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  • AML 8.1 Reliance on a third party

    • AML 8.1.1

      (1) A Relevant PersonG may rely on the following third parties to conduct one or more elements of Customer Due DiligenceG on its behalf:
      (a) an Authorised PersonG ;
      (b) a law firm, notary, or other independent legal business, accounting firm, audit firm or insolvency practitioner or an equivalent person in another jurisdiction;
      (c) a Financial InstitutionG ; or
      (d) a member of the Relevant Person'sG Group.
      (2) In (1), a Relevant PersonG may rely on the information previously obtained by a third party which covers one or more elements of Customer Due DiligenceG .
      (3) Where a Relevant PersonG seeks to rely on a person in (1) it may only do so if and to the extent that:
      (a) it immediately obtains the necessary Customer Due DiligenceG information from the third party in (1);
      (b) it takes adequate steps to satisfy itself that certified copies of the documents used to undertake the relevant elements of Customer Due DiligenceG will be available from the third party on request without delay;
      (c) if a person in (1)(b) to (d) is in another country, the person is:
      (i) subject to requirements in relation to customer due diligence and record keeping which meet the standards set out in the FATFG Recommendations; and
      (ii) supervised for compliance with those requirements in a manner that meets the standards for regulation and supervision set out in the FATFG Recommendations;
      (d) the person in (1) has not relied on any exception from the requirement to conduct any relevant elements of Customer Due DiligenceG which the Relevant PersonG seeks to rely on; and
      (e) in relation to (2), the information is up to date.
      (4) Where a Relevant PersonG relies on a member of its GroupG , such GroupG member need not meet the condition in (3)(c) if:
      (a) the GroupG applies and implements a GroupG -wide policy on customer due diligence, record keeping, Politically Exposed PersonsG and AMLG programmes which meets the standards set out in the FATFG Recommendations; and
      (b) where the effective implementation of those Customer Due Diligence, record keeping and PEPG requirements and AMLG programmes are supervised at GroupG level by a Financial Services RegulatorG or other competent authority in a country, the supervision and regulation meets the standards set out in the FATFG Recommendations.
      (5) If a Relevant PersonG is not reasonably satisfied that a customer or Beneficial OwnerG has been identified and verified by a third party in a manner consistent with these Rules, the Relevant PersonG must immediately perform the Customer Due DiligenceG itself with respect to any deficiencies identified.
      (6) Notwithstanding the Relevant Person'sG reliance on a person in (1), the Relevant PersonG remains responsible for compliance with, and liable for any failure to meet the Customer Due DiligenceG requirements in this module.
      Derived from RM117/2013 [VER9/07-13]
      [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
      [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

      • AML 8.1.1 Guidance

        1. In complying with AML Rule 8.1.1(3)(a), "immediately obtaining the necessary CDDG information" means obtaining all relevant CDDG information, and not just basic information such as name and address. Compliance can be achieved by having that relevant information sent by email or other appropriate means. For the avoidance of doubt, a Relevant PersonG is not required automatically to obtain the underlying certified documents used by the third party to undertake its CDDG . A Relevant PersonG must, however, under AML Rule 8.1.1(3)(b) ensure that the certified documents are readily available from the third party on request.
        2. The DFSAG would expect a Relevant PersonG , in complying with AML Rule 8.1.1(5), to fill any gaps in the CDDG process as soon as it becomes aware that a customer or Beneficial OwnerG has not been identified and verified in a manner consistent with these Rules.
        3. If a Relevant PersonG acquires another business, either in whole or in part, the DFSAG would permit the Relevant PersonG to rely on the CDDG conducted by the business it is acquiring but would expect the Relevant PersonG to have done the following:
        a. as part of its due diligence for the acquisition, to have taken a reasonable sample of the prospective customers to assess the quality of the CDDG undertaken; and
        b. to undertake CDDG on all the customers to cover any deficiencies identified in a. as soon as possible following the acquisition, prioritising high risk customers.
        4. Where a particular jurisdiction's laws (such as secrecy or data protection legislation) would prevent a Relevant PersonG from having access to CDDG information upon request without delay as referred to in AML Rule 8.1.1(3)(b), the Relevant PersonG should undertake the relevant CDDG itself and should not seek to rely on the relevant third party.
        5. If a Relevant PersonG relies on a third party located in a foreign jurisdiction to conduct one or more elements of CDD on its behalf, the Relevant PersonG must ensure that the foreign jurisdiction has AML regulations that are equivalent to the standards in the FATFG Recommendations (see AML Rule 8.1.1(3)(c) and AML Rule 8.1.2).
        Derived from RM117/2013 [VER9/07-13]
        [Amended] DFSA RM196/2016 (Made 7th December 2016). [VER13/02-17]
        [Amended] DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]

    • AML 8.1.2

      (1) When assessing under AML Rule 8.1.1(3)(c) or (4) if requirements, supervision or regulation in another jurisdiction meet FATFG standards, a Relevant PersonG must take into account factors including, among other things:

      (a) mutual evaluations, assessment reports or follow-up reports published by FATFG , the IMFG , the World Bank, the OECDG or other International Organisations;
      (b) membership of FATFG or other international or regional groups such as the MENAFATFG or the Gulf Co-operation Council;
      (c) contextual factors such as political stability or the level of corruption in the jurisdiction;
      (d) evidence of recent criticism of the jurisdiction, including in:
      (i) FATFG advisory notices;
      (ii) public assessments of the jurisdiction's AMLG regime by organisations referred to in (a); or
      (iii) reports by other relevant non-government organisations or specialist commercial organisations; and
      (e) whether adequate arrangements exist for co-operation between the AML regulator in that jurisdiction and the DFSAG .

      (2) A Relevant PersonG making an assessment under (1) must rely only on sources of information that are reliable and up-to-date.

      (3) A Relevant PersonG must keep adequate records of how it made its assessment, including the sources and materials considered.

      Derived from DFSA RM231/2018 (Made 6th June 2018) [VER15/07-18]