AML/CTF - Important customer due diligence changes

AML/CTF changes that will affect all reporting entities – 1 June 2014

The customer due diligence (CDD) requirements of the AML/CTF Rules are about to change. From 1 June 2014, reporting entities (REs) and designated business groups (DBGs) will need to take action – to either change their AML/CTF programs or to have a transition plan to compliance, or both.

The changes place more extensive obligations on RE/DBGs to:

1. identity, verify, review and update information about the beneficial owners of customers;
2. determine whether a customer or beneficial owner is a politically exposed person (PEP);
3. understand the nature and purpose of their business relationship with customers;