6‑29 Requirements for agreement or arran6‑29 Requirements for agreement or arrangement on collection and verification of KYC information

6‑29 Requirements for agreement or arrangement on collection and verification of KYC information

(1) For the purposes of paragraph 37A(1)(b) of the Act, the following requirements are prescribed in relation to an agreement or arrangement of the kind referred to in paragraph 37A(1)(a) of the Act: (a) the other party to the agreement or arrangement must be: (i) a reporting entity; or (ii) a person regulated by one or more laws of a foreign country that give effect to the FATF Recommendations relating to customer due diligence and record‑keeping; (ab) the other person has in place measures to ensure compliance with: (i) if the other person is a reporting entity—the other person’s obligations under Part 2 (Customer due diligence) and Part 10 (Record‑keeping requirements) of the Act; or (ii) if the other person is a person mentioned in subparagraph (a)(ii)—the equivalent laws of the foreign country; (b) the agreement or arrangement must be appropriate to the risks of money laundering, financing of terrorism and proliferation financing that the first entity may reasonably face in providing its designated services, taking into account the matters mentioned in subsection (2) of this section; (c) the agreement or arrangement must enable the first entity to obtain all of the KYC information collected by the other person in accordance with paragraph 28(3)(c) of the Act: (i) before the first entity commences to provide a designated service; or (ii) if section 29 of the Act applies to the provision of a designated service—within the period mentioned in paragraph 29(c) of the Act; (d) the agreement or arrangement must enable the first entity to obtain copies of the data used by the other person to verify KYC information in accordance with paragraph 28(3)(d) of the Act immediately or as soon as practicable following a request from the first entity; (e) the agreement or arrangement must document the responsibilities of each party, including responsibilities for record‑keeping. (2) For the purposes of paragraph (1)(b), the matters are as follows: (a) the nature, size and complexity of the other person’s business, including: (i) the products and services offered by the other person, and the delivery channels by which it provides services; and (ii) the kinds of customers that the other person has; (b) the level of the risks of money laundering, financing of terrorism and proliferation financing in the country or countries in which the other person operates or of which the other person is a resident.