Money Laundering and Proceeds of Crime Act Act No. 4/2013 21 Customer identification and account-opening for cross-border correspondent banking relationships When providing into cross-border correspondent banking services, financial institutions shall— (a) obtain approval from senior management before establishing a correspondent banking relationship, either generally or on a case-by-case basis, as may be appropriate; and (b) identify and verify the identification of respondent financial institutions with which they conduct correspondent banking relationships; and (b) collect all the information it is lawfully capable of collecting on the nature of the respondent financial institution’s activities; and (d) based on such information, evaluate the respondent financial institution’s reputation and the nature of supervision to which it is subject; and (e) evaluate the controls implemented by the respondent financial institution with respect to anti-money laundering and combating the financing of terrorism; and (f) establish an agreement on the respective responsibilities of each party under the correspondent banking relationship to ensure against the risk of money laundering and to combat the financing of terrorism; and (g) in the case of a payable-through account, ensure that the respondent financial institution has verified its customer’s identity, has implemented mechanisms for ongoing monitoring with respect to its customers, and is capable of providing relevant identifying information on request; and (h) not enter into a correspondent banking relationship or other business relationship with a shell bank, and to discontinue such a relationship immediately upon becoming aware that the correspondent financial institution is a shell bank; and (i) not enter into a correspondent banking relationship or other business relationship with a respondent financial institution in foreign country if the respondent institution permits its accounts to be used by a shell bank, and to discontinue such a relationship immediately upon the coming into force of this Act. 22 Inability to fulfil customer identification and verification A financial institution or designated non-financial business and profession that cannot fulfil the requirements of this Part with respect to any customer or beneficial owner shall not establish an account for or maintain the business relationship with that customer and shall immediately make a report on the matter to the Unit. 23 Failure to comply with Part I of Chapter III Any person who intentionally or by gross negligence fails to undertake the identification of any customer or otherwise to fulfil the customer identification and risk management requirements in accordance with section 15 shall be guilty of an offence shall be guilty of an offence and liable to a fine not exceeding level ten or to imprisonment for a period not exceeding three years, or both such fine and such imprisonment. PART II ONGOING OBLIGATIONS OF FINANCIAL INSTITUTIONS AND DESIGNATED NON-FINANCIAL BUSINESSES AND PROFESSIONS 24 Record-keeping (1) Financial institutions and designated non-financial business and professions shall maintain all books and records with respect to their customers and transactions as set forth in subsection (2), and shall ensure that such records and the underlying information are available - 27 -