32Enhanced customer due diligence obligation

32 Enhanced customer due diligence obligation

In complying with the obligation imposed on a reporting entity under subsection 28(1) or 30(1) in relation to a customer, the reporting entity must apply enhanced customer due diligence measures appropriate to the ML/TF risk of the customer if one or more of the following apply to the customer: (a) the ML/TF risk of the customer is high; (b) if: (i) a suspicious matter reporting obligation arises for the reporting entity in relation to the customer; and (ii) the reporting entity proposes to continue to provide a designated service or designated services to the customer; (c) the customer, any beneficial owner of the customer, any person on whose behalf the customer is receiving the designated service, or any person acting on behalf of the customer, is a foreign politically exposed person; (d) the customer, any beneficial owner of the customer, any person on whose behalf the customer is receiving the designated service, or any person acting on behalf of the customer, is: (i) an individual who is physically present in a high risk jurisdiction for which the international body known as the Financial Action Task Force has called for enhanced due diligence to be applied; or (ii) a body corporate or legal arrangement that was formed in a high risk jurisdiction for which the international body known as the Financial Action Task Force has called for enhanced due diligence to be applied; (e) the designated service provided or proposed to be provided to the customer is provided or proposed to be provided as part of a nested services relationship; (f) the customer is of a kind specified in the AML/CTF Rules.

Note: For suspicious matter reporting obligation, see section 41.