Money Laundering and Proceeds of Crime Act Act No. 4/2013 18 Reliance on customer identification by third parties (1) Financial institutions and designated non-financial businesses or professions may rely on intermediaries or other third-parties to perform customer identifications as required by section 5, if— (a) there is no suspicion of money laundering or the financing of terrorism; and (b) information on the identity of each customer and beneficial owner is provided immediately on opening of the account or commencement of the business relationship; and (c) the financial institution or designated non-financial business or profession is satisfied that the third party— (i) is able to provide without delay copies of the relevant identity document and other documents relating to the obligation of due diligence upon request; and (ii) is established, domiciled or ordinarily resides in a compliant jurisdiction. (2) A third party referenced in subsection (1)(c) may not claim professional privilege or a similar principle or rule with respect to the customer identification and beneficial ownership information and documentation required to be furnished under section 5. (3) A directive may prescribe jurisdictions that the Director considers to be compliant jurisdictions. (4) Compliance with this section does not relieve the financial institution or designated non-financial business or profession relying on the third party from ultimate responsibility for compliance with this Act, including all of the due diligence and reporting requirements thereof. 19 Customers not physically present (1) Financial institutions and designated non-financial business and professions shall take adequate measures to address the specific risk of money laundering and financing of terrorism in the event they conduct business relationships or execute transactions with a customer who is not physically present for purposes of identification. (2) Such measures shall ensure that the due diligence is no less effective than where the customer appears in person, and may require additional documentary evidence, or supplementary measures to verify or certify the documents supplied, or confirmatory certification from financial institutions or other documentary evidence or measures, as may be prescribed in directives. 20 High risk customers and politically-exposed persons Financial institutions and designated non-financial business and professions shall have appropriate risk management systems— (a) to identify customers whose activities may pose a high risk of money laundering and financing of terrorism, and shall exercise enhanced identification, verification and ongoing due diligence procedures with respect to such customers; and (b) to determine if a customer or a beneficial owner is a politically-exposed person, and if so shall— (i) obtain approval from senior management before establishing a business relationship with the customer, or later, as soon as an existing customer or beneficial owner is identified as a politically-exposed person; and (ii) take all reasonable measures to identify the source of wealth and funds and other assets of the customer or beneficial owner; and (c) provide increased and ongoing monitoring of the customer and the business relationship to prevent money laundering or the commission of other offences and to permit the financial institution, designated business or profession to fulfil its obligations under this Act, including all of the due diligence and reporting requirements thereof. - 26 -