6‑27 Initial customer due diligence—tran6‑27 Initial customer due diligence—transferred customer

6‑27 Initial customer due diligence—transferred customer

For the purposes of paragraph 28(6)(b) of the Act, a reporting entity is taken to have established on reasonable grounds each of the matters mentioned in subsection 28(2) in relation to a customer if: (a) the customer became a customer of the reporting entity as a result of any of the following events occurring: (i) another reporting entity (the prior entity) has assigned, conveyed, sold or transferred the whole or a part of its business to the reporting entity; (ii) all or part of the assets and liabilities of another reporting entity (the prior entity) have become the assets and liabilities of the reporting entity as a result of a voluntary transfer that has taken effect under Part 3 of the Financial Sector (Transfer and Restructure) Act 1999; (iii) all or part of the assets and liabilities of another reporting entity (the prior entity) have become the assets and liabilities of the reporting entity as a result of a compulsory transfer that has taken effect under an Act; and (b) the reporting entity has obtained copies of the records that the prior entity kept under sections 107, 108, 111 and 114 of the Act in relation to the customer.

Note: This section relates to initial customer due diligence under section 28 of the Act. The reporting entity is also required to undertake ongoing customer due diligence under section 30 of the Act.