7‑3 Requirements for ongoing due diligen7‑3 Requirements for ongoing due diligence assessments

7‑3 Requirements for ongoing due diligence assessments

(1) For the purposes of paragraph 96(3)(a) of the Act, this section sets out the requirements for the due diligence assessments that a financial institution (the correspondent) must carry out if it is in a correspondent banking relationship with another financial institution (the respondent) that involves a vostro account. (2) The due diligence assessments required to be carried out are assessments of the risks of money laundering, financing of terrorism, proliferation financing and other serious crimes associated with the correspondent banking relationship. (3) In carrying out the due diligence assessments, the correspondent must consider the matters set out in paragraphs 7‑1(3)(a) to (g).

Note: Paragraphs 7‑1(3)(a) to (g) set out matters that the correspondent must consider in carrying out a due diligence assessment in relation to an entry into a correspondent banking relationship with the respondent that will involve a vostro account.