SCHEDULES

SCHEDULE 7Terrorist financing and money laundering

Part 3Requirements that may be imposed by a direction

Customer due diligence

10

1

A direction may require a relevant person to undertake enhanced customer due diligence measures—

a

before entering into a transaction or business relationship with a designated person, and

b

during a business relationship with such a person.

2

The direction may do either or both of the following—

a

impose a general obligation to undertake enhanced customer due diligence measures;

b

require a relevant person to undertake specific measures identified or described in the direction.

3

“Customer due diligence measures” means measures to—

a

establish the identity of the designated person,

b

obtain information about—

i

the designated person and their business, and

ii

the source of their funds, and

c

assess the risk of the designated person being involved in relevant activities.

4

In sub-paragraph (3)(c) “relevant activities” means—

a

terrorist financing;

b

money laundering; or

c

the development or production of nuclear, radiological, biological or chemical weapons or the facilitation of that development or production.

5

A direction may not impose requirements of a kind mentioned in this paragraph on a person who is regarded as operating in the financial sector by virtue only of paragraph 5(2)(g) (certain insurance companies).