Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions)
Ordinance
(2) Despite subsection (1)(a), a financial institution may verify the identity of a customer and any beneficial owner of the customer after establishing a business relationship with the customer if—
- (a) this is necessary not to interrupt the normal conduct of business with regard to the customer; and
- (b) any risk of money laundering or terrorist financing that may be caused by carrying out the verification after establishing the business relationship is effectively managed.
(3) A financial institution that carries out verification after establishing a business relationship with a customer under subsection (2) must complete the verification as soon as reasonably practicable after establishing the business relationship.
(4) If a financial institution is unable to comply with subsection (1) or (3), it—
- (a) must not establish a business relationship or carry out any occasional transaction with that customer; or
- (b) if it has already established a business relationship with that customer, must terminate the business relationship as soon as reasonably practicable.
4. Simplified customer due diligence
(1) In any of the circumstances set out in section 3(1)(a), (b) and (c) of this Schedule, a financial institution may, instead of carrying out all the customer due diligence measures, carry out only the measures set out in section 2(1)(a), (c) and (d) of this Schedule in relation to a customer if it has reasonable grounds to believe that the customer falls within subsection (3).
(2) If a customer of a financial institution not falling within subsection (3) has in its beneficial ownership chain an
