6‑31 Requirements for reliance on collec

6‑31 Requirements for reliance on collection and verification of KYC information

For the purposes of paragraph 38(e) of the Act, the following requirements are prescribed: (a) the other person 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) reliance on that procedure 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: (i) the nature, size and complexity of the other person’s business; and (ii) the kinds of services provided by the other person; and (iii) the kinds of customers to whom the other person’s services are provided; and (iv) the delivery channels by which the other person’s services are provided; and (v) 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; (c) for compliance with paragraph 28(3)(c) of the Act—the first entity has reasonable grounds to believe that it can obtain all of the KYC information collected by the other person in accordance with that paragraph: (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) for compliance with paragraph 28(3)(d) of the Act—the first entity has reasonable grounds to believe that it can obtain copies of the data used by the other person to verify KYC information in accordance with that paragraph immediately or as soon as practicable following a request from the first entity; (e) the first entity documents the reasons for the first entity concluding that the requirements of paragraphs (b) to (d) of this section are met.