Anti-Money Laundering and Counter-Terrorism Financing Act 2006
96Due diligence assessments and records of correspondent banking relationships
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96 Due diligence assessments and records of correspondent banking relationships
Entry (1) A financial institution (the first institution) must not enter into a correspondent banking relationship with another financial institution that will involve a vostro account unless: (a) the first institution carries out a due diligence assessment in accordance with the AML/CTF Rules and prepares a written record of the assessment; and (b) a senior officer of the first institution approves the entering into of that relationship, having regard to such matters (if any) as are specified in the AML/CTF Rules.
Note: For geographical links, see section 100.
(2) If a financial institution (the first institution) enters into a correspondent banking relationship with another financial institution that involves a vostro account, the first institution must, within 20 business days after the day of entering into the relationship, prepare a written record that sets out: (a) its responsibilities under that relationship; and (b) the responsibilities of the other financial institution under that relationship. Ongoing assessments (3) If a financial institution (the first institution) is in a correspondent banking relationship with another financial institution that involves a vostro account, the first institution must: (a) carry out due diligence assessments in accordance with the AML/CTF Rules; and (b) carry out those assessments at the times worked out in accordance with the AML/CTF Rules; and (c) in relation to each assessment, prepare a written record of the assessment within 10 business days after the day of completing the assessment; and (d) in relation to each assessment, ensure that, within 20 business days after the preparation of the written record, a senior officer of the first institution reviews the written record and makes a decision about whether the first institution should remain in a correspondent banking relationship with the other financial institution.
Note: For geographical links, see section 100.
Civil penalty (4) Subsections (1), (2) and (3) are civil penalty provisions.