INSTRUCTIONS & RESPONSIBILITIES
Banks are pursuing a KYC policy (KNOW-YOUR-CUSTOMER) and they comply with Anti Money-Laundering regulation.
In particular, the Directive (Eu) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, articles 10, 13 and 14, includes:
Member States shall prohibit their credit institutions and financial institutions from keeping anonymous accounts or anonymous passbooks. Member States shall, in any event, require that the owners and beneficiaries of existing anonymous accounts or anonymous passbooks be subject to customer due diligence measures as soon as possible and in any event before such accounts or passbooks are used in any way.
Customer due diligence measures shall comprise:
(a) identifying the customer and verifying the customer’s identity on the basis of documents, data or information obtained from a reliable and independent source;
(b) identifying the beneficial owner and taking reasonable measures to verify that person’s identity so that the obliged entity is satisfied that it knows who the beneficial owner is, including, as regards legal persons, trusts, companies, foundations and similar legal arrangements, taking reasonable measures to understand the ownership and control structure of the customer;
(c) assessing and, as appropriate, obtaining information on the purpose and intended nature of the business relationship;
(d) conducting ongoing monitoring of the business relationship including scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the obliged entity’s knowledge of the customer, the business and risk profile, including where necessary the source of funds and ensuring that the documents, data or information held are kept up-to-date.
When performing the measures referred to in points (a) and (b) of the first subparagraph, obliged entities shall also verify that any person purporting to act on behalf of the customer is so authorised and identify and verify the identity of that person.
Member States shall require that verification of the identity of the customer and the beneficial owner take place before the establishment of a business relationship or the carrying out of the transaction.
Indeed, upon receipt of an application from the ‘indirect’ channel (Bank acting as intermediary), the Reference Data should have better quality.
More details about roles and responsibilities with intermediary will be provide in special agreements.
When Intermediary Bank takes part to the vetting process, the Bank Specialist provide the Reference Data with a signed Legal Entity Assertion.
The Vetting Specialist does consider the Reference Data reliability according to the source and he can carry out less checks.