(3A)

However, a reporting entity relying on a third party to conduct the customer due diligence procedure is not responsible for ensuring that customer due diligence is carried out in accordance with this Act if the following conditions are met:

(a)

the reporting entity is acting in good faith when relying on a third party; and

(b)

the reporting entity has reasonable cause to believe the reporting entity that is relied on has conducted relevant customer due diligence procedures to at least the standard required by this Act and regulations; and

(c)

the reporting entity being relied on is an approved entity or is within an approved class of entities; and

(d)

the conditions (if any) prescribed by regulations are complied with.

Section 33(2)(c)(i): amended, on 11 August 2017, by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 33(2)(c)(ii): amended, on 11 August 2017, by section 22(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 33(3A): inserted, on 11 August 2017, by section 22(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).