7‑4 Timing of ongoing due diligence asse7‑4 Timing of ongoing due diligence assessments

7‑4 Timing of ongoing due diligence assessments

(1) For the purposes of paragraph 96(3)(b) of the Act, this section sets out when a financial institution (the correspondent) must carry out due diligence assessments if it is in a correspondent banking relationship with another financial institution that involves a vostro account. (2) The correspondent must carry out due diligence assessments: (a) at times determined appropriate by the correspondent, based on consideration of: (i) the level of risk of money laundering, financing of terrorism, proliferation financing and other serious crimes associated with the correspondent banking relationship; and (ii) any material change in respect of those risks; and (b) in any event—at least every 2 years.