AI Summary of 30B. Application of risk assessment in applying customer due diligence.
The legal framework mandates that designated persons must identify and assess the risk of money laundering and terrorist financing pertinent to each customer or transaction. This process involves a comprehensive evaluation of various factors, including the relevant business risk assessment, specific risk variables, and any mitigating or exacerbating indicators as outlined in the respective schedules and sections.
Moreover, documentation of this determination is required when directed by the competent authority, reflecting the size and nature of the designated person. Non-compliance with these directives constitutes an offence, punishable by fines or imprisonment, thereby emphasising the critical importance of adherence to these regulatory obligations.
30B. Application of risk assessment in applying customer due diligence.
(1) For the purposes of determining the extent of measures to be taken under subsections (2) and (2A) of section 33 and subsections (1) and (3) of section 35 a designated person shall identify and assess the risk of money laundering and terrorist financing in relation to the customer or transaction concerned, having regard to -
(a) the relevant business risk assessment,
(b) the matters specified in section 30A(2),
(c) any relevant risk variables, including at least the following:
(i) the purpose of an account or relationship;
(ii) the level of assets to be deposited by a customer or the size of transactions undertaken;
(iii) the regularity of transactions or duration of the business relationship;
(iv) any additional prescribed risk variable,
(d) the presence of any factor specified in Schedule 3 or prescribed under section 34A suggesting potentially lower risk,